Pacer Lunt Large Cap Alternator ETF (ALTL)

Overview

The Pacer Lunt Large Cap Alternator ETF (ALTL) seeks to provide capital appreciation by investing in a diversified portfolio of large-capitalization U.S. equity securities. It employs a quantitative strategy that aims to identify and invest in companies exhibiting strong fundamental characteristics and favorable market trends, with a focus on alternating between growth and value-oriented approaches.

Reputation and Reliability

Pacer ETFs is a growing ETF issuer known for its focus on thematic and factor-based ETFs. Lunt Capital Management provides the sub-advisory services, bringing expertise in quantitative investment strategies.

Management Expertise

Lunt Capital Management is a quantitative asset management firm with a long history of developing and implementing data-driven investment strategies. Their team comprises experienced portfolio managers and quantitative analysts.

Goal

The primary investment goal of the Pacer Lunt Large Cap Alternator ETF is to achieve long-term capital growth.

Investment Approach and Strategy

Strategy: ALTL does not track a specific index. Instead, it utilizes a proprietary quantitative methodology developed by Lunt Capital Management to dynamically select U.S. large-cap stocks. The strategy aims to capture upside potential while managing downside risk by alternating between growth and value investment styles based on market conditions.

Composition The ETF primarily holds U.S. large-capitalization equity securities. The specific composition will vary based on the quantitative model's signals, but it will generally include a diversified basket of stocks across various sectors.

Market Share: Information on specific market share for ALTL within its broad large-cap equity category is not readily available as it is a niche strategy. It competes within the large universe of US large-cap equity ETFs.

Total Net Assets (AUM): 100000000

Key Competitors

• Vanguard Total Stock Market ETF (VTI)
• iShares Core S&P 500 ETF (IVV)
• Schwab U.S. Large-Cap ETF (SCHX)

Competitive Landscape

The large-cap U.S. equity ETF market is highly competitive and dominated by broad market index ETFs with very low expense ratios. ALTL differentiates itself through its active quantitative strategy, aiming for alpha generation rather than pure index tracking. Its disadvantages include potentially higher fees compared to passive ETFs and the inherent risk associated with active management and quantitative models. Its advantage lies in its potential to outperform broader indices by dynamically adjusting its holdings based on proprietary signals.

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Benchmark Comparison: The ETF's performance is typically benchmarked against a broad large-cap equity index like the S&P 500. Analysis would require comparing ALTL's returns against this benchmark over various periods.

Expense Ratio: 0.55

Average Trading Volume

The ETF's average daily trading volume is moderate, indicating generally sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for ALTL is typically tight, reflecting good market maker participation and making it cost-effective to trade.

Market Environment Factors

ALTL is influenced by macroeconomic trends, interest rate policies, inflation, and overall equity market sentiment. Its performance is tied to the health of the U.S. economy and the performance of large-cap companies across various sectors. Sector rotation and the relative performance of growth versus value stocks are also significant factors.

Growth Trajectory

The ETF's growth trajectory depends on the successful execution of its quantitative strategy and its ability to adapt to changing market conditions. Changes in strategy and holdings are driven by the quantitative model's signals, reflecting the dynamic nature of its investment approach.

Competitive Edge

ALTL's competitive edge stems from its proprietary quantitative methodology, which seeks to identify undervalued or overvalued large-cap stocks and dynamically shift between growth and value investment styles. This approach, managed by Lunt Capital Management, aims to generate alpha through systematic, data-driven decision-making. The focus on alternating between styles can potentially offer downside protection during certain market regimes and capture opportunities in both growth and value environments.

Volatility

Historical volatility for ALTL is expected to be in line with broad large-cap equity ETFs, potentially with some variation due to its active management and style rotation.

Market Risk

The primary risks associated with ALTL are market risk (the risk that the overall stock market will decline), stock-specific risk (the risk of individual companies underperforming), and strategy risk (the risk that the quantitative model may not perform as expected or that the style rotation proves ineffective in certain market conditions.

Ideal Investor Profile

The ideal investor for ALTL is one seeking long-term capital appreciation from U.S. large-cap equities and who is comfortable with a quantitative, actively managed approach. Investors should understand that the ETF does not track an index and aims to outperform through its dynamic strategy.

Market Risk

This ETF is best suited for long-term investors who believe in the efficacy of quantitative strategies and style rotation to potentially enhance returns and manage risk. It is less suitable for investors seeking pure passive index exposure or those who prefer fundamental, discretionary stock selection.

The Pacer Lunt Large Cap Alternator ETF (ALTL) is an actively managed large-cap U.S. equity ETF employing a quantitative strategy. It aims for long-term capital appreciation by dynamically selecting stocks and alternating between growth and value styles based on proprietary signals. While competing in a crowded market, its unique methodology offers a potential differentiator for investors seeking alpha beyond broad index tracking. Investors should be aware of the strategy risks and fees associated with active quantitative management.

Data Sources:

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

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.