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CAFG - ETF AI Analysis

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CAFG

Pacer US Small Cap Cash Cows Growth Leaders ETF (CAFG)

Rating:71Outperform
Price Target:
CAFG, the Pacer US Small Cap Cash Cows Growth Leaders ETF, earns a solid overall rating thanks to strong contributors like Powell Industries and Krystal Biotech, which combine healthy financial performance, growth initiatives, and supportive earnings commentary. Other holdings such as DigitalOcean and Kodiak Gas Services add growth potential but bring risks like high leverage and stretched valuations, while Adeia’s litigation issues and some overvalued or bearish-trending names slightly weigh on the fund. The main risk factor is its focus on smaller, growth-oriented companies where high valuations, leverage, and company-specific issues can lead to more volatility.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and in recent months, indicating solid momentum.
Leading Holdings Performing Well
Most of the top holdings have delivered strong year-to-date results, helping drive the fund’s overall returns.
Broad Sector Mix Within Small Caps
Holdings spread across technology, industrials, health care, energy, and several other sectors help reduce the impact of weakness in any single industry.
Negative Factors
Higher Expense Ratio
The fund’s fee is on the higher side for an ETF, which can eat into long-term returns compared with lower-cost options.
Single-Country Concentration
With almost all assets in U.S. stocks, the ETF offers little geographic diversification and is highly tied to the U.S. market.
Exposure to Volatile Small-Cap Names
Because the fund focuses on small-cap companies, including some with mixed recent performance, investors may experience larger price swings than with more established large-cap funds.

CAFG vs. SPDR S&P 500 ETF (SPY)

CAFG Summary

The Pacer US Small Cap Cash Cows Growth Leaders ETF (CAFG) tracks the Pacer US Small Cap Cash Cows Growth Leaders Index, focusing on smaller U.S. companies with strong cash flow and growth potential. It holds a mix of technology, industrial, health care, and energy stocks, including names like DigitalOcean Holdings and Teradata. Someone might invest in this ETF to seek higher long-term growth and diversify beyond large, well-known companies. However, because it focuses on small-cap growth stocks, its price can be more volatile and may go up and down more sharply than the overall market.
How much will it cost me?The Pacer US Small Cap Cash Cows Growth Leaders ETF (CAFG) has an expense ratio of 0.59%, meaning you’ll pay $5.90 per year for every $1,000 invested. This is higher than average because the fund is actively managed, focusing on identifying small-cap companies with strong growth and cash flow potential.
What would affect this ETF?The Pacer US Small Cap Cash Cows Growth Leaders ETF (CAFG) could benefit from strong growth in sectors like technology and healthcare, which make up a significant portion of its holdings, especially if innovation and demand in these areas continue to thrive. However, small-cap stocks are often more sensitive to economic downturns and interest rate hikes, which could negatively impact the ETF's performance. Additionally, regulatory changes or sector-specific challenges in industries like energy or consumer cyclical could pose risks to its growth potential.

CAFG Top 10 Holdings

CAFG is leaning hard into U.S. small-cap growth, with a clear tilt toward tech and industrial “cash cows” that are doing much of the heavy lifting. DigitalOcean has been a standout, riding enthusiasm around cloud and AI, while Powell Industries and Argan provide a steadier industrial backbone. On the health care side, Krystal Biotech has been rising, adding some biotech spark, and Kodiak Gas Services gives energy exposure that’s also been climbing. A few names like Adeia have been lagging, but overall the fund’s U.S.-only lineup is being pulled forward by its tech and industrial leaders.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
DigitalOcean Holdings5.28%$1.29M$16.28B511.17%
73
Outperform
Powell Industries4.93%$1.20M$10.36B400.62%
76
Outperform
Argan4.24%$1.03M$9.31B208.10%
73
Outperform
Krystal Biotech3.34%$813.06K$9.11B137.80%
80
Outperform
Teradata2.32%$565.40K$3.20B68.25%
68
Neutral
Kodiak Gas Services, Inc.2.30%$561.14K$6.75B81.56%
68
Neutral
Digi International2.16%$526.25K$2.52B111.14%
77
Outperform
Protagonist Therapeutics2.08%$505.67K$6.40B89.27%
68
Neutral
Innovex International2.07%$503.43K$1.84B86.32%
76
Outperform
Knowles1.93%$469.16K$3.20B132.82%
61
Neutral

CAFG Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
29.76
Positive
100DMA
28.59
Positive
200DMA
27.11
Positive
Market Momentum
MACD
0.54
Positive
RSI
65.62
Neutral
STOCH
83.80
Negative
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For CAFG, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 31.37, equal to the 50-day MA of 29.76, and equal to the 200-day MA of 27.11, indicating a bullish trend. The MACD of 0.54 indicates Positive momentum. The RSI at 65.62 is Neutral, neither overbought nor oversold. The STOCH value of 83.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CAFG.

CAFG Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$24.37M0.59%
71
Outperform
$59.52M0.85%
65
Neutral
$52.61M0.95%
64
Neutral
$17.17M0.49%
67
Neutral
$10.95M0.38%
68
Neutral
$7.05M0.55%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CAFG
Pacer US Small Cap Cash Cows Growth Leaders ETF
32.04
7.76
31.96%
TMFS
Motley Fool Small-Cap Growth ETF
MMSC
First Trust Multi-Manager Small Cap Opportunities ETF
ACSG
American Century Small Cap Growth Insights ETF
QSML
WisdomTree U.S. SmallCap Quality Growth Fund
SAWS
AAM Sawgrass US Small Cap Quality Growth ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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