Are you a growth-oriented investor looking for stocks with a lot of upside? A good opportunity could be to invest in small-cap stocks. These are stocks which are still in their early growth stages and although they come with more risk than big growth stocks, they also carry much more upside.

One exchange-trade fund (ETF) that can give you exposure to small-cap stocks is the Pacer US Small Cap Cash Cows 100 ETF (CBOE:CALF). Focused on financial stability and profitability, CALF targets small-cap companies in the United States with strong cash flows. By already vetting out companies with strong fundamentals, it can help minimize the risk of investing in small-cap stocks.

The fund follows a rules-based strategy that identifies 100 small-cap companies in the US with the highest free cash flow yield. This metric is crucial as it indicates a company's ability to generate cash, which can be pivotal for growth, dividend payments, and financial stability. Many growing businesses can be risky investments because of a lack of strong free cash flow. With CALF, that’s not a big concern for investors.

CALF also maintains diversification across various sectors. This diversification helps mitigate sector-specific risks and capitalizes on growth opportunities across the broader market.

The largest stock in the fund, Alpha Metallurgical Resources (NYSE:AMR), accounts for just 2.3% of the ETF’s total weight. This is important as it means investors aren’t overly exposed to a single stock in the fund.

The ETF’s expense ratio is 0.59%, which is fair compared to other funds.

Last year, CALF generated total returns, including dividends, of 35%.