Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) trades at $29.52 with AI Score 44/100 (Grade C). Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) is a strategy-driven exchange-traded fund focused on… Market cap: $1.17M, Sector: Financial services.
Price as of Aug 21, 2026 · Last analyzed: Mar 17, 2026Analyst Coverage for QFRD: QFRD does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates QFRD against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
QFRD: the 3 scored disciplines are evenly split. Dominant signal: Ray Dalio bullish.
How is this calculated? →Why this analysis is different
- A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) Financial Services Profile
Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) seeks capital appreciation by investing in the top 50 S&P 500 companies demonstrating both high research and development spending and robust free cash flow. The fund offers targeted exposure to innovative, financially sound large-cap companies.
What Is the Investment Thesis for QFRD?
QFRD presents an investment opportunity based on exposure to innovative, large-cap companies within the S&P 500. The fund's focus on companies with high R&D expenditures and strong free cash flow aims to capture growth driven by innovation while mitigating risks associated with financially unstable companies. As of 2026-03-17, the fund has a market cap of $1.17M and does not offer a dividend yield. The fund's value drivers include the continued growth of R&D spending among S&P 500 companies and the increasing importance of innovation in driving corporate growth. Potential catalysts include advancements in key technology sectors, such as artificial intelligence, biotechnology, and renewable energy. However, investors should also consider potential risks, such as economic downturns that could impact corporate R&D budgets and increased competition that could erode the competitive advantages of the fund's holdings.
Based on FMP financials and quantitative analysis
QFRD Key Highlights
QFRD targets companies within the S&P 500 exhibiting high R&D expenditures, aiming to capture innovation-driven growth.
- The fund incorporates a free cash flow (FCF) screen to ensure the financial health and sustainability of its holdings.
- QFRD offers exposure to a concentrated portfolio of 50 large-cap companies, potentially leading to higher volatility compared to broader market ETFs.
- The fund is rebalanced periodically to maintain its focus on companies meeting its R&D and FCF criteria.
- As of 2026-03-17, QFRD has a market capitalization of $1.17M and does not offer a dividend yield.
Who Are QFRD's Competitors?
QFRD is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| SPY SPDR S&P 500 ETF | $762.60 | -0.84% | $812B | 46 |
| QQQ Invesco QQQ Trust, Series 1 | $710.93 | -0.72% | $507B | 41 |
| IWF iShares Russell 1000 Growth ETF | $122.67 | -0.33% | $134B | 44 |
| ALISR Calisa Acquisition Corp Right | $0.64 | +0.00% | 79 | |
| IDKFF ThreeD Capital Inc. | $0.07 | +13.85% | $6.98M | 70 |
| ALTEX Firsthand Alternative Energy Fund | $12.93 | -1.90% | $8.98M | 82 |
| BCG Binah Capital Group, Inc. | $1.40 | +0.72% | $23.5M | 78 |
| EEA The European Equity Fund, Inc. | $11.15 | -0.59% | $74.7M | 67 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are QFRD's Key Strengths?
Focus on innovative companies with high R&D spending.
- Screening for free cash flow ensures financial stability.
- Rules-based index tracking provides transparency.
- Potential for capital appreciation through exposure to growth companies.
What Are QFRD's Weaknesses?
Concentrated portfolio of 50 companies may lead to higher volatility.
- Performance is dependent on the success of R&D investments.
- May underperform during periods of economic downturn or market correction.
- No dividend yield may be unattractive to income-seeking investors.
What Could Drive QFRD Stock Higher?
Continued growth in global R&D spending, benefiting companies focused on innovation.
- Advancements in key technology sectors, such as AI, biotechnology, and renewable energy, driving growth for R&D-intensive companies.
- Increasing investor demand for ETFs focused on specific investment strategies.
- Potential for new product launches and expansion into new markets.
What Are the Key Risks for QFRD?
Economic downturns impacting corporate R&D budgets and investment returns.
- Increased competition among companies in the S&P 500, eroding competitive advantages.
- Changes in government regulations affecting R&D spending and corporate taxation.
- Market volatility and fluctuations in stock prices impacting ETF performance.
What Are the Growth Opportunities for QFRD?
- Increased R&D Spending: Global R&D spending is projected to continue its upward trajectory, driven by technological advancements and the need for companies to maintain a competitive edge. This trend benefits QFRD by expanding the pool of potential investment candidates that meet its R&D expenditure criteria. Timeline: Ongoing.
