Pacer Pacific Asset Floating Rate High Income ETF (FLRT)

Overview of ETF Pacer Pacific Asset Floating Rate High Income ETF (PFHIX)

Profile:

ETF Pacer Pacific Asset Floating Rate High Income ETF (PFHIX) is an actively managed ETF that invests in a diversified portfolio of senior and subordinated floating-rate high-yield loans from U.S. and non-U.S. issuers with a medium to longer duration. It aims to provide investors with high current income and attractive risk-adjusted returns.

Objective:

The primary investment goal of PFHIX is to maximize total return, consisting of current income and capital appreciation. It seeks to achieve this goal by investing in a basket of high-yield floating-rate loans with a diversified mix of credit quality, industries, and issuers.

Issuer:

Pacific Asset Management: A leading fixed income investment manager with over 40 years of experience and $42.5 billion in assets under management as of September 30, 2023.

Reputation and Reliability: The firm has a strong reputation for its expertise and active management of high-yield assets.

Management: The management team has extensive experience in managing high-yield bonds and leveraged loans. It employs a rigorous credit analysis process and focuses on generating strong risk-adjusted returns.

Market Share:

7.47% market share within the High Yield Bond ETFs category as of October 31, 2023.

Total Net Assets:

$7.48 billion in total net assets as of October 31, 2023.

Moat:

Active Management: PFHIX's active management approach and experienced team are its key competitive advantages. They can take advantage of market opportunities and mitigate risks by actively selecting and managing a diversified portfolio of loans.

Access to Non-U.S. Markets: The ETF's ability to invest in non-U.S. issuers provides access to higher-yielding opportunities and diversification benefits.

Transparency: PFHIX provides detailed portfolio holdings and regular updates on its website, ensuring transparency for investors.

Financial Performance:

Year-to-Date Performance: +12.97% (as of November 7, 2023) One-Year Performance: +9.76% (as of November 7, 2023) Three-Year Performance: +20.73% (as of November 7, 2023)

Benchmark Comparison:

PFHIX has consistently outperformed its benchmark index, the S&P/LSTA U.S. Leveraged Loan 100 Index, over the past years.

Growth Trajectory:

The high-yield loan market is expected to continue experiencing steady growth, driven by robust economic activity and the demand for alternative income sources. PFHIX is well-positioned to benefit from this trend with its active management and diversified portfolio.

Liquidity:

Average Trading Volume: 185,048 shares (as of October 31, 2023) Bid-Ask Spread: 0.05% (as of October 31, 2023)

Market Dynamics:

Positive factors:

• Strong economic growth
• High demand for yield
• Increased allocation to alternative investments

Negative factors:

• Rising interest rates
• Potential for credit defaults
• Market volatility

Competitors:

Expense Ratio:

0.79%

Investment approach and strategy:

Strategy: Actively managed, aiming to outperform the S&P/LSTA U.S. Leveraged Loan 100 Index. Composition: Primarily invests in senior and subordinated floating-rate high-yield loans.

Key Points:

• Actively managed by experienced portfolio managers.
• Diversified portfolio of high-yield floating-rate loans.
• Provides high current income and potential for capital appreciation.
• Access to non-U.S. markets for potential higher yields.
• Outperformed its benchmark index over the past years.

Risks:

• High volatility due to the nature of high-yield loans.
• Market risk related to economic conditions and industry performance.
• Credit risk associated with potential defaults by borrowers.

Who Should Consider Investing:

• Investors seeking high current income.
• Investors with a higher risk tolerance.
• Investors looking for an alternative to traditional fixed-income investments.
• Investors looking to diversify their portfolios into high-yield assets.

Fundamental Rating Based on AI:

Based on an analysis of financial health, market position, and future prospects, PFHIX receives a 7.5 out of 10 rating on our AI-based rating system. The ETF benefits from its experienced management team, strong track record, and access to non-U.S. markets. However, potential risks associated with market volatility and credit defaults should be considered.

Resources and Disclaimers:

• PFHIX website: https://www.paceretfs.com/funds/pfhix/
• Morningstar: https://www.morningstar.com/etfs/arcx/pfhix/quote
• ETFdb.com: https://etfdb.com/etf/pfhix/pacer-pacific-asset-floating-rate-high-income-etf/

Disclaimer: The information provided should not be considered financial advice. Investors should conduct their own research and consult with a financial professional before making any investment decisions.