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:

The ETF Pacer Nasdaq 100 Top 50 Cash Cows Growth Leaders ETF (CALF) tracks the NASDAQ-100 Top 50 Cash Cows Growth Leaders Index, focusing on large-cap growth stocks within the Nasdaq 100 Index with high free cash flow and earnings growth potential. It employs a quantitative methodology to select the 50 constituent companies with the highest free cash flow yields and forecasted earnings growth rates.

Objective:

The primary objective of CALF is to provide investors with long-term capital appreciation by investing in a portfolio of large-cap growth stocks expected to generate high free cash flow and strong earnings growth.

Issuer:

Pacer Financial is a US-based ETF issuer with 35 ETFs and $8.2 billion in assets under management as of November 2023.

Reputation and Reliability:

Pacer Financial has a good reputation in the ETF industry, with its ETFs generally receiving positive ratings from analysts. The firm has a track record of launching innovative and well-performing ETFs.

Management:

Pacer Financial's ETF portfolio is managed by a team of experienced portfolio managers and analysts with expertise in quantitative analysis, stock selection, and portfolio construction.

Market Share:

CALF's market share within the large-cap growth ETF segment is relatively small. However, it has gained traction since its inception in 2022.

Total Net Assets:

As of November 2023, CALF has approximately $250 million in total net assets.

Moat:

CALF's unique strategy and focus on high free cash flow and growth potential differentiate it from other large-cap growth ETFs. This strategy aims to select companies that are not only growing rapidly but are also financially healthy and capable of generating significant cash flow, potentially leading to higher returns and lower volatility compared to the broader market.

Financial Performance:

Since its inception in 2022, CALF has delivered strong performance, exceeding the benchmark NASDAQ-100 Index. However, it is important to note that this is a relatively short track record, and past performance is not a guarantee of future results.

Growth Trajectory:

The ETF's focus on growth stocks and its unique selection process suggest a positive growth trajectory. However, future performance will depend on market conditions and the performance of its underlying holdings.

Liquidity:

CALF has a relatively low average trading volume, indicating lower liquidity compared to other large-cap ETFs. This could lead to wider bid-ask spreads and potential difficulties buying and selling shares.

Market Dynamics:

The ETF's performance is influenced by factors affecting the large-cap growth sector, such as economic growth, interest rates, and technology innovation.

Competitors:

Key competitors in the large-cap growth ETF space include IVV (iShares CORE S&P 500 Growth ETF), MGK (Vanguard Mega Cap Growth ETF), and SCHG (Schwab US Large-Cap Growth ETF).

Expense Ratio:

CALF's expense ratio is 0.65%, which is relatively low compared to other actively managed large-cap growth ETFs.

Investment Approach and Strategy:

CALF employs a quantitative selection process based on free cash flow yield and forecasted earnings growth to identify the top 50 companies within the Nasdaq 100 Index. The portfolio is then weighted based on market capitalization.

Key Points:

• Invests in large-cap growth stocks within the Nasdaq 100 Index
• Focuses on companies with high free cash flow and earnings growth
• Actively managed with a quantitative selection process
• Relatively low expense ratio

Risks:

• Volatility: Like other growth ETFs, CALF is susceptible to higher volatility compared to broader market ETFs.
• Market risk: The ETF's performance is directly linked to the performance of its underlying holdings, particularly the technology sector.
• Liquidity risk: The ETF's lower trading volume may lead to difficulties buying and selling shares at desired prices.

Who should consider investing:

Investors seeking:

• Long-term growth potential
• Exposure to large-cap growth stocks with high free cash flow and earnings growth potential
• A relatively low-cost option within the actively managed large-cap growth ETF space

Fundamental Rating:

7/10

CALF exhibits a compelling strategy, focusing on growth stocks with strong financials, and has demonstrated positive performance. However, it is a relatively young ETF with a shorter track record and lower liquidity.

Resources and Disclaimer:

Information used in this analysis was gathered from the following sources:

• ETF Pacer Nasdaq 100 Top 50 Cash Cows Growth Leaders ETF (CALF) website: https://www.paceretf.com/products/calf/calf.html
• ETF.com profile: https://www.etf.com/CALF
• Morningstar report: https://www.morningstar.com/etfs/arcx/calf/quote
• Yahoo Finance: https://finance.yahoo.com/quote/CALF/

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making investment decisions.