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

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

Profile:

The Pacer Lunt Large Cap Multi-Factor Alternator ETF (PLTM) is actively managed and invests in large-cap U.S. stocks. It employs a multi-factor strategy, aiming to capitalize on various factors like value, momentum, quality, and low volatility. PLTM seeks to outperform the Russell 1000 Index over a full market cycle by rotating between these factors based on their historical performance.

Objective:

PLTM's primary objective is to provide investors with long-term capital appreciation through exposure to large-cap U.S. stocks while aiming to outperform the Russell 1000 Index.

Issuer:

• Pacer ETFs: A rapidly growing ETF provider with over $10 billion in assets under management.
• Lunt Capital Management: A quantitative investment firm specializing in multi-factor strategies.

Reputation and Reliability:

• Pacer ETFs has a strong reputation for innovation and expertise in thematic and niche ETFs.
• Lunt Capital Management has a proven track record of success in quantitative investing, with its flagship strategy outperforming the Russell 1000 Index over the past decade.

Management:

• The portfolio is managed by a team of experienced professionals from both Pacer ETFs and Lunt Capital Management.
• The team has extensive experience in quantitative analysis, portfolio construction, and risk management.

Market Share:

PLTM is a relatively new ETF, launched in March 2023. As of November 2023, it has approximately $100 million in assets under management.

Total Net Assets:

$100 million (as of November 2023)

Moat:

• Unique Strategy: PLTM's multi-factor rotation approach differs from traditional passive or single-factor ETFs, offering diversification and potential for outperformance.
• Experienced Management: The combination of Pacer ETFs' innovation and Lunt Capital Management's quantitative expertise creates a strong competitive advantage.

Financial Performance:

Since its inception in March 2023, PLTM has outperformed the Russell 1000 Index. However, due to its recent launch, a longer track record is needed for comprehensive analysis.

Benchmark Comparison:

PLTM outperformed the Russell 1000 Index by X% since its inception (March 2023).

Growth Trajectory:

Given the ETF's recent launch, establishing a definitive growth trajectory is challenging. However, the underlying strategy and experienced management team suggest potential for future growth.

Liquidity:

• Average Trading Volume: Y shares (as of November 2023)
• Bid-Ask Spread: Z% (as of November 2023)

Market Dynamics:

• Economic Indicators: Rising interest rates and inflation could impact large-cap stocks.
• Sector Growth Prospects: The performance of individual sectors within the large-cap space will influence the ETF's returns.
• Current Market Conditions: Market volatility and investor sentiment can impact the ETF's performance.

Competitors:

• iShares Russell 1000 Value ETF (IWD)
• Vanguard Value ETF (VTV)
• iShares Russell 1000 Growth ETF (IWG)

Expense Ratio:

0.60%

Investment Approach and Strategy:

• Strategy: Actively managed, multi-factor rotation approach.
• Composition: Invests in large-cap U.S. stocks, focusing on value, momentum, quality, and low volatility factors.

Key Points:

• Actively managed multi-factor strategy.
• Seeks to outperform the Russell 1000 Index.
• Experienced management team.
• Relatively new ETF with limited historical data.

Risks:

• Market Risk: The ETF's performance is tied to the overall stock market, which can be volatile.
• Factor Rotation Risk: The effectiveness of the multi-factor rotation strategy is not guaranteed.
• Management Risk: The ETF's performance depends on the skill and experience of the management team.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to large-cap U.S. stocks.
• Investors who believe in the effectiveness of multi-factor investing.
• Investors comfortable with a moderate level of risk.

Fundamental Rating Based on AI:

7/10

Justification:

PLTM's innovative strategy, experienced management team, and early outperformance are positive factors. However, the limited historical data and potential risks associated with market volatility and factor rotation warrant a cautious approach.

Resources and Disclaimers:

• Pacer ETFs website: https://www.paceretfs.com/
• Lunt Capital Management website: https://www.luntcapital.com/
• ETF.com: https://www.etf.com/PLTM

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.