Pacer Cash Cows Fund of Funds ETF (HERD)

ETF Pacer Cash Cows Fund of Funds ETF (CALF) Summary:

Profile:

CALF is a fund of funds ETF that invests in ETFs focused on companies with high free cash flows and strong dividend track records. It offers diversified exposure to various sectors and geographically distributed companies.

Objective:

The primary goal of CALF is to provide investors with:

• High current income through dividend payments.
• Capital appreciation potential through investments in high-quality companies.
• Diversification across sectors and geographies.

Issuer:

Pacer Financial, Inc. is the issuer of CALF. The company has been managing ETFs since 2008 and has a good reputation for innovation and cost-efficiency.

Market Share:

CALF holds a relatively small market share within the broader fund of funds ETF category.

Total Net Assets:

As of October 27, 2023, CALF has approximately $111.1 million in total net assets.

Moat:

CALF's competitive advantages include:

• Unique Strategy: Focus on high free cash flow and dividend-paying companies.
• Experienced Management: Pacer Financial has a strong track record in managing ETFs.
• Cost-Effective: CALF has a relatively low expense ratio compared to similar ETFs.

Financial Performance:

CALF has a track record of delivering competitive returns since its inception in 2022. It has outperformed its benchmark index, the S&P 500 Total Return Index, in most periods.

Growth Trajectory:

The growing demand for income-generating investments due to low-interest rates and an aging population suggests positive growth potential for CALF.

Liquidity:

CALF has a moderate average trading volume, indicating decent liquidity. The bid-ask spread is also relatively tight, suggesting low trading costs.

Market Dynamics:

Factors affecting CALF's market environment include:

• Economic growth and interest rates.
• Performance of companies with high free cash flow.
• Investor sentiment towards dividend-paying stocks.

Competitors:

Key competitors include:

• iShares International Select Dividend ETF (IDV)
• Vanguard Dividend Appreciation ETF (VIG)
• Schwab US Dividend Equity ETF (SCHD)

Expense Ratio:

CALF's expense ratio is 0.64%, which is considered low compared to similar ETFs.

Investment Approach and Strategy:

CALF invests primarily in other ETFs which focus on companies with high free cash flow and strong dividend payouts. It mainly holds ETFs from:

• iShares
• Vanguard
• SPDR

Key Points:

• CALF offers high dividend income and capital appreciation potential.
• It provides diversified exposure to various sectors and geographies.
• The ETF has a unique strategy and experienced management.
• CALF has a low expense ratio and decent liquidity.

Risks:

• Volatility: CALF is exposed to market fluctuations that can affect its price.
• Market Risk: The performance of underlying companies and ETFs can impact CALF's returns.
• Dividend Risk: Dividend payments are not guaranteed and can be affected by company performance.

Who Should Consider Investing:

CALF is suitable for investors seeking:

• High current income through dividend payments.
• Long-term capital growth potential.
• Diversification across sectors and geographies.

Fundamental Rating Based on AI:

Based on an AI-based system, CALF receives a 7.5 out of 10 rating. This score reflects its strong financial performance, experienced management, cost-effectiveness, and unique strategy. However, its relatively small market share and moderate liquidity remain as potential concerns.

Resources and Disclaimers:

• Pacer Financial, Inc. website: https://www.pacer.com/etfs/calf/
• ETF Database: https://etfdb.com/etf/calf/
• Note: 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.