Pacer US Small Cap Cash Cows Growth Leaders ETF (CAFG) is an exchange-traded fund that tracks the Pacer US Small Cap Cash Cows Growth Leaders Index, providing investors with targeted exposure to small-capitalization U.S. companies exhibiting above-average free cash flow margins and strong growth characteristics. The fund employs a rules-based methodology to select approximately 100 constituents from the S&P SmallCap 600 Index, excluding financial and real estate firms; it screens for positive projected free cash flows and earnings over the next two fiscal years, ranks survivors by trailing twelve-month free cash flow margin (defined as free cash flow divided by sales), and weights holdings by price momentum scores to pursue long-term capital appreciation. Primarily investing in U.S. equities across diversified sectors such as industrials, healthcare, and consumer discretionary, CAFG targets institutional and retail investors seeking small-cap growth with a quality filter, boasting index characteristics like an 18.96% free cash flow margin and 20.82 price-to-earnings ratio as of March 31, 2025, surpassing the S&P SmallCap 600 benchmarks.
Launched on May 1, 2023, and domiciled in the United States, the ETF is issued by Pacer Funds Trust, with portfolio management led by Bruce Kavanaugh and Danke Wang; it maintains a net expense ratio of 0.59% and total net assets of approximately $18.82 million as of the latest reporting. Pacer ETFs, the sponsor behind the broader Cash Cows ETF series, introduced CAFG as a growth-oriented complement to its free cash flow-focused offerings, expanding the lineup to nine funds with over $17 billion in assets under management at inception and contributing to Pacer's total of 47 ETFs surpassing $23.8 billion in AUM by May 2023. No significant partnerships, acquisitions, funding rounds, or strategic shifts specific to CAFG have been reported in the last two years; the fund continues to rebalance quarterly per its index methodology, with performance reflecting small-cap market dynamics, including a year-to-date return of -3.69% at net asset value as of June 30, 2025. Operations remain focused on U.S. markets without notable geographic expansions or reorganizations.