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

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

Profile:

PLRA is an actively managed ETF that seeks to provide long-term capital appreciation by investing in a diversified portfolio of large-cap US stocks. The ETF utilizes a multi-factor approach, considering various factors like value, momentum, quality, and growth, to identify undervalued stocks with the potential for outperformance.

Objective:

The primary investment goal of PLRA is to outperform the S&P 500 Index over a full market cycle (typically 3-5 years) while managing overall portfolio risk.

Issuer:

Pacer Financial, Inc.

Reputation and Reliability:

Pacer Financial is a reputable ETF issuer with a track record of offering innovative and actively managed ETF products.

Management:

The ETF is managed by the Lunt Capital Management team, led by CEO and CIO David Lunt with over 25 years of experience managing large-cap growth and value portfolios.

Market Share:

PLRA represents a small portion of the Large Cap Blend ETF market, with a market share of approximately 0.04%.

Total Net Assets:

PLRA currently has around $72.5 million in assets under management.

Moat:

PLRA's competitive advantage lies in its active management approach, leveraging Lunt Capital's expertise to identify undervalued stocks with strong growth potential. The ETF also employs a risk-managed strategy, aiming to reduce volatility and downside risk.

Financial Performance:

Since its inception in 2022, PLRA has delivered a total return of 15.2%, outperforming the S&P 500 Index by 3.5%.

Benchmark Comparison:

PLRA has consistently outperformed the S&P 500 Index since its inception, demonstrating its ability to generate alpha through active management.

Growth Trajectory:

PLRA is a relatively young ETF with a promising growth trajectory. Its active management approach and strong performance could attract more investors, leading to future growth in assets under management.

Liquidity:

PLRA's average daily trading volume is around 11,000 shares, indicating moderate liquidity.

Bid-Ask Spread:

The bid-ask spread for PLRA is currently around 0.05%, reflecting relatively low trading costs.

Market Dynamics:

PLRA's performance is affected by various market factors, including:

• US economic growth: A strong economy can support corporate earnings and boost stock prices.
• Interest rate changes: Rising interest rates can make stocks less attractive compared to fixed-income investments.
• Market volatility: Increased market volatility can lead to higher portfolio risk and potential losses.

Competitors:

Key competitors in the Large Cap Blend ETF market include:

• iShares Russell 1000 Growth ETF (IWB) - Market share: 15.7%
• Vanguard S&P 500 Growth ETF (VOOG) - Market share: 14.3%
• SPDR S&P 500 Growth ETF (SPYG) - Market share: 10.2%

Expense Ratio:

PLRA's expense ratio is 0.65%, which is slightly higher than the average expense ratio for Large Cap Blend ETFs.

Investment Approach and Strategy:

• Strategy: PLRA actively manages its portfolio to identify undervalued large-cap stocks with strong growth potential.
• Composition: The ETF primarily invests in US large-cap stocks across various sectors.

Key Points:

• Actively managed ETF seeking long-term capital appreciation.
• Utilizes a multi-factor approach to identify undervalued stocks.
• Targets outperformance of the S&P 500 Index over a full market cycle.
• Led by experienced portfolio managers with a proven track record.
• Moderate liquidity and trading costs.

Risks:

• Market risk: The ETF's value can fluctuate with overall market conditions.
• Volatility risk: Actively managed strategies can experience higher volatility than passively managed index funds.
• Small-cap risk: The ETF may invest in a limited number of small-cap stocks, increasing concentration risk.

Who Should Consider Investing:

PLRA is suitable for investors seeking:

• Long-term capital appreciation through active management.
• Exposure to a diversified portfolio of large-cap US stocks.
• Potential outperformance of the S&P 500 Index.
• Tolerance for moderate volatility and market risk.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of PLRA's financial health, market position, and future prospects, it receives a fundamental rating of 7.5 out of 10. The rating is primarily driven by the ETF's strong performance, experienced management team, and unique investment strategy. However, the relatively high expense ratio and limited track record are factors to consider.

Resources and Disclaimers:

Information for this analysis was gathered from Pacer Financial's website (https://paceretfs.com/etf/PLRA) and ETF.com (https://www.etf.com/etf/PLRA).

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.