Pacer American Energy Independence ETF (USAI)

Overview

The Pacer American Energy Independence ETF (USOI) aims to provide investors with exposure to companies involved in the exploration, production, and transportation of oil and gas in the United States, focusing on energy independence.

Reputation and Reliability

Pacer ETFs is known for its innovative index-based strategies and has a solid reputation for reliability.

Management Expertise

Pacer ETFs has a team of experienced professionals dedicated to designing and managing its ETF offerings.

Goal

To provide investment results that, before fees and expenses, correspond generally to the total return performance of the American Energy Independence Index.

Investment Approach and Strategy

Strategy: The ETF tracks the American Energy Independence Index, which focuses on companies that contribute to US energy independence.

Composition The ETF primarily holds stocks of US-based companies involved in the energy sector, including exploration, production, and transportation.

Market Share: USOI's market share within the broader energy ETF landscape is relatively small compared to larger, more diversified funds.

Total Net Assets (AUM): 49820000

Key Competitors

• XLE
• VDE
• OIH
• ERX

Competitive Landscape

The energy ETF market is dominated by broad-based funds like XLE and VDE. USOI differentiates itself by focusing specifically on American energy independence. This targeted approach can be both an advantage (for investors seeking specific exposure) and a disadvantage (due to less diversification).

Historical Performance: Historical performance data is readily available, but should be reviewed considering that the energy sector is subject to high volatility.

Benchmark Comparison: The ETF's performance should be compared against the American Energy Independence Index and broad energy sector ETFs like XLE to assess its tracking efficiency.

Expense Ratio: 0.6

Average Trading Volume

The average trading volume for USOI is moderate, which may impact the ease of entering and exiting positions.

Bid-Ask Spread

The bid-ask spread for USOI can fluctuate based on market conditions, but is typically reasonable for an ETF of its size.

Market Environment Factors

Economic indicators, oil and gas prices, regulatory policies, and geopolitical events all influence USOI's performance.

Growth Trajectory

The growth trajectory of USOI is tied to the performance of the US energy sector and investor interest in energy independence strategies. Changes in holdings reflect the index's composition rules.

Competitive Edge

USOI's competitive edge lies in its unique focus on American energy independence, appealing to investors who want to support domestic energy production. Its index methodology targets companies directly involved in making the US more energy self-sufficient. It offers a more targeted approach than broader energy ETFs. This focused approach may resonate with investors who have specific views on energy policy or domestic energy production. However, it is important to note the higher expense ratio than competitors.

Volatility

USOI experiences high volatility due to its concentration in the energy sector, which is sensitive to commodity price fluctuations.

Market Risk

Market risk includes factors such as changes in oil and gas prices, geopolitical events, and government regulations that can negatively impact the energy sector.

Ideal Investor Profile

The ideal investor profile for USOI is someone who is bullish on the US energy sector and wants targeted exposure to companies involved in energy independence. They should have a higher risk tolerance.

Market Risk

USOI is best suited for active traders or investors with a specific thesis on US energy independence, rather than passive index followers seeking broad diversification.

The Pacer American Energy Independence ETF (USOI) offers targeted exposure to US energy companies focused on energy independence. Its performance is closely tied to the volatile energy sector, making it a higher-risk investment. USOI differentiates itself through its unique investment focus, appealing to investors with specific views on domestic energy production. While it may offer potential for targeted gains, investors should carefully consider its expense ratio and volatility before investing.

Data Sources:

• Pacer ETFs Website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market share data is approximate and may vary depending on the source and calculation method. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions.