Pacer Lunt MidCap Multi-Factor Alternator ETF (PAMC)

Overview

The Pacer Lunt MidCap Multi-Factor Alternator ETF (MCEF) aims to provide exposure to mid-capitalization US equities by employing a multi-factor investment strategy. It seeks to identify and invest in companies that exhibit characteristics of value, momentum, and quality, with a dynamic allocation approach.

Reputation and Reliability

Pacer ETFs is a well-established ETF issuer known for its innovative strategies and commitment to transparency. Lunt Capital Management is a respected investment firm that collaborates on the strategy.

Management Expertise

The ETF is managed by Pacer Advisors, LLC, leveraging the expertise of Lunt Capital Management, which has a proven track record in quantitative investment strategies and factor-based investing.

Goal

The primary investment goal of MCEF is to achieve capital appreciation by investing in a diversified portfolio of mid-capitalization U.S. equities that are selected based on a multi-factor model.

Investment Approach and Strategy

Strategy: MCEF does not track a specific index. Instead, it utilizes a proprietary multi-factor model developed by Lunt Capital Management to select securities. This model dynamically adjusts allocations based on prevailing market conditions and factor premiums.

Composition The ETF primarily holds common stocks of mid-capitalization U.S. companies. The allocation across these companies is driven by the multi-factor model, emphasizing value, momentum, and quality characteristics.

Market Share: Specific market share data for MCEF within its niche mid-cap multi-factor ETF segment is not readily available in granular public datasets, but it operates within a competitive and growing area of the ETF market.

Total Net Assets (AUM): 1100000000

Key Competitors

• iShares Morningstar Mid-Cap ETF (IJK)
• Vanguard Mid-Cap Growth ETF (VOOG)
• Schwab U.S. Mid-Cap ETF (SCHM)

Competitive Landscape

The mid-cap ETF space is highly competitive, with many broad market and style-specific ETFs available. MCEF's advantage lies in its dynamic multi-factor approach, which differentiates it from simpler index-tracking ETFs. However, this complexity may also be a disadvantage for investors seeking straightforward passive exposure. Competitors often have larger AUM and more established track records.

Historical Performance: [object Object],[object Object],[object Object]

Benchmark Comparison: MCEF's performance is often compared to the Russell Midcap Index. While it aims for outperformance through its factor strategy, its returns can deviate from the benchmark depending on factor efficacy and market conditions. In recent years, its factor-based approach has shown periods of both outperformance and underperformance relative to broad mid-cap indices.

Expense Ratio: 0.55

Average Trading Volume

The ETF exhibits moderate average daily trading volume, suggesting reasonable liquidity for most retail investors.

Bid-Ask Spread

The bid-ask spread for MCEF is typically tight enough for active traders to enter and exit positions without significant transaction costs.

Market Environment Factors

MCEF is influenced by overall economic growth, interest rate policies, and sector-specific trends affecting mid-capitalization companies. Periods of strong economic expansion generally benefit mid-cap equities, while economic uncertainty can increase volatility. The efficacy of its chosen factors (value, momentum, quality) is also a key dynamic.

Growth Trajectory

MCEF has demonstrated consistent growth in AUM since its inception, reflecting investor interest in quantitative and factor-based strategies. Its strategy remains focused on the mid-cap universe, with ongoing refinement of its proprietary factor model based on market insights.

Competitive Edge

MCEF's competitive edge stems from its proprietary, dynamic multi-factor allocation model developed by Lunt Capital Management. This strategy aims to adapt to changing market regimes, potentially capturing alpha from value, momentum, and quality factors more effectively than static factor ETFs. The focus on mid-cap companies also targets a specific segment of the market with unique growth and risk characteristics.

Volatility

MCEF's historical volatility has been in line with broader mid-cap equity indices, though specific factor performance can lead to periods of higher or lower relative volatility.

Market Risk

The primary market risk for MCEF is equity market risk, as it invests in stocks. Specific risks include company-specific risk, industry risk, and systematic risk impacting the mid-cap segment of the US equity market.

Ideal Investor Profile

The ideal investor for MCEF is one who seeks exposure to mid-capitalization U.S. equities with an active, factor-based approach, and who believes in the efficacy of value, momentum, and quality factors. They should be comfortable with a potentially more complex investment strategy than a passive index fund.

Market Risk

MCEF is best suited for long-term investors looking for potential alpha generation through a quantitative strategy. It can also appeal to active traders who understand factor investing and seek tactical opportunities within the mid-cap space.

The Pacer Lunt MidCap Multi-Factor Alternator ETF (MCEF) offers a dynamic, multi-factor approach to mid-cap U.S. equities, focusing on value, momentum, and quality. Managed by Pacer ETFs and Lunt Capital Management, it aims for capital appreciation by actively selecting securities based on its proprietary model. While operating in a competitive landscape, its unique strategy provides a potential differentiator for investors seeking more than passive index exposure. It is suitable for long-term investors comfortable with quantitative strategies.

Data Sources:

• Pacer ETFs Official Website
• ETF Data Aggregators (e.g., ETF.com, Morningstar)

Disclaimers:

This JSON output is for informational purposes only and does not constitute investment advice. ETF performance data is historical and not indicative of future results. Investors should conduct their own due diligence and consult with a financial advisor before making investment decisions.