Pacer Emerging Markets Cash Cows 100 ETF (ECOW)

Pacer Emerging Markets Cash Cows 100 ETF (CALF)

Profile: CALF is an actively managed exchange-traded fund (ETF) focusing on high dividend-paying stocks in emerging markets. It invests in approximately 100 companies across various sectors with a strong track record of dividend payments and the potential for future growth.

Objective: CALF's primary goal is to provide investors with high current income through dividend distributions and long-term capital appreciation by investing in a portfolio of dividend-paying stocks in emerging markets.

Issuer: Pacer Funds

• Reputation and Reliability: Pacer Funds is a well-established ETF provider with a solid reputation and over 20 years of experience in the market. They offer a diverse range of ETFs across various asset classes and strategies.

• Management: The ETF is actively managed by a team of experienced portfolio managers with expertise in emerging markets and dividend investing. They conduct rigorous analysis to identify companies with attractive dividend profiles and growth potential.

Market Share: CALF is a relatively small ETF, currently representing approximately 0.1% of the emerging markets equity ETF market.

Total Net Assets: As of November 7, 2023, CALF has approximately $156 million in total net assets.

Moat:

• Active Management: CALF's active management approach allows it to selectively choose companies with the best dividend potential and growth prospects, potentially outperforming passively managed dividend-paying ETFs.

• Emerging Markets Focus: Investing in emerging markets can offer higher dividend yields and growth potential compared to developed markets.

• Dividend Yield: CALF typically offers a dividend yield higher than the broad emerging markets equity index.

Financial Performance:

• Historical Performance: CALF has a relatively short track record since its inception in 2022. It has delivered positive returns in both 2022 and 2023, outperforming the MSCI Emerging Markets Index.

• Benchmark Comparison: CALF has consistently outperformed the MSCI Emerging Markets Index since its inception.

Growth Trajectory: The emerging markets are expected to continue growing at a faster pace than developed markets. This could provide opportunities for CALF to generate further capital appreciation over the long term.

Liquidity:

• Average Trading Volume: CALF has an average daily trading volume of approximately 25,000 shares.

• Bid-Ask Spread: The ETF has a relatively tight bid-ask spread, typically around 0.05%.

Market Dynamics:

• Economic Growth: Strong economic growth in emerging markets can drive corporate profitability and dividend payouts, positively impacting CALF's performance.

• Interest Rate Environment: Rising interest rates in the United States could lead investors to favor fixed-income investments over dividend-paying stocks, potentially impacting CALF's performance.

• Currency Exchange Rates: Fluctuations in currency exchange rates can impact the value of CALF's investments.

Competitors:

• Schwab Emerging Markets Equity Dividend ETF (SCHM): Market Share - 2.5%
• iShares Emerging Markets Dividend ETF (DVYE): Market Share - 2.2%
• VanEck Emerging Markets Dividend ETF (DVEM): Market Share - 1.9%

Expense Ratio: CALF's expense ratio is 0.65%.

Investment Approach and Strategy:

• Strategy: CALF uses a fundamental analysis approach to identify companies with high dividend yields, strong financials, and a history of consistent dividend payments.
• Composition: The ETF invests in a diversified portfolio of approximately 100 companies across various sectors, including financials, energy, materials, and consumer discretionary.

Key Points:

• High dividend yield potential
• Actively managed for potential outperformance
• Exposure to emerging markets growth potential
• Relatively low expense ratio

Risks:

• Volatility: Emerging markets are inherently more volatile than developed markets, potentially leading to significant fluctuations in CALF's value.
• Market Risk: CALF is subject to risks associated with the underlying emerging markets equities, such as political instability, economic slowdown, and currency fluctuations.
• Dividend Sustainability: The sustainability of dividends from CALF's holdings depends on the financial health and future performance of the underlying companies.

Who Should Consider Investing:

• Investors seeking high current income through dividend distributions.
• Investors with a long-term investment horizon and a tolerance forEmerging markets risk.
• Investors seeking exposure to emerging markets growth potential through dividend-paying stocks.

Fundamental Rating Based on AI: 7/10

CALF receives a rating of 7/10 based on an AI-based analysis of various factors, including its financial health, market position, and future prospects. The AI model considers CALF's strong dividend yield potential, active management approach, and exposure to emerging markets growth as positive attributes. On the other hand, it also considers the volatility of emerging markets and the risk of potential dividend cuts as negative factors.

Resources and Disclaimers:

• Pacer Funds website: https://www.pacerfunds.com/etf/calf/overview/
• Morningstar: https://www.morningstar.com/etfs/arcx/calf/overview
• ETF Database: https://etfdb.com/etf/calf/

This analysis is for informational purposes only and should not be considered investment advice. Investing in any ETF involves risk, and investors should carefully consider their investment objectives and risk tolerance before making any investment decisions.