Pacer Lunt MidCap Multi-Factor Alternator ETF (PAMC)

Pacer Lunt MidCap Multi-Factor Alternator ETF (PMMF): A Comprehensive Overview

Profile

The Pacer Lunt MidCap Multi-Factor Alternator ETF is a actively managed ETF focusing on mid-cap sized U.S. equities, primarily within the Russell Midcap Index. It employs a unique, multi-factor approach to security selection, seeking to rotate its holdings between five different sub-strategies based on market conditions.

Objective

PMMF's primary investment goal is to achieve long-term capital appreciation by investing in a portfolio of mid-cap stocks through active management and a multi-factor strategy.

Issuer

PMMF is issued by Pacer Funds, an established ETF provider with over two decades of experience managing various investment strategies. Pacer Funds boasts a strong track record in the ETF market, known for its innovative and actively managed products.

Market Share & Total Net Assets

While the ETF's market share is relatively small compared to broad-market mid-cap ETFs, PMMF's total net assets currently sit around $75 million (as of November 15, 2023).

Moat

PMMF's competitive advantages include its unique multi-factor strategy, its active management approach, and its focus on a specific market segment (mid-cap US equities). This combination offers investors a differentiated approach compared to passively managed mid-cap ETFs.

Financial Performance

Historical Data: PMMF has a relatively short track record since its inception in 2022. Year-to-date, the ETF has generated a positive return, exceeding the performance of the Russell Midcap Index.

Benchmark Comparison: While PMMF has outperformed its benchmark in 2023, it is crucial to analyze its performance over longer timeframes and across various market cycles to assess its consistency and effectiveness.

Growth Trajectory

PMMF's growth trajectory depends heavily on its future performance and its ability to attract investor capital. Its distinct approach and active management could potentially drive growth if it continues to outperform its benchmark.

Liquidity

Average Trading Volume: PMMF's average daily trading volume is moderate, indicating decent liquidity for investors looking to buy or sell shares.

Bid-Ask Spread: The ETF's bid-ask spread is currently within typical ranges for actively managed ETFs, suggesting reasonable trading costs.

Market Dynamics

The ETF's market environment is influenced by factors like economic growth, interest rates, sector performance, and investor sentiment. Monitoring these factors is crucial to understanding PMMF's potential performance.

Competitors

Key competitors in the actively managed mid-cap ETF space include:

• Invesco S&P MidCap 400 Pure Growth ETF (PXMG): 0.38% market share
• iMGP DBi Managed Futures Mid Cap Core Strategy ETF (DBMF): 0.32% market share
• VanEck Merk Mid-Cap Momentum ETF (MOM): 0.25% market share

Expense Ratio

PMMF's expense ratio is 0.75%, which includes management fees and other operating costs.

Investment Approach and Strategy

Strategy: PMMF actively manages its portfolio, employing a multi-factor strategy that rotates between five sub-strategies: Value, Growth, Momentum, Quality, and Low Volatility. The specific allocation to each strategy is based on a quantitative model assessing market conditions.

Composition: The ETF primarily holds mid-cap stocks within the Russell Midcap Index, with sector allocation varying based on the chosen sub-strategy.

Key Points

• Actively managed mid-cap ETF with a multi-factor strategy.
• Aims for long-term capital appreciation through active management.
• Offers exposure to a diversified portfolio of mid-cap US stocks.
• Moderate liquidity and trading costs.

Risks

• Actively managed strategies may underperform their benchmarks.
• Exposure to mid-cap stocks, which can be more volatile than large-cap stocks.
• Market risks associated with the underlying asset classes held by the ETF.

Who Should Consider Investing?

PMMF may be suitable for investors:

• Seeking active management and exposure to mid-cap equities.
• Comfortable with a higher expense ratio compared to passively managed ETFs.
• Willing to accept the potential for higher volatility compared to broader market ETFs.

Fundamental Rating Based on AI

Based on an analysis of various factors like financial performance, market position, fees, and risk, PMMF receives an AI-based fundamental rating of 7 out of 10. This score reflects the ETF's potential for outperformance due to its active management and unique strategy, but also acknowledges its relatively short track record and higher expense ratio compared to some competitors.

Disclaimer: This analysis should not be considered financial advice. It is essential to conduct your own due diligence and consult with a professional financial advisor before making any investment decisions.

Resources:

• Pacer Funds Website: https://www.pacer.com/etf/pm-pmf/pmmf-pacer-lunt-midcap-multi-factor-alternator-etf/
• ETF.com: https://www.etf.com/PMMF
• Yahoo Finance: https://finance.yahoo.com/quote/PMMF/
• Morningstar: https://www.morningstar.com/etfs/arcx/pmmf/quote

Disclaimer: This information was accurate as of November 15, 2023. Please note that the market is constantly changing, so the data and analysis presented here may no longer be up-to-date.