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

Overview

The Pacer Lunt Large Cap Multi-Factor Alternator ETF (ALTL) seeks to provide capital appreciation by using an 'alternator' approach, shifting between different fundamental factors within the large-cap equity space based on economic signals.

Reputation and Reliability

Pacer ETFs is known for its rules-based, index-tracking ETFs, with a growing reputation for innovative thematic and factor-based products.

Management Expertise

Pacer ETFs employs experienced portfolio managers and investment professionals specializing in structured investment strategies and rules-based investing.

Goal

To provide capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a single static index. Instead, it uses a quantitative, rules-based approach to alternate between different fundamental factors within the large-cap equity universe (e.g., value, momentum, quality, size).

Composition Primarily invests in large-cap U.S. equities selected based on a rotating factor strategy. Holdings vary depending on which factor is deemed most favorable at a given time.

Market Share: Insufficient data available to accurately determine ALTL's exact market share.

Total Net Assets (AUM): 31989225

Key Competitors

• Invesco S&P 500 Pure Value ETF (RPV)
• Vanguard Value ETF (VTV)
• iShares Edge MSCI USA Quality Factor ETF (QUAL)
• Invesco S&P 500 Momentum ETF (SPMO)

Competitive Landscape

The ETF industry is highly competitive. ALTL differentiates itself through its dynamic factor rotation strategy, offering potential for outperformance relative to static factor ETFs. However, its active approach may lead to higher costs and the risk of mis-timing factor shifts, posing a disadvantage compared to passively managed competitors.

Historical Performance: Historical performance data needs to be sourced from financial data providers. Performance varies based on factor selection efficacy.

Benchmark Comparison: Performance should be compared against a blended benchmark reflecting the ETF's rotating factor exposures, which is difficult to replicate precisely.

Expense Ratio: 0.6

Average Trading Volume

ALTL's average trading volume is relatively modest, suggesting lower liquidity compared to more established large-cap ETFs.

Bid-Ask Spread

The bid-ask spread can fluctuate depending on trading volume and market conditions but tends to be wider than highly liquid ETFs.

Market Environment Factors

Economic indicators, interest rates, inflation expectations, and sector-specific trends influence the relative attractiveness of different factors and consequently, ALTL's performance.

Growth Trajectory

ALTL's growth trajectory depends on its ability to effectively rotate into favorable factors and investor demand for dynamic factor strategies.

Competitive Edge

ALTL's key advantage is its dynamic factor rotation, which aims to capitalize on changing economic conditions and factor performance. This differentiates it from static factor ETFs. The rules-based approach offers transparency and consistency. It is intended to avoid subjective decision-making. However, the success of the strategy hinges on the effectiveness of the factor rotation model.

Volatility

ALTL's volatility is expected to be similar to that of the large-cap equity market but may vary depending on factor exposures. The factor rotation strategy could lead to periods of higher or lower volatility relative to the broad market.

Market Risk

ALTL is subject to market risk associated with large-cap equities. The success depends on its ability to accurately predict factor performance. There is a risk that the factor rotation model may not perform as expected.

Ideal Investor Profile

Investors seeking capital appreciation with a moderate to high risk tolerance and understanding of factor-based investing.

Market Risk

Suitable for long-term investors who are comfortable with a dynamic, actively managed approach and potential underperformance relative to static index funds during certain periods.

The Pacer Lunt Large Cap Multi-Factor Alternator ETF (ALTL) is designed to provide capital appreciation through dynamic factor rotation within the large-cap equity market. It uses a rules-based strategy to shift between different fundamental factors based on economic signals. ALTL differentiates itself from static factor ETFs but its active approach carries higher expense ratio and the risk of mis-timing factor shifts. It is most suitable for investors seeking potentially higher returns through active factor management but with a moderate to high risk tolerance.

Data Sources:

• Pacer ETFs website
• Financial data providers (e.g., Bloomberg, Yahoo Finance)
• ETF.com

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 conditions can change rapidly, and investment decisions should be made after consulting with a qualified financial advisor.