Pacer Lunt Large Cap Alternator ETF (ALTL)

Overview

The Pacer Lunt Large Cap Alternator ETF (ALTL) aims to provide capital appreciation by systematically rotating between two Pacer ETFs: one focused on price momentum (Pacer Trendpilot US Large Cap ETF, PTLC) and another focused on value (Pacer US Cash Cows 100 ETF, COWZ). The strategy seeks to capitalize on market trends while mitigating downside risk.

Reputation and Reliability

Pacer ETFs is known for its rules-based, index-tracking ETFs. They have a solid track record for providing transparent and well-managed investment products.

Management Expertise

Pacer ETFs employs a team of experienced investment professionals focused on developing and managing innovative ETF strategies.

Goal

To provide capital appreciation through a systematic rotation strategy.

Investment Approach and Strategy

Strategy: The ETF employs a rules-based methodology, alternating between momentum and value-focused ETFs based on market conditions.

Composition The ETF's composition is dynamically adjusted between PTLC (momentum) and COWZ (value) ETFs, both of which hold large-cap U.S. equities.

Market Share: Insufficient data available to accurately determine ALTL's specific market share.

Total Net Assets (AUM): 56470500

Key Competitors

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

Competitive Landscape

The competitive landscape is dominated by broad market index ETFs like IVV, VOO, and SPY. ALTL offers a unique, active rotation strategy, distinguishing it from passive index trackers. Advantages include potentially outperforming during specific market cycles, while disadvantages include higher expense ratio and potential underperformance compared to passive strategies in consistently trending markets.

Historical Performance: Historical performance data can be obtained from official fund resources, financial news websites, or investment platforms to review the ETFu2019s performance over different time periods to understand its track record.

Benchmark Comparison: The ETF's performance should be compared to a benchmark that reflects a blended strategy of momentum and value investing, or a general large-cap equity index.

Expense Ratio: 0.75

Average Trading Volume

ALTL's average trading volume suggests moderate liquidity, with an average daily volume of around 25,000 shares.

Bid-Ask Spread

The bid-ask spread for ALTL is typically moderate, usually a few cents, reflecting reasonable trading efficiency.

Market Environment Factors

Economic indicators, interest rate changes, and the relative performance of value versus growth stocks can significantly influence ALTL's performance. Overall market volatility also affects the fund.

Growth Trajectory

The fund's growth is dependent on its ability to effectively rotate between momentum and value ETFs, which is tied to its strategy and holdings. The strategy involves regularly adjusting between PTLC and COWZ.

Competitive Edge

ALTL's competitive edge lies in its active, rules-based rotation strategy between momentum and value factors, offering a dynamic approach compared to static factor-based ETFs. This rotation seeks to capitalize on market trends while mitigating risk. The fund's clear rules for switching between the underlying Pacer ETFs enhances transparency. This may appeal to investors seeking a tactical approach to large-cap equity investing.

Volatility

ALTL's volatility depends on the underlying ETFs (PTLC and COWZ) and the frequency of rotation. Historical volatility should be examined across various market conditions.

Market Risk

ALTL is exposed to general market risk associated with large-cap equities, as well as risks specific to momentum and value investing styles. The effectiveness of the rotation strategy also influences risk.

Ideal Investor Profile

The ideal investor for ALTL is one who seeks capital appreciation with a willingness to accept moderate risk and understands the dynamic nature of factor-based investing. They should be comfortable with a rules-based, active management approach.

Market Risk

ALTL is suitable for investors seeking tactical exposure to large-cap equities and those who believe in the potential of momentum and value rotation strategies. It's more suitable for active traders or those seeking active management rather than passive index followers.

The Pacer Lunt Large Cap Alternator ETF (ALTL) offers a dynamic approach to large-cap equity investing through a rules-based rotation strategy between momentum and value factors. It seeks to capitalize on market trends while mitigating downside risk. The fund's performance depends on the effectiveness of its rotation rules and the relative performance of momentum and value stocks. It is suitable for investors seeking a tactical approach and comfortable with moderate risk and active management. The fund is generally suitable for an investor seeking moderate risk and possible capital appreciation.

Data Sources:

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

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. Consult with a qualified financial advisor before making any investment decisions.