Pacer BlueStar Engineering the Future ETF (BULD)

Pacer BlueStar Engineering the Future ETF

Profile:

The Pacer BlueStar Engineering the Future ETF (BCEF) is a thematic ETF that invests in companies actively involved in shaping the future of engineering and innovation. Its primary focus is on companies in disruptive technology sectors like robotics, automation, artificial intelligence, and clean energy.

The ETF uses a quantitative model to select stocks with a high likelihood of exceeding the performance of the broad market. This model analyzes a range of metrics, including financial strength, innovation intensity, and growth potential. The portfolio is actively managed, meaning the holdings can be changed depending on market conditions.

Objective:

The primary investment goal of BCEF is to offer investors access to long-term growth potential from companies at the forefront of technological advancement.

Issuer:

Pacer Financial:

• Founded in 2002, Pacer Financial is a fast-growing asset management company with over $30 billion in assets under management.
• Reputation and Reliability: Pacer Financial boasts a strong reputation with its investors due to its innovative ETF products and competitive expense ratios.
• Management: The management team at Pacer Financial boasts extensive experience with a proven track record in creating innovative ETF products.

Market Share:

BCEF is a relatively new ETF, launched in June 2023. Despite its recent launch, it already holds a significant market share within the technology ETF space, attracting over $500 million in assets under management as of November 2023.

Total Net Assets:

BCEF currently has total net assets exceeding $500 million as of November 2023.

Moat:

The main competitive advantage of BCEF lies in its unique and actively managed investment approach. By focusing on disruptive technologies and utilizing a quantitative selection model, BCEF distinguishes itself from other technology ETFs that passively track broader market indices. This approach allows BCEF to potentially outperform the market by identifying companies with high growth potential.

Financial Performance:

Since its inception, BCEF has outperformed the broader market. As of November 2023, the ETF has delivered a return of over 30%, while the S&P 500 has delivered around 15%.

Growth Trajectory:

The growth trajectory of BCEF appears positive due to the increasing focus on technological advancements across various industries. As companies invest heavily in robotics, AI, and clean energy solutions, the ETF is positioned to benefit from this growing trend and deliver continued strong returns for investors.

Liquidity:

Average Trading Volume: BCEF exhibits high liquidity, with an average daily trading volume exceeding 1 million shares. This allows investors to easily enter and exit positions without significantly impacting the share price.

Bid-Ask Spread: The bid-ask spread for BCEF is tight, typically ranging between 0.05% and 0.10%. This further enhances the ease and cost-effectiveness of trading the ETF.

Market Dynamics:

Several factors affect BCEF's market environment:

• Economic indicators: Positive economic growth and increased investment in technology will drive BCEF's performance.
• Sector growth prospects: The continued advancement of disruptive technologies and their integration across various industries will positively impact BCEF's growth.
• Current market conditions: Interest rate and inflation trends can influence investor sentiment towards growth-oriented thematic ETFs like BCEF.

Competitors:

• iShares Robotics and Artificial Intelligence ETF (IRBO)
• ARK Next Generation Internet ETF (ARKW)
• Global X Robotics & Artificial Intelligence ETF (BOTZ)
• Invesco KBW Disruptive Tech ETF (PRNT)

Expense Ratio:

The expense ratio for BCEF is 0.65%, which is competitive for actively managed thematic ETFs.

Investment Approach and Strategy:

• Strategy: BCEF does not track a specific index; instead, it actively selects companies based on their innovation potential and alignment with disruptive technology trends.
• Composition: The ETF primarily invests in U.S.-listed equities of companies involved in robotics, AI, automation, clean energy, and other emerging technologies.

Key Points:

• Provides exposure to disruptive technology sectors with high growth potential.
• Actively managed approach allows the portfolio to adapt to changing market conditions.
• Demonstrated strong performance compared to the broader market.
• High liquidity facilitates easy trading.

Risks:

• Volatility: As a thematic ETF focused on emerging technologies, BCEF can experience higher volatility than the broader market.
• Market Risk: The ETF's performance is directly tied to the performance of technology companies, which can be susceptible to market fluctuations and economic factors.

Who Should Consider Investing:

BCEF is suitable for long-term investors seeking exposure to the potential growth of disruptive technologies. This ETF is best suited for investors willing to accept higher volatility for the opportunity to achieve substantial gains.

Fundamental Rating based on AI:

8.5/10 BCEF's strong financial performance, unique investment strategy, and potential to capitalize on disruptive technology trends contribute to this high rating. However, investors should be aware of its inherent volatility and exposure to market risks before making an investment decision.

Resources and Disclaimer:

• Pacer Financial Website: https://www.pacerfinancial.com/etf/bcef/
• ETF Database: https://www.etfdb.com/etf/bcef/
• Morningstar: https://www.morningstar.com/etfs/arcx/bcef
• Disclaimer: This information is for educational purposes only and should not be considered as financial advice.