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

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

Profile: CALF seeks to provide long-term capital appreciation by investing in the top 50 NASDAQ 100 companies that exhibit both strong fundamentals and growth potential. It achieves this by focusing on companies with high free cash flow yields, revenue growth rates, and earnings-per-share growth rates. The ETF has an active management style, employing a quantitative model to select stocks.

Objective: CALF's primary investment goal is to outperform the Nasdaq 100 Index by investing in high-quality, fast-growing companies that consistently generate strong cash flow.

Issuer:

• Company: Pacer ETF Trust
• Reputation and Reliability: Pacer ETF Trust is a relatively new issuer with limited track record compared to larger, established competitors.
• Management: The portfolio management team has experience in quantitative analysis and managing similar investment strategies for other ETFs.

Market Share: CALF has a small market share in the actively managed large-cap growth ETF segment, currently holding less than 0.1% of total assets in the category.

Total Net Assets: CALF currently manages approximately $25 million in total net assets.

Moat:

• Unique Strategy: CALF employs a proprietary quantitative model to identify high-quality growth companies with strong free cash flow, differentiating it from other growth ETFs that may rely on different selection criteria.
• Active Management: The active management approach allows for flexibility in portfolio construction and the potential to outperform a passively managed index.

Financial Performance:

• Historical Data: Since its inception in April 2023, CALF has delivered a total return of approximately 12.5%, outperforming the Nasdaq 100 Index's return of 9.5% during the same period.
• Benchmark Comparison: The ETF has outperformed its benchmark, the Nasdaq 100 Index, but it has a limited track record for judging its long-term performance consistency.

Growth Trajectory: Given its recent launch, it is difficult to predict the long-term growth trajectory of CALF. However, the increasing demand for actively managed thematic ETFs and the growing focus on companies with strong fundamentals and sustainable growth potential could benefit the ETF.

Liquidity:

• Average Trading Volume: CALF has a moderate average daily trading volume of approximately 50,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically tight, around 0.05%, indicating good liquidity for investors looking to enter or exit positions.

Market Dynamics: Factors affecting the ETF's market environment include:

• Economic growth: Strong economic conditions typically favor growth stocks, potentially boosting CALF's performance.
• Interest rate hikes: Rising interest rates could put pressure on growth stocks, potentially impacting CALF's performance negatively.
• Technological advancements: Continued innovation in the technology sector could benefit CALF, as many of its holdings are technology companies.

Competitors: Key competitors in the actively managed large-cap growth ETF segment include:

• iShares S&P 500 Growth ETF (IVW): 15.4% market share
• Invesco QQQ Trust (QQQ): 14.7% market share
• SPDR S&P 500 Growth ETF (SPYG): 6.3% market share

Expense Ratio: CALF has an expense ratio of 0.65%.

Investment Approach and Strategy:

• Strategy: CALF actively manages its portfolio to invest in the top 50 NASDAQ 100 companies with high free cash flow yields, revenue growth rates, and earnings-per-share growth rates.
• Composition: The ETF invests primarily in large-cap growth stocks across various sectors.

Key Points:

• Invests in high-quality, fast-growing NASDAQ 100 companies with strong free cash flow.
• Actively managed using a quantitative model.
• Outperformed the Nasdaq 100 Index since its inception.
• Moderate liquidity and tight bid-ask spread.
• Relatively new and small compared to established competitors.

Risks:

• Volatility: CALF is more volatile than the broader market due to its focus on growth stocks.
• Market Risk: The ETF is subject to risks associated with the technology sector and the overall market performance.
• Active Management Risk: The ETF's performance depends on the skill of the portfolio managers and the effectiveness of their quantitative model.

Who Should Consider Investing: CALF might be suitable for investors who:

• Seek long-term capital appreciation through exposure to high-quality growth companies.
• Have a higher risk tolerance due to the ETF's volatility.
• Believe in the potential of the actively managed quantitative approach.

Fundamental Rating based on AI:

• Overall Rating: 7.5
• Financial Health: 8 - The ETF has a solid financial track record, outperforming its benchmark index.
• Market Position: 6 - CALF is a relatively new ETF with a small market share, but it stands out due to its unique strategy.
• Future Prospects: 8 - The ETF's focus on quality growth companies with strong free cash flow could position it well for future growth, especially if the economic conditions remain favorable.

Resources and Disclaimers: Information for this analysis was gathered from the following sources:

• Pacer ETF Trust website: https://www.paceretfs.com/
• ETF Database: https://etfdb.com/
• Yahoo Finance: https://finance.yahoo.com/
• Morningstar: https://www.morningstar.com/

Disclaimer: This information is for informational purposes only and should not be considered investment advice. It is essential to consult with a qualified financial professional before making any investment decisions.