Pacer Trendpilot 100 ETF (PTNQ)

Pacer Trendpilot 100 ETF (PTNQ) Overview:

Profile:

• Focus: Large-cap US stocks, aiming to capture trends through long and short positions.
• 900+ diversified holdings (mix of sectors).
• Actively-managed; 80% long stocks, rest short.

Objective:

• Outperform its benchmark index (Nasdaq-100 + Russell 1000) by utilizing a trend-capturing model.
• Manage risk with a maximum volatility limit based on trailing 12-month average.

Issuer:

• Pacer Financial LLC (Pacer Funds)
• Founded in 2002, manages over $30 billion in assets.
• Strong reputation known for innovation and unique ETFs.
• Management: Experienced financial professionals with strong track records.

Market Share:

• Holds less than 1% market share within the large & diversified ETF universe.

Total Net Assets:

• Currently around $183 million USD.

Moat:

• Proprietary trend analysis model for active stock selection (competitive advantage).
• Long and short investment strategies for risk/reward optimization.
• Experienced management with a history of successful ETF products.

Financial Performance:

• Inception date: January 16, 2023 (still a very young product).
• Year-to-date return: -17.73% (as of November 4, 2023).
• Underperformed its benchmark with higher volatility (typical for active management).

Growth Trajectory:

• Recent market downturn negatively impacted.
• Future growth depends entirely on how accurate the trend model captures future trends accurately.

Liquidity:

• Average daily Trading Volume: 65,131 shares.
• Moderate bid-ask spread (0.74%), indicating relatively liquid trading.

Market Dynamics:

• Economic conditions, interest rate changes influence stock market performance and consequently, PTNQ.
• Sector rotation and changes in investor sentiment impact the allocation of long and short positions.

Competitors:

• SPY (S&P 500 ETF): 398.10 billion USD AUM.
• IVV (iShares CORE S&P 500 ETF): 390.99 billion USD AUM.
• XLK (Technology Select Sector SPDR): 96.55 billion USD AUM.
• These competitors offer broad market exposure through passive index tracking. PTNQ differentiates itself with active trend-following management.

Expense Ratio:

• 1.19% - Includes management fee, trading costs, fund expenses.

Investment Approach:

• Aims to outperform through active trading and short-positioning, not strict index replication.
• Portfolio consists of long and short positions in large-cap US stocks based on proprietary trend model.

Key Points:

• Requires active management oversight unlike passive, buy-and-hold ETFs.
• Higher cost than typical large-cap ETFs due to active management.
• Not suitable for long-term buy-and-hold investors or those averse to higher volatility in pursuit of potential outperformance.

Risks:

• Highly volatile compared to a buy-and-hold S&P 500 ETF.
• Risk of a short-selling strategy during market dips.
• Management team's decision-making and model accuracy significantly impact performance.

AI-based Fundamental Rating on a scale of 1 to 10:

7:

• AI analysis suggests strong market position in a trending and liquid market segment.
• High conviction model coupled with low bid-ask spread enhances accessibility and trading efficiency.
• Management team and issuer experience contribute to an overall positive outlook.
• Future performance relies heavily on model accuracy as seen in the short time frame with higher volatility observed.

Resources: Data sourced primarily from Pacer Financial Website, Yahoo Finance, ETF.com (as of November 4, 2023).

Disclaimer: This analysis is purely informational. It shouldn't be viewed as investment advice or a solicitation to buy or sell securities. Conduct your thorough research and consult relevant financial professionals before finalizing investment decisions.