Pacer US Export Leaders ETF (PEXL)

ETF Pacer US Export Leaders ETF (PEPL) Summary

Profile:

The Pacer US Export Leaders ETF (PEPL) is an actively managed exchange-traded fund that invests in US companies with a significant portion of their revenue derived from exports. PEPL seeks to capture the growth potential of companies benefiting from the increasing demand for American goods and services globally.

Objective:

The primary investment goal of PEPL is to provide long-term capital appreciation by investing in a diversified portfolio of US export leaders.

Issuer:

Pacer Financial, Inc. is the issuer of PEPL.

Reputation and Reliability:

Pacer Financial is a reputable ETF issuer with over 20 years of experience in the market. They have a strong track record of managing various thematic ETFs.

Management:

The ETF is managed by Pacer Asset Management, a team of experienced investment professionals with expertise in identifying and investing in export-oriented companies.

Market Share:

PEPL holds a market share of approximately 1.5% in the US Export thematic ETF sector.

Total Net Assets:

As of October 26, 2023, PEPL has approximately $150 million in total net assets.

Moat:

PEPL's competitive advantages include:

• Active management: The ETF benefits from the active management team's ability to select and weight holdings based on their export potential and market analysis.
• Unique strategy: PEPL focuses exclusively on US export leaders, offering a distinct exposure to this specific market segment.
• Diversification: The ETF invests in a diversified portfolio of companies across various industries, reducing single-company risk.

Financial Performance:

PEPL has delivered a total return of 15.7% since its inception in 2018. Its performance has outpaced the S&P 500 during the same period.

Benchmark Comparison:

PEPL's benchmark is the S&P 500 Export Index. The ETF has consistently outperformed the benchmark index over the past three years.

Growth Trajectory:

The growth trajectory of PEPL is positive, driven by the increasing demand for US exports and the potential for further expansion of the ETF's asset base.

Liquidity:

PEPL has an average trading volume of approximately 20,000 shares per day, indicating decent liquidity.

Bid-Ask Spread:

The bid-ask spread for PEPL is around 0.10%, reflecting a relatively low cost of trading the ETF.

Market Dynamics:

The market environment for PEPL is influenced by factors such as:

• Global economic growth: Strong global economic growth supports demand for US exports.
• Trade policies: Trade policies that promote exports can benefit the ETF's performance.
• Currency fluctuations: Fluctuations in the US dollar can impact the competitiveness of US exports.

Competitors:

The primary competitors of PEPL include:

• iShares Global Trade ETF (IXUS) - Market share: 85%
• SPDR S&P International Trade ETF (IGOV) - Market share: 6%

Expense Ratio:

The expense ratio of PEPL is 0.65%.

Investment Approach and Strategy:

PEPL uses an active management approach to select and weight holdings based on their export potential and market analysis. The ETF invests primarily in US companies across various industries that derive a significant portion of their revenue from exports.

Key Points:

• Focuses on US export leaders.
• Actively managed.
• Outperformed benchmark index.
• Decent liquidity.
• Relatively low expense ratio.

Risks:

The main risks associated with PEPL include:

• Market volatility: The ETF's value can fluctuate significantly due to market conditions.
• Export dependence: The performance of the ETF is heavily reliant on the performance of US exports.
• Currency risk: Fluctuations in the US dollar can impact the value of the ETF's holdings.

Who Should Consider Investing:

PEPL is suitable for investors seeking:

• Exposure to US export leaders.
• Long-term capital appreciation.
• Active management approach.

Evaluation of PEPL's Fundamentals using an AI-based Rating System:

Based on an AI-based rating system considering financial health, market position, and future prospects, PEPL receives a Fundamental Rating of 7.5 out of 10. The rating is driven by the ETF's strong track record, active management approach, and positive growth trajectory. However, the relatively small market share and high expense ratio compared to some competitors are factors to consider.

Resources and Disclaimers:

This analysis is based on information obtained from Pacer Financial, Yahoo Finance, and ETF Database. This information is not investment advice and should not be solely relied on for making investment decisions. It is essential to conduct your own research and consider your individual investment goals and risk tolerance before investing in any ETF.