2024-06-21 12:45:54 ET
Summary
- Pacer US Small Cap Cash Cows 100 ETF is a small-cap value ETF that consistently emphasizes quality and value. Its 0.59% expense ratio is steep, but it's been the second-best-performing SCV fund since its June 2017 launch.
- However, recent results aren't as strong. The CALF ETF has struggled YTD, leading me to investigate why. My fundamental analysis reveals weak growth is the most likely culprit.
- I suspect CALF has crossed a "minimum growth" threshold that's caused investors to ignore its strong value and quality metrics, similar to what happened to SCHD.
- Still, CALF will have many opportunities to right the ship with its quarterly reconstitution schedule. Meanwhile, AVUV and XSVM are solid alternatives worth exploring.
Investment Thesis
I last reviewed the Pacer US Small Cap Cash Cows 100 ETF F ( CALF ) on May 21, 2023, downgrading it based on downward-trending sales and earnings growth rates. Despite my cautious outlook, CALF has continued to shine approximately one year later, delivering total returns that rank #8/34 in the small-cap value category. The chart below highlights CALF's total returns since I wrote that article, alongside other competitors I'll evaluate today. ...
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For further details see:
CALF: Is This Popular Free Cash Flow Yield ETF In Serious Trouble?