Pacer Lunt MidCap Multi-Factor Alternator ETF (PAMC)

Overview

The Pacer Lunt MidCap Multi-Factor Alternator ETF (PAMD) is designed to provide exposure to mid-capitalization U.S. equities, employing a multi-factor investment strategy that dynamically adjusts its allocations based on market conditions. The ETF aims to achieve long-term capital appreciation by selecting stocks with attractive value, momentum, quality, and size characteristics. Its asset allocation primarily focuses on U.S. mid-cap stocks.

Reputation and Reliability

Pacer ETFs is known for its trend-following strategies and focus on income-generating ETFs. It is generally considered a reliable issuer with a growing presence in the ETF market.

Management Expertise

Pacer ETFs has a team of investment professionals with experience in quantitative investing and ETF management. Their expertise lies in developing and managing rules-based investment strategies.

Goal

The primary investment goal of PAMD is to seek long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index, but rather uses a quantitative, multi-factor approach to select and weight its holdings. It dynamically adjusts its factor exposure based on market signals.

Composition The ETF primarily holds U.S. mid-cap stocks selected based on factors such as value, momentum, quality, and size.

Market Share: PAMD's market share within the multi-factor mid-cap ETF segment is relatively small, indicating room for growth but also significant competition.

Total Net Assets (AUM): 91950000

Key Competitors

• Avantis U.S. Mid Cap Value ETF (AVMV)
• Dimensional U.S. Core Equity 2 ETF (DFAC)
• Vanguard Mid-Cap Value ETF (VOE)

Competitive Landscape

The multi-factor mid-cap ETF space is competitive, with larger, more established funds like AVMV, DFAC and VOE dominating market share. PAMD's advantage lies in its dynamic factor allocation, which aims to outperform static factor strategies. A disadvantage is its relatively smaller AUM, which can impact liquidity and visibility.

Historical Performance: Historical performance data needs to be gathered from financial data sources such as Morningstar and etf.com to review the ETF's performance.

Benchmark Comparison: The performance needs to be compared to a relevant mid-cap benchmark, such as the Russell Midcap Index, to evaluate its effectiveness.

Expense Ratio: 0.75

Average Trading Volume

PAMD's average trading volume is moderate, which may impact the ease of buying or selling large quantities of shares.

Bid-Ask Spread

The bid-ask spread is also moderate and dependent on market conditions, reflecting the cost of trading.

Market Environment Factors

Economic growth, interest rate changes, and overall market sentiment influence PAMD's performance. Sector-specific trends within the mid-cap market also play a role.

Growth Trajectory

PAMD's growth trajectory depends on its ability to attract assets through strong performance and effective marketing of its dynamic factor allocation strategy. Changes to the factor weighting model could impact its future holdings.

Competitive Edge

PAMD's competitive edge comes from its dynamic, multi-factor investment approach, which adapts to changing market conditions. This adaptability aims to capture opportunities and mitigate risks more effectively than static factor-based ETFs. The ETF's rules-based approach reduces reliance on subjective manager decisions. However, the effectiveness of this strategy depends on the accuracy of the underlying market signals and the model's ability to interpret them correctly.

Volatility

Historical volatility data needs to be assessed to determine PAMD's risk profile and how it compares to other mid-cap ETFs.

Market Risk

PAMD is subject to market risk, particularly risks associated with mid-cap stocks, such as lower liquidity and greater sensitivity to economic downturns. The ETF's factor exposures (value, momentum, quality, size) can also contribute to volatility depending on the prevailing market environment.

Ideal Investor Profile

The ideal investor for PAMD is someone seeking long-term capital appreciation through exposure to mid-cap equities with a dynamic, multi-factor investment strategy.

Market Risk

PAMD is suitable for investors who are comfortable with moderate to high risk and have a long-term investment horizon. It may appeal to investors who prefer a quantitative, rules-based approach to factor investing.

PAMD is a multi-factor mid-cap ETF that seeks long-term capital appreciation by dynamically adjusting its factor exposures based on market conditions. Its competitive edge lies in its adaptive strategy, which aims to outperform static factor-based approaches. However, it faces competition from larger, more established ETFs in the space. Investors should consider its risk profile, expense ratio, and liquidity before investing.

Data Sources:

• Pacer ETFs Website
• Morningstar
• 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. Investment decisions should be based on individual circumstances and consultation with a financial advisor.