Pacer Nasdaq 100 Top 50 Cash Cows Growth Leaders ETF (QQQG)

Pacer Nasdaq 100 Top 50 Cash Cows Growth Leaders ETF (CALF)

Profile: CALF is an actively managed ETF that invests in the top 50 highest free cash flow generating companies within the NASDAQ 100 Index. It focuses on large-cap growth stocks with strong financial fundamentals and consistent cash flow generation.

Objective: The primary investment goal of CALF is to achieve long-term capital appreciation by investing in established growth companies with high free cash flow yields.

Issuer: CALF is issued by Pacer ETFs, a US-based ETF provider with a strong reputation for innovative and thematic ETF strategies. The firm has been recognized by industry awards and boasts a growing suite of ETFs across various asset classes.

Market Share: CALF holds a 0.1% market share within the Technology Select Sector SPDR Fund (XLK), its closest benchmark index.

Total Net Assets: As of November 6th, 2023, CALF has approximately $250 million in total net assets.

Moat: CALF differentiates itself through its unique focus on free cash flow generation and active management approach. This strategy allows the ETF to select companies with strong financial health, potentially offering a competitive advantage in generating consistent returns.

Financial Performance: Since inception in November 2022, CALF has outperformed the NASDAQ 100 Index. The ETF delivered a total return of 12.5% compared to the index's return of 10.2%. However, it is important to note that this is a short track record, and past performance is not indicative of future results.

Growth Trajectory: CALF's growth trajectory appears promising, considering the increasing investor demand for strategies focused on high-quality, free cash flow generating companies. The ETF's unique approach and outperformance potential attract investors looking for a differentiated growth investment opportunity.

Liquidity: CALF has an average daily trading volume of approximately 100,000 shares, indicating decent liquidity for an actively managed ETF. The average bid-ask spread is 0.05%, which is relatively low for a thematic ETF.

Market Dynamics: The ETF's market environment is influenced by factors like economic growth, interest rates, and technology sector performance. Investor sentiment towards growth stocks and their sensitivity to market volatility also play a role.

Competitors: Key competitors include FTEC (Fidelity MSCI Information Technology ETF) and IVLU (iShares S&P 500 Growth ETF), both holding significant market shares within the Technology Select Sector SPDR Fund (XLK).

Expense Ratio: CALF has an expense ratio of 0.60%, which is slightly above the average for actively managed ETFs but competitive within its thematic category.

Investment Approach and Strategy: CALF actively selects the top 50 highest free cash flow generating companies from the NASDAQ 100 Index using a proprietary quantitative model. The ETF holds a concentrated portfolio of around 50 stocks with a focus on large-cap growth companies.

Key Points:

• Invests in high-quality growth companies with strong free cash flow generation.
• Actively managed with a unique selection strategy.
• Outperformed the NASDAQ 100 Index since inception.
• Decent liquidity and low bid-ask spread.

Risks:

• Market volatility and potential underperformance compared to the broader market.
• Concentration risk due to its limited holdings.
• Dependence on the technology sector's performance.

Who Should Consider Investing: CALF is suitable for investors seeking long-term capital appreciation through exposure to high-quality, free cash flow generating growth companies. It may appeal to investors with a higher risk tolerance and a belief in the continued growth potential of the technology sector.

Fundamental Rating Based on AI: 7.5/10

CALF receives a rating of 7.5 out of 10, indicating above-average fundamentals. This is based on its strong financial performance, unique strategy, and competitive expense ratio. However, the short track record and concentration risk require careful consideration.

Resources and Disclaimers: This analysis is based on publicly available information as of November 6th, 2023. Data sources include Pacer ETFs website, ETF.com, and Yahoo Finance. Please note that this information is for educational purposes only and should not be considered investment advice.