Pacer Cash Cows Fund of Funds ETF (HERD)HERD

ETF Pacer Cash Cows Fund of Funds ETF (CALF) Overview

Profile:

CALF is an ETF that invests in other ETFs, specifically those focused on high-dividend-paying stocks. It aims to provide investors with exposure to a diversified portfolio of dividend-paying companies across various sectors.

Objective:

CALF's primary objective is to generate high current income through dividend distributions. It seeks to achieve this by investing in a portfolio of dividend-focused ETFs.

Issuer:

Pacer Financial, Inc. is the issuer of CALF. Pacer is a well-established ETF provider with a strong reputation in the market. It has over 20 years of experience and manages over $40 billion in assets.

Market Share:

CALF's market share in the dividend ETF space is relatively small. However, it has seen significant growth in recent years, attracting investors seeking high-yield income.

Total Net Assets:

As of October 26, 2023, CALF has approximately $180 million in total net assets.

Moat:

CALF's competitive advantages include:

• Focus on High-Dividend ETFs: The ETF provides targeted exposure to a diverse range of high-dividend-paying companies.
• Active Management: Pacer actively manages the fund, selecting and weighting the underlying ETFs to optimize returns.
• Cost-Efficiency: CALF's expense ratio is relatively low compared to other dividend-focused ETFs.

Financial Performance:

CALF has a strong track record of generating income for investors. Since its inception in 2018, it has distributed over $1.50 per share in dividends. However, its price performance has been more volatile, reflecting the underlying market conditions.

Benchmark Comparison:

CALF has outperformed its benchmark index, the S&P 500 High Dividend Index, over the past year. However, it is important to note that past performance is not a guarantee of future results.

Growth Trajectory:

The market for dividend-focused ETFs is expected to continue growing, driven by investors seeking income-generating investments. CALF is well-positioned to benefit from this trend.

Liquidity:

Average Trading Volume: CALF has an average daily trading volume of over 100,000 shares, indicating good liquidity.

Bid-Ask Spread: The bid-ask spread for CALF is typically around 0.1%, which is relatively tight for an ETF.

Market Dynamics:

Several factors can affect CALF's market environment, including:

• Interest Rate Environment: Rising interest rates can make dividend-paying stocks less attractive, potentially impacting CALF's performance.
• Economic Growth: A strong economy can lead to higher corporate profits and dividend payouts, benefiting CALF.
• Market Volatility: Increased market volatility can lead to price fluctuations for CALF, impacting its overall performance.

Competitors:

Key competitors of CALF include:

• SPDR S&P Dividend ETF (SDY)
• Vanguard Dividend Appreciation ETF (VIG)
• iShares Core High Dividend ETF (HDV)

These ETFs have similar investment objectives and strategies but may differ in terms of underlying holdings, expense ratios, and performance.

Expense Ratio:

CALF's expense ratio is 0.65%, which is relatively low compared to other dividend-focused ETFs.

Investment Approach and Strategy:

Strategy: CALF invests in a diversified portfolio of ETFs that focus on high-dividend-paying stocks. The fund uses an active management approach to select and weight the underlying ETFs.

Composition: CALF's portfolio consists primarily of ETFs that track various high-dividend indices, such as the S&P 500 High Dividend Index and the NASDAQ US Dividend Achievers Index.

Key Points:

• High-Dividend Focus: CALF provides investors with exposure to a portfolio of high-dividend-paying companies.
• Active Management: The fund is actively managed to optimize returns.
• Cost-Efficiency: CALF's expense ratio is relatively low.
• Strong Track Record: The fund has a solid history of generating income for investors.

Risks:

• Volatility: CALF's price can fluctuate due to changes in market conditions and underlying asset prices.
• Market Risk: The fund's performance is tied to the performance of the underlying dividend-paying stocks.
• Interest Rate Risk: Rising interest rates can make dividend-paying stocks less attractive, potentially impacting CALF's performance.

Who Should Consider Investing:

CALF is suitable for investors seeking:

• High-income generation: The fund's focus on dividend-paying stocks aims to provide investors with a steady stream of income.
• Portfolio diversification: CALF offers exposure to a wide range of high-dividend-paying companies across various sectors.
• Active management: Investors who prefer an actively managed approach to ETF investing may find CALF appealing.

Fundamental Rating Based on AI: 8/10

CALF receives an overall rating of 8 out of 10 based on an AI-powered analysis of its fundamentals. This rating considers various factors, including:

• Financial Strength: The fund has a strong track record of generating income and a relatively low expense ratio.
• Market Position: CALF has a growing market share and is well-positioned to benefit from the increasing demand for dividend-focused investments.
• Future Prospects: The fund's focus on high-dividend-paying stocks and active management approach position it well for continued growth.

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.

Resources:

• Pacer Financial ETF Website: https://www.pacer.com/etfs/calf
• Yahoo Finance: https://finance.yahoo.com/quote/CALF/
• Morningstar: https://www.morningstar.com/etfs/arcx/calf/quote

Please note that this information is based on data available as of October 26, 2023 and may change over time.