Pacer Lunt Large Cap Alternator ETF (ALTL)

Overview

The Pacer Lunt Large Cap Alternator ETF (ALTL) seeks to provide capital appreciation by alternating between large-cap growth and value stocks based on relative strength. Its strategy aims to capture potential outperformance by shifting exposure based on market trends.

Reputation and Reliability

Pacer ETFs is known for its rules-based, index-tracking strategies. They have a solid reputation for innovation and transparency.

Management Expertise

The management team at Pacer ETFs has extensive experience in developing and managing quantitative investment strategies.

Goal

To seek capital appreciation by systematically alternating between large-cap growth and value stocks.

Investment Approach and Strategy

Strategy: The ETF does not track a single static index but uses a proprietary methodology to switch between the Lunt Capital U.S. Large Cap Growth Index and the Lunt Capital U.S. Large Cap Value Index.

Composition The ETF's holdings consist of U.S. large-cap growth and value stocks, with the allocation determined by a relative strength indicator.

Market Share: ALTL has a relatively small market share within the broader smart beta ETF category.

Total Net Assets (AUM): 8210000

Key Competitors

• Schwab US Dividend Equity ETF (SCHD)
• Vanguard Value ETF (VTV)
• Vanguard Growth ETF (VUG)
• iShares Russell 1000 Value ETF (IWD)
• iShares Russell 1000 Growth ETF (IWF)

Competitive Landscape

The ETF market is highly competitive. ALTL differentiates itself through its alternating growth/value strategy. Advantages include the potential to outperform in varying market conditions; disadvantages include the complexity of the strategy compared to simpler growth or value ETFs and potential for whipsaw effects.

Historical Performance: Historical performance data is required from financial resources and changes over time, the json doesn't provide real time historical performance. To provide meaningful data, the data should be dynamic.

Benchmark Comparison: Benchmark comparison requires real-time market data, the json does not provide current or up to date data. To provide meaningful data, the data should be dynamic.

Expense Ratio: 0.75

Average Trading Volume

The average trading volume for ALTL is moderate, which could impact the ease of entering and exiting positions, however, it depends on the date.

Bid-Ask Spread

The bid-ask spread for ALTL is typically moderate, representing the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept, however, it depends on the date.

Market Environment Factors

Economic indicators, interest rates, and investor sentiment regarding growth vs. value stocks all affect ALTL. Sector growth prospects and the overall market environment influence the performance of its underlying holdings.

Growth Trajectory

The growth trajectory of ALTL depends on the effectiveness of its alternating strategy. Changes in strategy would be reflected in its index methodology and holdings rebalancing.

Competitive Edge

ALTL's competitive edge lies in its dynamic allocation between growth and value stocks, which aims to outperform static allocations. This strategy is driven by a rules-based methodology, potentially reducing emotional biases. The ETF offers a distinct approach compared to traditional growth or value ETFs, appealing to investors seeking tactical exposure. This active management style within a passive structure is a key differentiator.

Volatility

ALTL's volatility is influenced by market fluctuations and the frequency of allocation changes between growth and value. It is moderate, reflecting its diversified exposure to large-cap stocks.

Market Risk

ALTL is exposed to market risk inherent in equity investments. Specific risks include sector-specific downturns and the potential for the alternating strategy to underperform in prolonged trends.

Ideal Investor Profile

The ideal investor for ALTL is one seeking capital appreciation with a moderate risk tolerance. Investors who understand and believe in the potential of alternating between growth and value strategies are well-suited.

Market Risk

ALTL is suitable for long-term investors seeking growth and diversification with a tactical approach. It's not ideal for active traders seeking short-term gains due to the relatively low trading volume.

The Pacer Lunt Large Cap Alternator ETF (ALTL) provides a unique approach to large-cap investing by systematically alternating between growth and value stocks based on relative strength. This strategy aims to capture outperformance in varying market conditions. It is a moderately risky investment suitable for long-term investors seeking capital appreciation through a tactical approach. Although it possesses a unique, rule-based methodology, its historical performance and AUM relative to similar ETFs suggest further evaluation is warranted.

Data Sources:

• Pacer ETFs Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Data is based on available information and may be subject to change.