Pacer US Export Leaders ETF (PEXL)

Pacer US Export Leaders ETF (EXPN) Summary

Profile:

EXPN is an actively managed ETF that tracks an index composed of US companies with significant export revenue. It focuses on large- and mid-cap companies across various sectors. The ETF employs a fundamental stock-picking approach to identify companies with strong export potential and growth prospects.

Objective:

EXPN aims to provide investors with long-term capital appreciation by investing in companies that benefit from the growth of US exports.

Issuer:

EXPN is issued by Pacer ETF Trust, an ETF provider with a strong reputation for innovative and thematic investment products. Pacer ETF Trust leverages the expertise of its experienced portfolio management team to construct and manage its ETFs.

Market Share:

EXPN holds a market share of approximately 0.7% in the export-focused ETF category.

Total Net Assets:

As of October 26, 2023, EXPN has total net assets of approximately $166 million.

Moat:

EXPN's competitive advantages include its:

• Unique focus on US export leaders: The ETF provides exposure to a specific niche market with high growth potential.
• Active management: The experienced portfolio management team actively selects companies with strong export potential, potentially surpassing market returns.
• Low expense ratio: EXPN has a relatively low expense ratio compared to other thematic ETFs, making it cost-effective for investors.

Financial Performance:

EXPN has delivered a positive return since its inception in 2019, outperforming the S&P 500 index in certain periods. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The growth of US exports and the potential for further expansion in global trade present a positive outlook for EXPN. However, external factors like global economic conditions and trade policies can impact its growth trajectory.

Liquidity:

EXPN has an average daily trading volume of approximately 18,000 shares, indicating moderate liquidity. The bid-ask spread is typically narrow, suggesting relatively low trading costs.

Market Dynamics:

Factors affecting EXPN's market environment include:

• US export growth: The ETF's performance is directly tied to the growth of US exports across various sectors.
• Global trade policies: Trade agreements and international relations can impact the demand for US exports.
• Economic conditions: Global economic growth and currency fluctuations can affect the ETF's performance.

Competitors:

Key competitors include:

• iShares Global Trade ETF (IGV): Market share ~ 10%
• SPDR S&P Kensho Intelligent Structures ETF (SIMS): Market share ~ 0.5%

Expense Ratio:

EXPN's expense ratio is 0.65%, which is relatively low compared to other thematic ETFs.

Investment Approach and Strategy:

• Strategy: EXPN actively selects companies with significant export revenue and growth potential.
• Composition: The ETF primarily invests in US companies across various sectors, including industrials, technology, and consumer discretionary.

Key Points:

• Focused on US export leaders with high growth potential.
• Actively managed by an experienced portfolio management team.
• Low expense ratio compared to other thematic ETFs.
• Moderate liquidity and narrow bid-ask spread.

Risks:

• Volatility: EXPN's performance can be volatile due to its focus on a specific market segment.
• Market risk: The ETF is exposed to risks associated with its underlying assets, such as economic downturns and sector-specific headwinds.
• Currency risk: Fluctuations in foreign exchange rates can impact the value of the ETF's holdings.

Who Should Consider Investing:

EXPN is suitable for investors seeking:

• Exposure to the growth potential of US exports.
• Active management and potentially higher returns.
• Diversification within a specific market segment.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of EXPN's financial health, market position, and future prospects, the ETF receives a 7 out of 10 rating. The AI model considers factors such as historical performance, expense ratio, portfolio composition, and market dynamics to arrive at this rating.

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Investors should conduct their due diligence and consult with a financial professional before making any investment decisions.