For investors seeking momentum, Pacer US Small Cap Cash Cows 100 ETF CALF is probably on radar. The fund just hit a 52-week high and is up 27.92% from its 52-week low price of $35.28/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
CALF in Focus
The underlying Pacer US Small Cap Cash Cows Index uses an objective, rules-based methodology to provide exposure to small-capitalization U.S. companies with high free cash flow yields. The fund has major allocations to the consumer discretionary sector, with 36.8% of the assets of the fund, followed by the industrial sector with 19.9%. The product charges 59 bps in annual fees (See: all the Small Cap Value ETF here).
Why the Move?
Small-cap stocks are closely connected to the domestic economy because their capitalization is influenced by how well the domestic economy is doing. A stronger-than-anticipated third-quarter 2023 performance by the U.S. economy and cooling inflation levels are the key tailwinds for the fund. The broad market index, the S&P 500, set the record high of 2023, driven by optimism that the Fed is done with interest rate hikes. This gave a boost to the prospects of the fund.
More Gains Ahead?
Currently, CALF has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance in the near term, with a positive weighted alpha of 23.53, which gives cues of a further rally.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.
Get it free >>Pacer US Small Cap Cash Cows 100 ETF (CALF): ETF Research Reports
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
