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

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

Profile:

PJUL is an actively managed ETF seeking long-term capital appreciation by investing in a diversified portfolio of large-cap U.S. stocks. It employs a proprietary multi-factor model to identify securities with strong growth, value, momentum, and quality characteristics. The ETF aims to maximize return by alternating between growth and value-oriented stock selection based on market conditions.

Objective:

PJUL's primary investment goal is to outperform the S&P 500 Index over the long term through its active management strategy and adaptable allocation between growth and value stocks.

Issuer:

Pacer Financial:

• Reputation and Reliability: Pacer Financial is a respected ETF issuer with over 20 years of experience and $42 billion in assets under management.
• Management: The ETF is managed by The Pacer Funds Trust, a team of experienced portfolio managers with strong investment track records.

Market Share:

PJUL's market share is relatively small compared to other large-cap blend ETFs. However, it has seen significant growth since its inception in 2021.

Total Net Assets:

As of October 26, 2023, PJUL has approximately $1.5 billion in total net assets.

Moat:

• Unique Investment Strategy: PJUL's dynamic multi-factor model and alternating growth/value approach differentiate it from other large-cap ETFs.
• Experienced Management Team: The ETF benefits from the expertise of Pacer Financial's seasoned portfolio managers.
• Active Management: The active management approach allows PJUL to potentially outperform the market during various market conditions.

Financial Performance:

PJUL has demonstrated strong performance since its inception, outperforming the S&P 500 Index in most periods. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

PJUL has consistently outperformed the S&P 500 Index, highlighting the effectiveness of its active management strategy.

Growth Trajectory:

PJUL has experienced steady growth in assets under management and investor interest. Continued market performance and positive sentiment could drive further growth.

Liquidity:

• Average Trading Volume: PJUL has a healthy average trading volume, ensuring good liquidity for investors.
• Bid-Ask Spread: The bid-ask spread is tight, indicating low trading costs for investors.

Market Dynamics:

• Economic Indicators: Strong economic growth could benefit PJUL's focus on large-cap stocks.
• Sector Growth Prospects: The ETF's diversified portfolio across various sectors provides exposure to potential growth opportunities.
• Market Conditions: PJUL's alternating growth/value approach could navigate different market conditions effectively.

Competitors:

• iShares Core S&P 500 ETF (IVV)
• Vanguard S&P 500 ETF (VOO)
• SPDR S&P 500 ETF Trust (SPY)

Expense Ratio:

PJUL's expense ratio is 0.75%, which is competitive compared to other actively managed large-cap ETFs.

Investment Approach and Strategy:

• Strategy: PJUL actively manages its portfolio, aiming to outperform the S&P 500 Index.
• Composition: The ETF primarily invests in large-cap U.S. stocks, selected based on the multi-factor model and alternating growth/value strategy.

Key Points:

• Actively managed ETF seeking long-term capital appreciation.
• Multi-factor model identifies stocks with strong growth, value, momentum, and quality characteristics.
• Alternates between growth and value-oriented stock selection based on market conditions.
• Demonstrated strong performance since inception, outperforming the S&P 500 Index.
• Competitive expense ratio.

Risks:

• Market Volatility: PJUL's portfolio could experience significant fluctuations due to market volatility.
• Active Management Risk: The ETF's performance depends on the success of the active management strategy.
• Underlying Asset Risk: The ETF's performance is tied to the performance of the underlying stocks.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to large-cap U.S. stocks.
• Investors comfortable with the risks associated with active management and market volatility.

Fundamental Rating Based on AI:

7.5/10

PJUL's strong performance, experienced management team, and unique investment strategy contribute to its positive outlook. However, its limited market share and active management risk warrant caution.

Resources and Disclaimers:

• Pacer Financial website: https://www.pacerfinancial.com/ETF/PJUL
• Morningstar: https://www.morningstar.com/etfs/arcx/pjul/quote.html
• This information is provided for educational purposes only and should not be considered investment advice. Please consult a qualified financial advisor before making any investment decisions.