Pacer US Export Leaders ETF (PEXL)

Overview

The Pacer US Export Leaders ETF (PEXL) aims to provide investors with exposure to US companies that derive a significant portion of their revenue from exports. The ETF focuses on large-cap US companies poised to benefit from global economic growth. The fund uses a rules-based methodology to select and weight companies based on their export revenue.

Reputation and Reliability

Pacer ETFs is a known issuer with a focus on rules-based, index-tracking ETFs. They are generally considered reliable.

Management Expertise

Pacer ETFs has a team of experienced professionals dedicated to index design and ETF management.

Goal

The investment objective of the Pacer US Export Leaders ETF is to provide investment results that closely correspond, before fees and expenses, to the performance of the Pacer US Export Leaders Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Pacer US Export Leaders Index, a rules-based index that selects and weights US companies based on their export revenue.

Composition The ETF primarily holds stocks of large-cap US companies with significant export revenue. The composition is diversified across various sectors, excluding certain sectors like Real Estate.

Market Share: The ETF's market share within the export-focused equity ETF space is moderate.

Total Net Assets (AUM): 175000000

Key Competitors

• SPDR S&P 500 ETF Trust (SPY)
• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)

Competitive Landscape

The ETF market is highly competitive, with numerous broad market and sector-specific ETFs available. PEXL's advantage lies in its unique focus on export-oriented companies, providing targeted exposure. However, it faces competition from broader market ETFs and other international equity ETFs. PEXL also has a smaller AUM compared to the S&P 500 index tracking ETFs, but its focused strategy caters to investors seeking export-driven growth.

Historical Performance: Past performance is not indicative of future results. Investors should consult the fund's factsheet for detailed historical performance data.

Benchmark Comparison: The ETF's performance should be compared to the Pacer US Export Leaders Index to evaluate its tracking efficiency. A tracking error analysis is recommended.

Expense Ratio: 0.6

Average Trading Volume

PEXL's average daily trading volume is moderate, potentially affecting ease of entry and exit for large orders.

Bid-Ask Spread

The bid-ask spread for PEXL is usually tight, indicating reasonable liquidity.

Market Environment Factors

Global economic growth, trade policies, currency fluctuations, and geopolitical events can all significantly influence the performance of PEXL. Strong global demand boosts export revenues.

Growth Trajectory

The growth trajectory of PEXL is linked to the performance of the US export sector, which is influenced by global economic conditions and trade dynamics. The ETF's holdings and strategy has remained consistent since launch.

Competitive Edge

PEXL offers a distinct strategy focused on US companies deriving substantial revenue from exports, potentially benefiting from global economic expansion. Its rules-based index methodology provides transparency and reduces active management risk. This niche focus can attract investors seeking targeted exposure to the export sector. However, this also limits its breadth compared to broader market ETFs. The fund's AUM is still relatively small in comparison to more established ETFs.

Volatility

PEXL's volatility is generally comparable to that of the broader US equity market, though it may exhibit higher volatility during periods of trade uncertainty.

Market Risk

The ETF is subject to market risk, including fluctuations in equity prices. Specific risks include currency risk and trade policy risk due to its focus on export-oriented companies.

Ideal Investor Profile

The ideal investor for PEXL is someone seeking targeted exposure to US companies benefiting from global economic growth and international trade.

Market Risk

PEXL is suitable for long-term investors with a moderate risk tolerance who believe in the growth potential of the US export sector.

Pacer US Export Leaders ETF (PEXL) offers targeted exposure to US companies with significant export revenue, potentially benefiting from global economic growth. It follows a rules-based index, providing transparency, and its expense ratio is moderate. The ETF is suitable for investors seeking a specific strategy with a focus on export-oriented companies. However, investors should be aware of its relatively smaller AUM and the risks associated with international trade and currency fluctuations. Investors should perform their own due diligence prior to investing.

Data Sources:

• Pacer ETFs Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results.