Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC)

Overview

The Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) aims to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Lunt Capital U.S. Large-Cap Equity Rotation Index. It rotates between two sub-indexes based on relative momentum and volatility, focusing on large-cap U.S. equities.

Reputation and Reliability

Pacer ETFs has a solid reputation for innovative index-based strategies. They are generally considered reliable and have a good track record in managing various ETFs.

Management Expertise

The management team has experience in developing and managing factor-based and rules-based investment strategies.

Goal

To provide investment results that generally correspond to the price and yield performance, before fees and expenses, of the Lunt Capital U.S. Large-Cap Equity Rotation Index.

Investment Approach and Strategy

Strategy: The ETF tracks an index designed to alternate between two sub-indexes of U.S. large-cap equities based on momentum and volatility factors.

Composition Primarily holds U.S. large-cap stocks. The portfolio composition changes based on the rules of the underlying index.

Market Share: PALC's market share is relatively small compared to broader large-cap ETFs.

Total Net Assets (AUM): 62840000

Key Competitors

• Invesco S&P 500 Equal Weight ETF (RSP)
• Schwab Fundamental U.S. Large Company Index ETF (FNDX)
• Vanguard Value ETF (VTV)

Competitive Landscape

The large-cap ETF market is highly competitive, with many established players. PALC's factor-based rotation strategy differentiates it, but it competes with broader index-tracking and factor-focused ETFs. Advantages include its dynamic allocation based on market conditions, while disadvantages include potential tracking error and higher expense ratio compared to passive ETFs.

Historical Performance: Historical performance data is needed for this section. Without the data, I cannot perform the calculation.

Benchmark Comparison: Benchmark data is needed for this section. Without the data, I cannot perform the calculation.

Expense Ratio: 0.6

Average Trading Volume

The average trading volume for PALC is moderate and can vary based on market conditions.

Bid-Ask Spread

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

Market Environment Factors

Economic indicators, interest rates, market volatility, and investor sentiment can all affect PALC's performance. Its factor-based approach may perform well in specific market regimes.

Growth Trajectory

The growth trajectory depends on the adoption of factor-based investing and the fund's ability to deliver consistent returns relative to its benchmark. Changes may include adjustments to the underlying index methodology or holdings.

Competitive Edge

PALC's competitive edge lies in its dynamic rotation strategy, which seeks to capitalize on changing market conditions by allocating between different sub-indexes based on momentum and volatility. This approach aims to provide potentially better risk-adjusted returns compared to static factor-based ETFs. However, the success of this strategy depends on the effectiveness of the underlying index rules. The ETF's ability to adapt to different market environments could attract investors seeking tactical exposure to large-cap equities.

Volatility

PALC's volatility will vary depending on the market conditions and the underlying holdings. The rotation strategy is designed to manage volatility, but there is no guarantee of success.

Market Risk

PALC is subject to market risk, including the risk of declines in the overall stock market. Specific risks include the potential for the factor-based strategy to underperform and tracking error relative to the underlying index.

Ideal Investor Profile

The ideal investor is someone who understands factor-based investing and is looking for a tactical approach to large-cap equity exposure. They should be comfortable with the potential for higher volatility than traditional index funds and have a medium to long-term investment horizon.

Market Risk

PALC is suitable for investors who are seeking to enhance returns or manage risk through a dynamic factor-based approach and are not solely focused on passive index tracking.

The Pacer Lunt Large Cap Multi-Factor Alternator ETF offers a dynamic approach to investing in U.S. large-cap equities. Its rotation strategy, based on momentum and volatility factors, seeks to adapt to changing market conditions. However, this strategy may not always outperform and involves inherent risks. PALC is suitable for investors seeking a tactical factor-based approach with a medium to long-term investment horizon and an understanding of its unique strategy and risks. Investors should carefully consider the ETF's expense ratio and potential for tracking error relative to its benchmark.

Data Sources:

• Pacer ETFs Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market share data is estimated and may not be precise.