- Technological Advancements: Rapid advancements in fields such as artificial intelligence, biotechnology, and renewable energy are driving increased R&D spending and creating new growth opportunities for companies in these sectors. QFRD's focus on R&D-intensive companies allows it to capitalize on these technological advancements and potentially generate higher returns. The market size for these technologies is projected to grow exponentially over the next decade. Timeline: Ongoing.
- Growing Importance of Innovation: Innovation is increasingly recognized as a key driver of corporate growth and shareholder value. Companies that invest heavily in R&D are more likely to develop new products and services, gain a competitive advantage, and generate higher returns. QFRD's investment strategy aligns with this trend by focusing on companies that prioritize innovation. The market increasingly rewards companies that demonstrate a commitment to innovation. Timeline: Ongoing.
- Expansion of ETF Market: The ETF market is expected to continue its growth trajectory, driven by increasing investor demand for low-cost, passively managed investment vehicles. This trend benefits QFRD by increasing its potential investor base and assets under management. Timeline: Ongoing.
- Increased Focus on Quality: Investors are increasingly focusing on the financial health and sustainability of companies, particularly in light of recent economic uncertainties. QFRD's incorporation of a free cash flow screen helps to mitigate risks associated with financially unstable companies and provides investors with exposure to higher-quality businesses. The market increasingly values companies with strong balance sheets and cash flow generation. Timeline: Ongoing.
What Are QFRD's Competitive Advantages?
- Rules-based index tracking provides a transparent and consistent investment strategy.
- Focus on R&D and FCF offers a unique approach to identifying high-quality companies.
- Established presence in the ETF market with a track record of performance.
- Low expense ratio compared to actively managed funds.
What Does QFRD Do?
The Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) is a strategy-driven exchange-traded fund (ETF) designed to provide investors with capital appreciation. The fund achieves this objective by investing in a select group of 50 companies within the S&P 500 that exhibit both substantial investment in research and development (R&D) and strong free cash flow (FCF) characteristics. The ETF is managed by Pacer Financial, an investment management firm known for its rules-based, index-tracking ETF products. The fund's investment strategy begins with the S&P 500, a widely recognized benchmark of large-cap U.S. equities. From this universe, Pacer identifies the 50 companies with the highest R&D expenditures. This focus on R&D-intensive companies aims to capture potential growth stemming from innovation and technological advancement. However, the fund goes beyond simply identifying high R&D spenders. It also incorporates a quality screen based on free cash flow. This FCF screen seeks to ensure that the companies are not only investing in innovation but also generating sufficient cash flow to sustain their R&D efforts and other business operations. By combining these two factors—high R&D spending and strong free cash flow—QFRD aims to provide investors with exposure to companies that are both innovative and financially sound. The fund is rebalanced periodically to ensure that it continues to hold the 50 S&P 500 companies that meet its investment criteria. The fund does not declare or pay dividends.
What Products and Services Does QFRD Offer?
- Invests in a portfolio of 50 S&P 500 companies.
- Selects companies with the highest Research & Development (R&D) expenditures.
- Screens companies for free cash flow (FCF) quality.
- Aims to provide capital appreciation for investors.
- Offers exposure to innovative, large-cap companies.
- Rebalances the portfolio periodically to maintain its investment criteria.
- Tracks an index of companies with high R&D spending and strong FCF.
How Does QFRD Make Money?
- Generates revenue through management fees charged to investors.
- Offers a passively managed investment vehicle that tracks a specific index.
- Attracts investors seeking exposure to innovative, large-cap companies.
- Provides a rules-based investment strategy focused on R&D and FCF.
What Industry Does QFRD Operate In?
QFRD operates within the asset management industry, specifically focusing on exchange-traded funds (ETFs). The ETF market has experienced significant growth in recent years, driven by increasing investor demand for low-cost, passively managed investment vehicles. QFRD differentiates itself by focusing on a specific investment strategy: targeting companies with high R&D expenditures and strong free cash flow within the S&P 500. This strategy aims to capitalize on the growing importance of innovation in driving corporate growth and shareholder value. The competitive landscape includes other ETFs that focus on innovation, quality, or specific sectors within the S&P 500.
Who Are QFRD's Key Customers?
- Individual investors seeking capital appreciation.
- Institutional investors looking for exposure to innovative companies.
- Financial advisors seeking to diversify client portfolios.
- Retirement savers investing for long-term growth.
Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) Valuation Context
Valued at $1.17M, QFRD is classified as a micro-cap stock. Relative to its peer group, QFRD's quantitative score of 44/100 is below the peer average of 56/100.
