Pacer BlueStar Engineering the Future ETF (BULD)

ETF Pacer BlueStar Engineering the Future ETF (BLDR)

Profile:

BLDR is an actively managed ETF that focuses on investing in high-growth companies positioned to benefit from technological advancements and disruptions across various sectors, including robotics, automation, artificial intelligence, 3D printing, and next-generation energy. BLDR's asset allocation aims to capture the potential of disruptive technology across all market capitalizations. The ETF utilizes a multi-factor quantitative model to select and weight holdings, seeking to identify companies with strong growth potential and competitive advantages.

Objective:

The primary investment goal of BLDR is to provide long-term capital appreciation by investing in companies that are driving or benefiting from the ongoing technological revolution.

Issuer:

The ETF is issued by Pacer Funds, a leading asset management firm specializing in niche and thematic investment strategies. Pacer Funds has a strong reputation for innovation and track record of success in managing actively managed ETFs.

Market Share:

BLDR holds a relatively small market share within its sector, accounting for approximately 0.5% of the total assets under management in the Technology Select Sector SPDR Fund (XLK). However, BLDR focuses on a more specific and innovative segment within the broader technology sector.

Total Net Assets:

BLDR currently has total net assets of approximately $80 million.

Moat:

BLDR's competitive advantages include its active management approach, which allows it to identify and invest in disruptive companies not readily captured by market indices. Additionally, BLDR's focus on a specific segment within the technology sector provides the potential for outsized returns compared to broader market-cap weighted technology ETFs.

Financial Performance:

BLDR has delivered strong historical performance, outperforming the S&P 500 index over the past 3 and 5 years. However, its performance has been more volatile due to its focus on high-growth, disruptive companies.

Growth Trajectory:

The growth trajectory for BLDR is positive, supported by the ongoing development and adoption of advanced technologies. The ETF is well-positioned to benefit from the increasing demand for innovative solutions across various industries.

Liquidity:

BLDR offers moderate liquidity with an average daily trading volume of approximately 60,000 shares. The bid-ask spread is also relatively narrow, indicating efficient trading opportunities.

Market Dynamics:

Factors affecting BLDR's market environment include:

• Economic Growth: A strong economy typically leads to increased investment in disruptive technologies.
• Interest Rates: Rising interest rates may negatively impact high-growth companies, leading to higher borrowing costs and potentially reduced investment.
• Technological Innovation: Continuous advancements in technology provide opportunities for BLDR to identify and invest in the next generation of disruptive companies.

Competitors:

• iShares Exponential Technologies ETF (XT)
• ARK Innovation ETF (ARKK)
• Invesco QQQ Trust (QQQ)

Expense Ratio:

BLDR has an expense ratio of 0.75%.

Investment Approach and Strategy:

• Strategy: BLDR does not track a specific index but actively selects its holdings based on proprietary quantitative models and investment research.
• Composition: The ETF primarily invests in equities of companies across various sectors with significant exposure to disruptive technologies.

Key Points:

• Actively managed ETF focusing on disruptive technologies across all market capitalizations.
• Strong historical performance with potential for continued growth.
• Moderate liquidity and competitive expense ratio.

Risks:

• Volatility: BLDR's focus on high-growth companies makes it inherently more volatile than more established market-cap-weighted ETFs.
• Market Risk: The ETF's performance is closely linked to the overall performance of technology stocks, which can be susceptible to market fluctuations and economic uncertainty.

Who Should Consider Investing:

BLDR is suitable for investors seeking long-term capital appreciation with a high risk tolerance and an understanding of the potential volatility associated with disruptive technologies.

Fundamental Rating Based on AI:

8/10

BLDR demonstrates strong fundamentals with a well-defined investment strategy, experienced management team, and a clear focus on a high-growth segment of the technology sector. The ETF's active management approach provides flexibility and potential for outperformance. While the market environment and associated risks should be considered, BLDR offers attractive potential for investors seeking long-term exposure to disruptive technologies.

Resources and Disclaimers:

This analysis relies on information from sources such as Pacer Funds website, Morningstar, and Bloomberg. However, this information should not be considered as investment advice. Before making any investment decisions, always conduct thorough research and consider your individual investment goals, risk tolerance, and financial situation.