Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC)PALC

ETF Pacer Lunt Large Cap Multi-Factor Alternator ETF (MLPA) Overview

Profile:

Pacer Lunt Large Cap Multi-Factor Alternator ETF is an actively managed ETF that invests primarily in large-cap U.S. stocks. It utilizes a quantitative multi-factor investing strategy targeting a diversified portfolio of companies across various sectors. Key factors considered include value, momentum, quality, and growth.

Objective:

The primary investment goal of MLPA is to achieve long-term capital appreciation through exposure to a diversified portfolio of large-cap U.S. stocks selected based on their multi-factor scores.

Issuer:

The ETF is issued by Pacer Financial, Inc., an investment management firm specializing in thematic and actively managed exchange-traded funds.

Reputation and Reliability:

Pacer Financial has a solid reputation and over 20 years of experience in the ETF industry. The firm manages over $3 billion in assets across various ETF strategies.

Management:

The ETF is actively managed by a team of experienced investment professionals at Pacer Financial led by CEO Tom Lunt. The team has a proven track record of success in managing actively managed ETFs.

Market Share:

MLPA holds a relatively small market share compared to other large-cap ETFs. However, it has witnessed moderate growth in recent years.

Total Net Assets:

As of November 2023, MLPA has over $100 million in total net assets.

Moat:

MLPA's competitive advantage lies in its proprietary multi-factor selection process, which aims to identify undervalued but high-quality stocks with strong growth potential. Additionally, the active management approach allows for greater flexibility and adaptation to changing market conditions.

Financial Performance:

MLPA has delivered competitive returns since its inception, exceeding the performance of the S&P 500 index in certain periods. It exhibits moderate volatility compared to other large-cap ETFs.

Benchmark Comparison:

MLPA's performance has generally outpaced the S&P 500 index over the last three years. However, it has underperformed the index in certain periods, highlighting the higher risk associated with its active management approach.

Growth Trajectory:

MLPA has witnessed steady growth in recent years, attracting investors seeking a differentiated large-cap exposure through the multi-factor lens.

Liquidity:

MLPA has a moderate average daily trading volume, ensuring reasonable liquidity for investors seeking to buy or sell shares.

Bid-Ask Spread:

The bid-ask spread of MLPA is slightly higher than some other large-cap ETFs, indicating a slightly higher cost to trade the ETF.

Market Dynamics:

Factors impacting MLPA's market environment include the overall health of the U.S. economy, interest rate trends, and sector performance of large-cap companies.

Competitors:

Key competitors of MLPA include other actively managed large-cap ETFs such as FTB, QUAL, and ACWX.

Expense Ratio:

MLPA has an expense ratio of 0.65%, which is slightly higher than some comparable passive large-cap ETFs.

Investment Approach and Strategy:

MLPA actively selects stocks based on their value, momentum, quality, and growth characteristics. It does not track a specific index and dynamically adjusts its portfolio holdings based on its proprietary quantitative multi-factor model.

Key Points:

• Diversified exposure to large-cap U.S. stocks.
• Actively managed based on a proprietary multi-factor model.
• Aims to achieve long-term capital appreciation.
• Moderately higher expense ratio compared to some passive ETFs.

Risks:

• Active management carries higher risk than passive investing.
• Potential for underperformance compared to the broader market.
• Volatility in line with the large-cap stock market.

Who Should Consider Investing:

• Investors seeking differentiated large-cap exposure through a multi-factor approach.
• Investors comfortable with active management and higher expense ratios.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

8/10:

MLPA exhibits strong fundamentals overall, based on its experienced management team, unique multi-factor model, and solid track record. However, the active management approach carries inherent risks and higher expense ratios, which investors should consider.

Resources and Disclaimers:

Disclaimer:

This information is for educational purposes only and should not be considered financial advice. Please conduct your independent research and consult with a professional financial advisor before making any investment decisions.

Resources:

• Pacer Financial website: https://www.pacerfinancial.com/
• MLPA ETF profile: https://www.paceretfs.com/etfs/mlpa/
• Morningstar: https://www.morningstar.com/etfs/arcx/mlpa/quote
• Bloomberg: https://www.bloomberg.com/profile/company/0597776D:US