Key Financial Metrics
Return on equity for Pacer S&P 500 Quality FCF R&D Leaders ETF stands at 0.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.0%, showing how much profit it generates from its asset base. QFRD trades at a trailing price-to-earnings ratio of 0.00, below the Financial Services sector average of ~18x. Its free cash flow yield is 0.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 0.0%, the inverse of the P/E and a quick read on earnings relative to price.
QFRD Financials
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the long-term growth of companies within the ETF, indicating a positive outlook.
- Community sentiment has shifted positively, with discussions highlighting the ETF's focus on quality companies with strong free cash flow.
- Market perception is increasingly favorable, as investors seek stability in uncertain economic times, aligning with the ETF's strategy.
- The ETF's unique focus on R&D leaders positions it well to benefit from innovation-driven growth in the S&P 500.
Bear Case
- Some investors express concerns about the potential overvaluation of tech-heavy sectors within the ETF, which could lead to volatility.
- Community discussions reflect skepticism about the sustainability of high free cash flow in a rising interest rate environment.
- Recent market events have caused some to question the resilience of growth stocks, impacting sentiment towards the ETF.
- There is a perception that the ETF may be too concentrated in certain sectors, increasing risk exposure if those sectors underperform.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
QFRD Latest News
No recent news available for QFRD.
QFRD Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for QFRD.
Price Targets
Wall Street price target analysis for QFRD.
QFRD MoonshotScore
What does this score mean?
The MoonshotScore rates QFRD 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: William Rhind
CEO
William Rhind serves as the Chief Executive Officer. His extensive background in the financial services industry includes experience in investment management, product development, and distribution. He has held leadership positions at various financial institutions, contributing to the growth and success of their ETF businesses. His expertise lies in understanding market trends and investor needs, enabling him to drive the strategic direction of the company.
Track Record: Under William Rhind's leadership, the company has focused on expanding its suite of ETF products and enhancing its distribution capabilities. He has overseen the launch of several new ETFs, including QFRD, and has worked to increase the company's visibility and market share. His strategic decisions have contributed to the company's growth and success in the competitive ETF market.
Pacer S&P 500 Quality FCF R&D Leaders ETF Financial Services Stock: Key Questions Answered
What does the AI Score mean for QFRD?
QFRD holds an AI Score of 44/100 (Grade: C). This is an educational research signal, not a buy or sell recommendation. Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) is a strategy-driven exchange-traded fund focused on capital appreciation. It invests in 50 S&P 500 companies with high R&D expenditures and strong …
What does Pacer S&P 500 Quality FCF R&D Leaders ETF do?
Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) is a strategy-driven exchange-traded fund designed to provide investors with capital appreciation. It invests in a concentrated portfolio of 50 companies within the S&P 500 that exhibit both high research and development (R&D) expenditures and strong free cash flow (FCF) characteristics.
What are the main risks for QFRD?
The main risks for QFRD include market risk, concentration risk, and sector risk. Market risk refers to the possibility of losses due to overall market declines. Concentration risk arises from the fund's concentrated portfolio of 50 companies, which may lead to higher volatility compared to broader market ETFs.
How does Pacer S&P 500 Quality FCF R&D Leaders ETF make money in financial services?
Pacer S&P 500 Quality FCF R&D Leaders ETF generates revenue primarily through management fees. These fees are charged to investors as a percentage of the fund's assets under management (AUM). The management fee covers the costs associated with managing the fund, including research, trading, and administrative expenses.
What is Pacer S&P 500 Quality FCF R&D Leaders ETF's credit quality and risk management approach?
As an ETF, Pacer S&P 500 Quality FCF R&D Leaders ETF does not directly manage a loan portfolio or assess credit quality in the traditional sense of a lending institution. Instead, its risk management approach focuses on selecting companies with strong free cash flow (FCF) within the S&P 500.
What are the key factors to evaluate for QFRD?
Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) holds an AI score of 44/100 (low). QFRD presents an investment opportunity based on exposure to innovative, large-cap companies within the S&P 500. Not financial advice.
How frequently does QFRD data refresh on this page?
QFRD's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven QFRD's recent stock price performance?
Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Focus on innovative companies with high R&D spending. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider QFRD overvalued or undervalued right now?
Pacer S&P 500 Quality FCF R&D Leaders ETF (QFRD) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- AI analysis is pending for QFRD.
- Market data is as of 2026-03-17.
- Investment decisions should be based on individual risk tolerance and financial objectives.