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

Overview

The Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is an actively managed ETF that seeks long-term capital appreciation by investing in large-cap U.S. equities. It uses a quantitative, multi-factor model to select stocks, rotating between factors such as value, momentum, and quality based on macroeconomic conditions.

Reputation and Reliability

Pacer ETFs is a relatively newer, but growing ETF provider known for its rules-based, index-tracking and factor-based strategies. They have a solid reputation for innovation and transparency.

Management Expertise

Pacer Financial has a team of experienced investment professionals with expertise in quantitative analysis and ETF management.

Goal

The primary investment goal of PALC is long-term capital appreciation.

Investment Approach and Strategy

Strategy: PALC is an actively managed ETF that utilizes a quantitative, multi-factor rotation strategy, not tracking a specific index.

Composition The ETF primarily holds U.S. large-cap equities, selected based on a rotating factor model that considers value, momentum, and quality.

Market Share: Data unavailable.

Total Net Assets (AUM): 12963042

Key Competitors

• IVV
• SPY
• VOO
• MTUM
• QUAL
• VLUE

Competitive Landscape

The ETF industry is highly competitive, with many large-cap ETFs available. PALC differentiates itself through its active, multi-factor rotation strategy. Compared to passively managed ETFs like SPY or IVV, PALC may offer the potential for outperformance but also carries higher fees and the risk of underperformance. Factor based ETF competitors seek to outperform SPY with their factor-based approach.

Historical Performance: Historical performance data is not available as requested. Please use financial analysis tools to retrieve this data.

Benchmark Comparison: Benchmark comparison data is unavailable. Analysis should be performed against relevant large-cap indices and factor-based ETFs.

Expense Ratio: 0.6

Average Trading Volume

The average daily trading volume for PALC is relatively low, indicating lower liquidity compared to more popular ETFs.

Bid-Ask Spread

The bid-ask spread for PALC may be wider than more liquid ETFs, potentially increasing trading costs.

Market Environment Factors

Economic indicators, sector growth, and overall market sentiment significantly influence PALC's performance, given its dynamic factor allocation strategy.

Growth Trajectory

PALC's growth is dependent on the effectiveness of its factor rotation model, the appeal of active management in the large-cap space, and Pacer's ability to attract assets.

Competitive Edge

PALC's competitive edge lies in its active, multi-factor rotation strategy, which aims to adapt to changing market conditions and capitalize on different factor premiums. This quantitative approach distinguishes it from passively managed large-cap ETFs. The dynamic allocation seeks to provide superior risk-adjusted returns compared to static factor ETFs. However, its success hinges on the accuracy of its factor model and its ability to anticipate market shifts.

Volatility

PALC's volatility will fluctuate based on the volatility of its underlying holdings and the effectiveness of its factor rotation strategy.

Market Risk

PALC is exposed to market risk inherent in large-cap equities, as well as the risk of its factor model underperforming the market.

Ideal Investor Profile

The ideal investor for PALC is one who seeks long-term capital appreciation, is comfortable with active management and a dynamic investment strategy, and understands the risks associated with factor-based investing.

Market Risk

PALC may be suitable for long-term investors seeking potential outperformance but should be considered as part of a diversified portfolio. It is less suited for passive index followers.

The Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is an actively managed ETF that seeks to outperform traditional large-cap benchmarks through a dynamic, multi-factor rotation strategy. It invests in U.S. large-cap equities, allocating to factors like value, momentum, and quality based on a quantitative model. PALC offers the potential for higher returns but carries higher fees and the risk of underperformance compared to passive ETFs. It is suitable for investors who understand factor-based investing and seek active management in their large-cap allocation.

Data Sources:

• Pacer ETFs official website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered as financial advice. Investment decisions should be made based on individual circumstances and after consultation with a qualified financial advisor.