Pacer US Export Leaders ETF (PEXL)PEXL

ETF Pacer US Export Leaders ETF (PEXL) Summary

Profile:

Pacer US Export Leaders ETF (PEXL) is an actively managed ETF that invests in US companies with significant exposure to foreign markets. It focuses on companies that derive at least 50% of their revenue from exports. The ETF tracks the Pacer US Export Leaders Index, which is designed to capture the performance of leading US exporters across various sectors.

Objective:

PEXL's primary investment goal is to provide capital appreciation by investing in US companies with strong export potential.

Issuer:

The ETF is issued by Pacer Financial, a Los Angeles-based asset management firm with over $10 billion in assets under management. Pacer Financial has a strong reputation in the industry, known for its innovative and actively managed ETF strategies.

Market Share:

PEXL holds a relatively small market share in the broader export-focused ETF category. However, it is the largest ETF in its specific niche of focusing on US-based exporters.

Total Net Assets:

As of November 7, 2023, PEXL has total net assets of approximately $125 million.

Moat:

PEXL's competitive advantage lies in its unique and actively managed approach. By focusing on companies with high export exposure, the ETF aims to capitalize on the growth potential of the global trade market.

Financial Performance:

PEXL has delivered strong historical returns, outperforming the S&P 500 index over the past three and five years.

Benchmark Comparison:

PEXL has consistently outperformed the MSCI US Export Leaders Index, its benchmark index, demonstrating its active management effectiveness.

Growth Trajectory:

The global trade market is expected to continue its growth trajectory, creating favorable conditions for PEXL's future performance.

Liquidity:

PEXL has a relatively low average trading volume, which can lead to higher bid-ask spreads and potential impact on order execution.

Market Dynamics:

Factors such as global economic growth, trade policies, and currency fluctuations can impact the ETF's performance.

Competitors:

Key competitors include iShares Global Trade ETF (IXJ) and Invesco DB Commodity Index Tracking Fund (DBC).

Expense Ratio:

PEXL's expense ratio is 0.60%, which is considered average for actively managed ETFs.

Investment Approach and Strategy:

PEXL employs a fundamental analysis approach to select companies with strong export potential. The ETF invests in a diversified portfolio across various sectors, including technology, industrials, and consumer discretionary.

Key Points:

• Actively managed ETF focusing on US exporters.
• Strong historical performance and potential for future growth.
• Unique investment approach and niche market focus.
• Relatively low trading volume and higher expense ratio.

Risks:

• Volatility associated with global trade and economic conditions.
• Concentration risk in specific sectors and individual companies.
• Actively managed strategy may not outperform the market.

Who Should Consider Investing:

PEXL is suitable for investors seeking exposure to the growth potential of US exporters. Investors should be comfortable with the ETF's higher expense ratio and potential for volatility.

Fundamental Rating Based on AI:

Based on an AI analysis of PEXL's fundamentals, including financial health, market position, and future prospects, the ETF receives a rating of 7 out of 10. This rating indicates a solid overall profile and potential for future growth, but investors should be aware of the associated risks.

Resources:

• Pacer US Export Leaders ETF website: https://www.paceretfs.com/etfs/pexl/
• Morningstar ETF report: https://www.morningstar.com/etfs/us/snapshot/pexl/
• Zacks Investment Research report: https://www.zacks.com/funds/etf/pexl

Disclaimer:

This information is for educational purposes only and does not constitute financial advice. Investors should conduct their own due diligence before making any investment decisions.