Pacer Lunt Large Cap Alternator ETF (ALTL)

Overview

The Pacer Lunt Large Cap Alternator ETF (ALOT) is designed to provide exposure to large-capitalization U.S. equities. Its primary focus is to offer an actively managed approach to investing in companies that meet specific quantitative criteria, aiming for both capital appreciation and income generation through a diversified portfolio.

Reputation and Reliability

Pacer ETFs is a reputable issuer in the ETF space, known for its innovative and factor-based ETF offerings. They have a track record of developing ETFs with unique strategies designed to meet specific investor needs.

Management Expertise

The ETF is managed by Lunt Capital Management, Inc., an investment firm with a stated expertise in quantitative investment strategies. Their management team focuses on data-driven decision-making to select and manage the ETF's holdings.

Goal

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

Investment Approach and Strategy

Strategy: The ETF aims to outperform a broad large-cap index by employing an active management strategy. It does not track a specific index but rather invests in a curated portfolio of large-cap U.S. stocks selected based on proprietary quantitative models.

Composition The ETF primarily holds U.S. large-cap equities. The selection process is driven by quantitative factors, which may include metrics related to value, growth, momentum, and quality.

Market Share: Specific market share data for the Pacer Lunt Large Cap Alternator ETF (ALOT) within its broad large-cap equity ETF sector is not readily available or significant enough to constitute a dominant position.

Total Net Assets (AUM): 185617534

Key Competitors

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

Competitive Landscape

The large-cap U.S. equity ETF market is highly competitive, dominated by passive index-tracking ETFs from major providers. ALOT's actively managed, quantitatively driven approach differentiates it from passive giants, offering a potential advantage for investors seeking alpha. However, its smaller AUM and active management may lead to higher expense ratios and tracking differences compared to broad S&P 500 ETFs.

Historical Performance: 1-Year: 20.50%, 3-Year: 12.30%, 5-Year: 15.80% (Annualized as of recent reporting periods. Specific dates may vary. For detailed historical performance, refer to the ETF's official documentation.)

Benchmark Comparison: The Pacer Lunt Large Cap Alternator ETF aims to outperform the S&P 500 Index. Its performance relative to the benchmark will vary based on market conditions and the effectiveness of its quantitative selection model.

Expense Ratio: 0.6

Average Trading Volume

The ETF exhibits moderate liquidity with an average daily trading volume that allows for efficient execution of trades for most investors.

Bid-Ask Spread

The bid-ask spread for the Pacer Lunt Large Cap Alternator ETF is generally tight, indicating good intraday trading liquidity and minimal transaction costs for active participants.

Market Environment Factors

The ETF is influenced by macroeconomic trends, interest rate policies, inflation, and overall investor sentiment towards U.S. large-cap equities. Sector-specific performance within technology, healthcare, and financials, which often dominate large-cap indices, also plays a significant role.

Growth Trajectory

The ETF's growth trajectory depends on its ability to consistently generate alpha through its quantitative strategy and attract assets from investors seeking an alternative to passive large-cap exposure. Changes to its proprietary models or sector allocations could impact its future performance.

Competitive Edge

The Pacer Lunt Large Cap Alternator ETF's competitive edge lies in its proprietary quantitative investment methodology, aiming to identify undervalued or high-potential large-cap stocks. This active, data-driven approach seeks to provide a differentiated performance profile compared to passive index funds. Its focus on a carefully selected subset of large-cap companies allows for targeted exposure and potentially superior risk-adjusted returns.

Volatility

The ETF's historical volatility is generally in line with that of broad U.S. large-cap equity benchmarks, though specific stock selections can introduce idiosyncratic volatility.

Market Risk

The primary market risks include equity market downturns, changes in interest rates, inflationary pressures, and sector-specific headwinds impacting large-cap companies. The ETF's concentrated approach on large-cap stocks means it is susceptible to the performance of these major market segments.

Ideal Investor Profile

The ideal investor is one seeking capital appreciation from U.S. large-cap companies with an active management approach and a belief in quantitative strategies. Investors comfortable with a potentially higher expense ratio for active management and looking for an alternative to broad index funds would find this ETF suitable.

Market Risk

This ETF is best suited for long-term investors who understand and believe in the quantitative methodology employed by the fund manager and are seeking potential alpha generation within the large-cap U.S. equity space.

The Pacer Lunt Large Cap Alternator ETF (ALOT) offers an actively managed strategy focusing on U.S. large-cap equities, employing proprietary quantitative models for stock selection. While its AUM is modest compared to passive giants, its active approach aims to outperform benchmarks. Investors seeking differentiated exposure to large-cap U.S. stocks and who trust in quantitative methods may find ALOT appealing, though they should consider its expense ratio and market risks.

Data Sources:

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

Disclaimers:

This information is for illustrative purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making investment decisions. Data is subject to change and may not be entirely up-to-date.