From Yahoo Finance: 2025-06-02 08:00:00

The Pacer US Small Cap Cash Cows ETF (CALF) has seen a dramatic reversal in performance in 2025, leading to $2.6 billion in outflows and a drop in assets from $8.1 billion to $4.3 billion. The fund’s concentrated nature and unique strategy have contributed to its underperformance compared to its peers.

CALF’s struggles highlight the risks of a concentrated portfolio of small-cap stocks, with top holdings like Xerox Holdings Corp. and Peabody Energy Corp. dragging down returns. Despite its value-leaning approach, the fund has fallen 12.5% in 2025 while other small-cap funds have seen smaller declines or even gains.

Investors have quickly exited CALF due to its poor performance, with a more disciplined, cash-flows-focused strategy failing to deliver returns. This contrasts with the success of the Vanguard Small-Cap Value ETF (VBR), which has outperformed CALF over the past 17 months. The fund’s downfall underscores the volatility of concentrated small-cap portfolios.



Read more at Yahoo Finance: Assets Flee CALF as Performance Slumps