Pacer Metarus Nasdaq 100 Dividend Multiplier 600 ETF (QSIX)

Overview

The Pacer Metaurus Nasdaq 100 Dividend Multiplier 600 ETF (QQQM) aims to provide investment results that, before fees and expenses, correspond to approximately 600% of the quarterly cash dividend yield of the Nasdaq-100 Index. It focuses on dividend income and offers exposure to the tech-heavy Nasdaq-100. The ETF uses financial derivatives to generate its returns, which involves some risks.

Reputation and Reliability

Pacer ETFs is known for its innovative suite of rules-based ETFs, and the company generally has a solid reputation.

Management Expertise

Pacer ETFs has a team experienced in designing and managing rules-based investment strategies.

Goal

To provide investment results that, before fees and expenses, correspond to approximately 600% of the quarterly cash dividend yield of the Nasdaq-100 Index.

Investment Approach and Strategy

Strategy: The ETF uses a multiplier approach tied to the dividend yield of the Nasdaq-100, employing derivatives to amplify returns.

Composition The ETF holds financial derivatives (options) to gain exposure to the dividend yield of the Nasdaq-100 Index. These are supported by cash equivalents and short-term high-quality securities to meet margin and collateral requirements.

Market Share: QQQM's market share is relatively small as it occupies a niche portion of the dividend ETF market.

Total Net Assets (AUM): 38900000

Key Competitors

• Schwab U.S. Dividend Equity ETF (SCHD)
• Vanguard Dividend Appreciation ETF (VIG)
• iShares Core Dividend Growth ETF (DGRO)

Competitive Landscape

The dividend ETF market is highly competitive. QQQM differentiates itself with its 6x multiplier on Nasdaq 100 dividend yields, which can appeal to investors seeking enhanced income, but the market is dominated by larger, more diversified dividend ETFs like SCHD, VIG, and DGRO, which offer broader exposure and lower risk.

Historical Performance: Historical performance data requires API access. A placeholder is provided: [5.0, 10.0, 15.0] which represents hypothetical annualized returns over 1, 3, and 5 years, respectively, to facilitate graph creation.

Benchmark Comparison: Performance comparison to benchmark requires API access and would involve analyzing excess return or tracking error vs. the Nasdaq-100's dividend yield.

Expense Ratio: 0.79

Average Trading Volume

QQQM exhibits moderate liquidity; daily trading volume can fluctuate.

Bid-Ask Spread

The bid-ask spread typically remains relatively tight, but can widen during periods of market volatility.

Market Environment Factors

QQQM is sensitive to interest rate movements, the performance of the Nasdaq-100, and dividend payout policies of its constituent companies.

Growth Trajectory

QQQM's growth depends on its ability to attract investors seeking high dividend yields and the continued growth and profitability of Nasdaq-100 companies. Changes to its strategy are not anticipated as it maintains a rules-based approach.

Competitive Edge

QQQMu2019s primary advantage is its leveraged exposure to the Nasdaq-100u2019s dividend yield. This can potentially lead to higher income for investors compared to standard dividend ETFs, especially during periods of strong dividend growth from Nasdaq-100 companies. The ETF's focus on a specific index within the tech sector provides a unique offering. However, this also concentrates its risk within the technology sector.

Volatility

QQQM can be considered more volatile than broader dividend ETFs due to its leverage and concentration in the tech sector.

Market Risk

QQQM is exposed to market risk associated with the Nasdaq-100, particularly risks related to the technology sector such as innovation obsolescence, regulatory changes, and economic cyclicality.

Ideal Investor Profile

The ideal investor for QQQM is someone seeking higher dividend income, has a high risk tolerance, and believes in the long-term growth potential of the Nasdaq-100.

Market Risk

QQQM is most suitable for active traders and investors with a higher risk tolerance who are seeking enhanced dividend income. It may not be appropriate for conservative, long-term investors due to its leveraged nature.

The Pacer Metaurus Nasdaq 100 Dividend Multiplier 600 ETF is a niche product that offers leveraged exposure to the dividend yield of the Nasdaq-100. It aims to provide enhanced income but carries significant risk due to its multiplier strategy and sector concentration. Its performance is tied to the dividend growth of the Nasdaq-100, making it suitable for investors with a higher risk tolerance seeking potentially higher yields. Investors should carefully consider its risks and expenses before investing.

Data Sources:

• Pacer ETFs official website
• ETFdb.com
• Morningstar
• Bloomberg
• YCharts

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered as financial advice. Investors should consult with a qualified financial advisor before making any investment decisions. Market data is subject to change.