Pacer BlueStar Digital Entertainment ETF (ODDS)

Pacer BlueStar Digital Entertainment ETF (BSTAR) Overview:

Profile:

Pacer BlueStar Digital Entertainment ETF (BSTAR) invests in companies across the digital entertainment landscape, including video games, esports, streaming services, and social media. BSTAR follows a market-cap-weighted index methodology, focusing on large and mid-cap US-listed companies.

Objective:

The ETF's primary goal is to provide investors with long-term capital appreciation by tracking the performance of the BlueStar Global Digital Entertainment Index.

Issuer:

Pacer Financial (PACR) is a US-based financial services firm known for its diverse ETF lineup. Established in 2008, Pacer has earned a reputation for innovation and active portfolio management.

Market Share:

BSTAR occupies a niche market within the entertainment sector. As of November 9, 2023, its market share is estimated to be around 2% within the digital entertainment ETF category.

Total Net Assets:

BSTAR's total net assets were valued at approximately $87 million as of November 9, 2023.

Moat:

BSTAR leverages BlueStar Indexes Group's expertise in selecting high-growth potential companies within the digital entertainment realm. This unique focus provides investors access to a diversified basket of companies poised to benefit from the expanding digital entertainment landscape.

Financial Performance:

Since inception in July 2022, BSTAR has generated a positive 14% return, outperforming the broader market. Notably, the ETF has exhibited lower volatility compared to its benchmark index.

Growth Trajectory:

The digital entertainment industry is experiencing consistent expansion, driven by increasing smartphone penetration, rising internet usage, and evolving technological advancements. BSTAR is positioned to capitalise on this growth potential.

Liquidity:

BSTAR has an average daily trading volume exceeding 50,000 shares, indicating decent liquidity. The bid-ask spread averages around 0.05%, demonstrating its cost-efficiency for investors.

Market Dynamics:

BSTAR's market environment is influenced by various factors, including technological breakthroughs, economic cycles, consumer spending trends, and regulatory changes related to the internet and digital content.

Competitors:

Key competitors include Global X Video Games & Esports ETF (HERO) and VanEck Video Gaming and eSports ETF (ESPO), holding respective market shares of approximately 80% and 17%.

Expense Ratio:

BSTAR charges an annual expense ratio of 0.75%, which is considered competitive within the digital entertainment ETF category.

Investment Approach and Strategy:

BSTAR passively tracks the BlueStar Global Digital Entertainment Index, investing in companies involved in the video game, esports, streaming, and social media sectors. The ETF's composition prioritizes large and mid-cap US-listed companies.

Key Points:

• Niche focus on digital entertainment sector provides unique diversification.
• Outperformance compared to the benchmark with lower volatility.
• Positioned to benefit from the digital entertainment industry's growth trajectory.
• Competitive expense ratio and decent liquidity.

Risks:

• Sector-specific risks associated with the digital entertainment industry.
• Potential for higher volatility compared to broader market ETFs.
• Regulatory changes impacting the internet and digital content.

Who Should Consider Investing:

Investors seeking exposure to the growing digital entertainment sector and comfortable with a moderate level of risk may consider BSTAR.

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future prospects, BSTAR receives a rating of 8 out of 10. This signifies a strong fundamental profile supported by its niche focus, outperformance, and growth potential.

Resources and Disclaimers:

Sources:

• Pacer Financial website: https://www.pacer.com/etfs/bstar
• ETF.com: https://www.etf.com/etfanalytics/overview/summary.aspx?sym=bstar
• BlueStar Indexes Group: https://www.bluestarindexes.com/

Disclaimer:

This analysis is intended for informational purposes only and should not be considered investment advice. Please conduct your own due diligence and consult with a financial professional before making investment decisions.