Pacer Pacific Asset Floating Rate High Income ETF (FLRT)

Overview

The Pacer Pacific Asset Floating Rate High Income ETF (PFRA) seeks to provide current income consistent with the maintenance of liquidity. The ETF invests primarily in floating rate debt instruments, aiming for high income while mitigating interest rate risk. It allocates its assets across various floating rate securities. The investment strategy focuses on identifying and selecting floating rate securities with attractive yields.

Reputation and Reliability

Pacer ETFs are known for their rules-based, index-tracking strategies. They generally have a solid reputation for providing transparent and focused investment solutions.

Management Expertise

Pacer Financial has a dedicated team of investment professionals experienced in managing ETFs and fixed income portfolios.

Goal

To provide current income consistent with the maintenance of liquidity by investing in floating rate debt instruments.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. It employs a proprietary methodology to select and weight floating rate securities.

Composition The ETF primarily holds floating rate debt securities, including corporate loans, senior loans, and other floating rate instruments.

Market Share: The ETF's market share within the floating rate note ETF sector is relatively small compared to larger, more established funds.

Total Net Assets (AUM): 101380131

Key Competitors

• Invesco Senior Loan ETF (BKLN)
• SPDR Blackstone Senior Loan ETF (SRLN)
• First Trust Senior Floating Rate ETF (FNLK)

Competitive Landscape

The floating rate note ETF market is competitive, dominated by larger players like BKLN and SRLN. PFRA differentiates itself with its specific security selection methodology and focuses on high income, which may appeal to certain investors. A disadvantage could be lower liquidity compared to the bigger competitors.

Historical Performance: Historical performance data should be obtained from official sources like the Pacer ETFs website or reputable financial data providers. Numerical data unavailable. Review fund factsheet.

Benchmark Comparison: Comparison to relevant benchmarks would involve analyzing its returns against indices tracking floating rate loans or high-yield debt. Numerical data unavailable. Review fund factsheet.

Expense Ratio: 0.57

Average Trading Volume

The ETF exhibits moderate liquidity, with an average trading volume that facilitates reasonable entry and exit for most investors.

Bid-Ask Spread

The bid-ask spread is generally competitive, but can widen during periods of market volatility.

Market Environment Factors

Interest rate environments, credit spreads, and overall economic conditions significantly influence the performance of PFRA. Changes in monetary policy and the outlook for economic growth are key factors.

Growth Trajectory

The ETF's growth is dependent on its ability to attract assets through consistent performance and effective marketing. Its holdings may change depending on market conditions and opportunities

Competitive Edge

PFRA's competitive edge lies in its rules-based approach to selecting floating rate securities, aiming for high income potential. The ETF's focused strategy can offer investors targeted exposure to the asset class. It's designed to mitigate interest rate risk, a valuable characteristic in rising rate environments. Furthermore, the transparent methodology helps investors understand the portfolio's construction.

Volatility

The ETF's volatility is influenced by the credit quality of its underlying holdings and the overall market sentiment towards floating rate debt.

Market Risk

Specific risks include credit risk (the risk of issuers defaulting on their debt) and liquidity risk (the risk of difficulty in selling positions). Changes in interest rates can also indirectly affect the ETF.

Ideal Investor Profile

The ideal investor is one seeking current income and who is comfortable with the credit risks associated with floating rate debt. Investors seeking diversification within their fixed income portfolio may also find it suitable.

Market Risk

The ETF is suitable for long-term investors seeking income, but active traders may also find opportunities to capitalize on short-term price movements.

The Pacer Pacific Asset Floating Rate High Income ETF (PFRA) offers exposure to floating rate debt securities, aiming to provide current income while mitigating interest rate risk. Its strategy focuses on high income potential, making it attractive to income-seeking investors. The ETF's smaller size compared to competitors can result in lower liquidity. Investors should carefully consider the credit risks associated with the underlying securities and the overall economic environment before investing.

Data Sources:

• Pacer ETFs website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions and ETF performance can change over time. Consult with a qualified financial advisor before making any investment decisions.