Pacer US Export Leaders ETF (PEXL)

Pacer US Export Leaders ETF (GSPT) Overview

Profile:

The Pacer US Export Leaders ETF (GSPT) invests in large-cap U.S. companies that generate a significant portion of their revenue from exports. It seeks to track the Pacer US Export Leaders Index, which is designed to reflect the performance of such companies. GSPT employs a passive management strategy and uses full replication to achieve its investment objective.

Objective:

The primary objective of GSPT is to provide investors with long-term capital appreciation by investing in companies benefiting from the growth of U.S. exports.

Issuer:

Pacer Financial, Inc. is a U.S.-based asset management firm established in 2008. The firm specializes in thematic ETFs, focusing on specific sectors or investment strategies. Pacer Financial is known for its innovative ETF products and has a strong reputation in the industry.

Market Share:

GSPT holds a market share of approximately 0.6% within the Developed Markets Equity ETFs category.

Total Net Assets:

As of November 2023, GSPT has around $250 million in total net assets.

Moat:

GSPT's unique focus on export-driven companies creates a niche advantage. It caters to investors seeking exposure to this specific segment of the market, offering differentiated diversification.

Financial Performance:

Since inception in 2017, GSPT has delivered an annualized return of 8.5%. Its performance has outpaced the S&P 500 during the same period, demonstrating its potential for generating alpha.

Benchmark Comparison:

GSPT's performance has generally tracked the Pacer US Export Leaders Index closely. This indicates its effectiveness in replicating the index and achieving its investment objective.

Growth Trajectory:

The growth of global trade and the increasing importance of exports for the U.S. economy suggest a positive outlook for GSPT. However, the ETF's future performance will depend on various factors, including global economic conditions and trade policies.

Liquidity:

GSPT has an average daily trading volume of approximately 50,000 shares, indicating moderate liquidity. The bid-ask spread is typically around 0.05%, reflecting a relatively low trading cost.

Market Dynamics:

Factors like global economic growth, trade agreements, currency fluctuations, and geopolitical events can impact GSPT's market environment.

Competitors:

GSPT's main competitors include:

• iShares International Developed Markets Core ETF (IXUS) - Market share: 4.5%
• Vanguard FTSE Developed Markets ETF (VEA) - Market share: 4.0%
• SPDR S&P 500 ETF (SPY) - Market share: 25%

Expense Ratio:

The expense ratio for GSPT is 0.50% per year, which is considered average for actively managed ETFs.

Investment Approach and Strategy:

GSPT employs a passive management strategy with full replication. It invests in the underlying securities of the Pacer US Export Leaders Index in the same proportions as the index itself. The ETF primarily holds large-cap stocks from various sectors with significant exposure to international markets.

Key Points:

• Focused exposure to export-driven U.S. companies
• Passive management with full replication
• Outperformance compared to the S&P 500
• Moderate liquidity
• Average expense ratio

Risks:

• Volatility: GSPT's performance may be more volatile than the broader market due to its focus on a specific segment.
• Market Risk: The ETF's value is subject to fluctuations in the stock market and global economic conditions.
• Sector Concentration: The concentration in export-related companies could lead to higher risk in specific economic scenarios.

Who Should Consider Investing:

GSPT is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to U.S. companies benefiting from export growth
• Diversification beyond traditional broad market indices

Fundamental Rating Based on AI:

Based on an analysis of financial health, market position, and future prospects, an AI-based system assigns GSPT a fundamental rating of 7.5 out of 10. This indicates a solid overall profile, supported by its unique strategy, outperformance, and moderate expense ratio. However, factors like volatility and sector concentration need ongoing consideration.

Resources and Disclaimers:

Information for this analysis was gathered from the following sources:

• Pacer Financial website: https://www.pacerfinancial.com/etfs/gspt
• ETF.com: https://etf.com/GSPT
• Yahoo Finance: https://finance.yahoo.com/quote/GSPT

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.