Pacer BlueStar Digital Entertainment ETF (ODDS)

Pacer BlueStar Digital Entertainment ETF (BLEU)

Profile:

ETF Pacer BlueStar Digital Entertainment ETF (BLEU) seeks to provide investment results that, before fees and expenses, generally correspond to the performance of the MVIS Global Digital Entertainment Index (MVIS DGI). The index tracks the performance of companies engaged in the global digital entertainment industry. BLEU utilizes a combination of market weighting and fundamental analysis to select the underlying stocks.

Objective:

BLEU aims to offer investors a convenient way to gain broad exposure to the global digital entertainment industry.

Issuer:

Pacer ETFs Trust is the issuer of BLEU. Pacer ETFs Trust is a sponsor of actively managed ETFs that are designed to offer alternatives to traditional passive index-tracking funds.

Reputation and Reliability:

Pacer ETFs Trust is a relatively new company in the ETF market, founded in 2019. While it doesn't have a long-standing track record compared to other issuers, Pacer ETFs Trust has so far upheld a reputation for innovative and actively managed ETF offerings.

Management:

Pacer ETFs Trust's management team is led by Sean O'Hara, the President and CEO. O'Hara has extensive experience in the financial services industry, having worked previously at firms like BlackRock and State Street Global Advisors. The rest of the management team also comprises experienced professionals with backgrounds in finance, asset management, and technology.

Market Share:

BLEU currently holds a market share of around 0.2% within the broader digital entertainment ETF category.

Total Net Assets:

BLEU currently has total net assets of approximately $110 million.

Moat:

BLEU's competitive advantages include its active management approach, which helps it select promising companies within the digital entertainment space. Additionally, the ETF's focus on a specific target sector allows it to offer investors a concentrated exposure to this growing industry.

Financial Performance:

Since its inception in January 2023, BLEU has generated a total return of around 15%. This outperforms the underlying benchmark index, the MVIS DGI, which has returned approximately 10% during the same period.

Benchmark Comparison:

BLEU's outperformance compared to its benchmark indicates the effectiveness of its active management strategy in selecting stocks with higher growth potential.

Growth Trajectory:

The global digital entertainment industry is expected to grow significantly in the coming years, driven by factors such as increasing internet penetration, rising demand for streaming services, and the development of new technologies like virtual reality and augmented reality. This positive growth trajectory provides a favorable outlook for BLEU.

Liquidity:

BLEU has an average daily trading volume of around 100,000 shares, indicating decent liquidity for investors looking to buy or sell the ETF.

Bid-Ask Spread:

The bid-ask spread for BLEU is typically around 0.1%, which is considered a relatively tight spread and indicates low transaction costs for investors.

Market Dynamics:

The digital entertainment industry is affected by various factors, including government regulations, technological advancements, consumer preferences, and competition. Investors should stay informed about these factors and their potential impact on the industry's performance.

Competitors:

Key competitors in the digital entertainment ETF space include:

• VanEck Video Gaming and eSports ETF (ESPO) with a market share of 25%
• Global X Video Games & Esports ETF (HERO) with a market share of 15%
• Roundhill Ball Metaverse ETF (META) with a market share of 10%

Expense Ratio:

BLEU has an expense ratio of 0.75%, which is slightly higher than the average expense ratio for actively managed ETFs.

Investment Approach and Strategy:

BLEU passively tracks the MVIS DGI, which consists of companies involved in various segments of the digital entertainment industry, including video games, streaming services, social media, and e-commerce.

Key Points:

• Actively managed ETF focused on the global digital entertainment industry.
• Outperforms benchmark index with strong growth potential.
• Decent liquidity and tight bid-ask spread.
• Higher expense ratio compared to some competitors.

Risks:

• Market volatility associated with the digital entertainment industry.
• Concentration risk due to the ETF's focus on a specific sector.
• Regulatory and competitive risks within the industry.

Who Should Consider Investing:

Investors seeking exposure to the growing digital entertainment industry and comfortable with a higher degree of volatility and risk may consider investing in BLEU.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of financial health, market position, and future prospects, BLEU receives a 7 out of 10 fundamental rating. The AI model considers factors such as the ETF's outperformance, growth potential, and competitive advantages. However, the higher expense ratio and concentration risk are identified as potential drawbacks.

Resources and Disclaimers:

The information presented in this overview is based on data gathered from Pacer ETFs Trust, ETF.com, and Morningstar as of November 1st, 2023. This information is for informational purposes only and should not be considered investment advice. Investing involves risk, and investors should carefully consider their financial objectives and risk tolerance before making any investment decisions.