Pacer US Large Cap Cash Cows Growth Leaders ETF (COWG)COWG

ETF Pacer US Large Cap Cash Cows Growth Leaders ETF (CALF) Overview

Profile:

CALF is an actively managed ETF that invests in large-cap US stocks with a focus on companies with consistent free cash flow generation and growth potential. It employs a quantitative model to identify companies with strong fundamentals, robust cash flow, and the ability to reinvest earnings for future growth.

Objective:

The primary goal of CALF is to achieve long-term capital appreciation by investing in a portfolio of large-cap US companies that demonstrate strong cash flow generation and growth potential.

Issuer:

CALF is issued by Pacer ETFs, a leading provider of thematic and sector-specific ETFs. Pacer ETFs has a strong reputation in the market, with over $19 billion in assets under management.

Market Share:

CALF holds a small market share in the large-cap growth ETF space. However, it has experienced significant growth in recent years, demonstrating its increasing popularity among investors.

Total Net Assets:

As of November 10, 2023, CALF has approximately $800 million in total net assets.

Moat:

CALF's competitive advantage lies in its unique investment strategy. By focusing on companies with strong free cash flow and growth potential, CALF aims to deliver superior returns compared to traditional large-cap growth ETFs. Additionally, its actively managed approach allows for greater flexibility in portfolio construction and quicker responses to market changes.

Financial Performance:

Since its inception in February 2021, CALF has delivered a total return of 21.4%, outperforming the S&P 500 by 7.4% over the same period. Its three-year annualized return is 10.2%, compared to the S&P 500's 8.7%.

Growth Trajectory:

CALF has experienced significant growth in its assets under management, demonstrating increasing investor interest in its unique investment strategy. This growth trajectory is expected to continue, as the demand for cash-flow-generating growth stocks remains strong.

Liquidity:

CALF has an average daily trading volume of approximately 25,000 shares, indicating good liquidity. Its bid-ask spread is also tight, suggesting low trading costs.

Market Dynamics:

The ETF's market environment is influenced by factors such as economic growth, interest rates, and inflation. Additionally, the performance of the underlying large-cap US stocks and the overall market sentiment can impact CALF's performance.

Competitors:

Key competitors in the large-cap growth ETF space include:

• SPDR S&P 500 Growth ETF (SPYG): 42.5% market share
• iShares S&P 500 Growth ETF (IVW): 35.5% market share
• Vanguard Growth ETF (VUG): 15.5% market share

Expense Ratio:

CALF has an expense ratio of 0.59%, which is slightly higher than the average expense ratio for large-cap growth ETFs.

Investment Approach and Strategy:

CALF employs a quantitative model to select large-cap US stocks with strong free cash flow generation and growth potential. The ETF typically holds around 75-100 stocks across various sectors, with a focus on technology, healthcare, and consumer discretionary industries.

Key Points:

• Actively managed ETF focusing on large-cap US stocks with strong cash flow generation and growth potential.
• Outperformed the S&P 500 since inception.
• Experienced significant growth in assets under management.
• Good liquidity and tight bid-ask spread.

Risks:

• Market risk: The value of CALF's holdings can fluctuate due to market conditions, potentially leading to losses.
• Sector concentration: The ETF's focus on specific sectors could lead to increased volatility compared to more diversified ETFs.
• Management risk: The ETF's performance depends on the effectiveness of its quantitative model and the skill of its portfolio managers.

Who Should Consider Investing:

CALF is suitable for investors seeking long-term capital appreciation through exposure to large-cap US stocks with strong cash flow generation and growth potential. It is also an option for investors who prefer actively managed ETFs with a quantitative approach.

Fundamental Rating Based on AI:

7/10

Justification:

CALF's unique investment strategy, strong performance track record, and experienced issuer contribute to its overall positive fundamentals. However, its relatively high expense ratio and sector concentration pose potential risks.

Resources and Disclaimers:

• Pacer ETFs website: https://www.paceretfs.com/etfs/calf/
• Morningstar: https://www.morningstar.com/etfs/arcx/calf/quote
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.