Pacer Funds Trust - Metaurus US Large Cap Target Dividend 400 ETF (QDPL)QDPL

ETF Pacer Funds Trust - Metaurus US Large Cap Target Dividend 400 ETF (DIVY)

Profile:

DIVY is an ETF that tracks the Metaurus US Large Cap Target Dividend 400 Index. It invests in 400 large-cap US companies selected for their high dividend yield and value characteristics. The ETF employs a quantitative strategy to identify and select stocks with strong fundamentals and a history of consistent dividend payments.

Objective:

The primary investment goal of DIVY is to generate high current income through dividend payments and capital appreciation over the long term.

Issuer:

Pacer Funds Trust: Pacer Financial, Inc. is the investment advisor for the ETF. Pacer Financial is a mid-sized asset management firm with a focus on ETFs and mutual funds. The firm has a strong reputation and a track record of success in the industry.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and dividend investing. The team utilizes a proprietary research process to identify and select stocks for the portfolio.

Market Share:

DIVY has a relatively small market share compared to other large-cap dividend ETFs. However, it has grown in popularity in recent years due to its unique investment strategy and strong performance.

Total Net Assets:

As of November 7, 2023, DIVY has approximately $1.27 billion in total net assets.

Moat:

• Unique Strategy: DIVY's focus on value and high dividend yield sets it apart from many other large-cap dividend ETFs.
• Quantitative Approach: The ETF's use of a quantitative selection process helps to ensure consistent performance and objectivity.
• Experienced Management: The portfolio management team has a strong track record and expertise in dividend investing.

Financial Performance:

DIVY has historically outperformed its benchmark index, the S&P 500 Index, over various timeframes. The ETF has also generated a consistently high dividend yield.

Growth Trajectory:

DIVY has experienced steady growth in assets and performance over the past few years. The ETF's unique strategy and strong track record suggest potential for continued growth in the future.

Liquidity:

• Average Trading Volume: DIVY has an average daily trading volume of approximately 400,000 shares, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread for DIVY is typically around 0.05%, which is relatively low and indicates tight market pricing.

Market Dynamics:

• Economic Indicators: Rising interest rates and inflation could put pressure on dividend-paying stocks and make it more challenging for DIVY to outperform.
• Sector Growth Prospects: The large-cap value sector, where DIVY invests, may experience growth if the overall market recovers.
• Market Conditions: Volatile market conditions could lead to increased volatility for DIVY, potentially impacting its returns.

Competitors:

• Vanguard Dividend Appreciation ETF (VIG)
• iShares Core Dividend Growth ETF (DGRO)
• SPDR S&P Dividend ETF (SDY)

Expense Ratio:

DIVY has an expense ratio of 0.55%, which is relatively low compared to other large-cap dividend ETFs.

Investment Approach and Strategy:

• Strategy: DIVY tracks the Metaurus US Large Cap Target Dividend 400 Index, which selects stocks based on value, dividend yield, and other quantitative factors.
• Composition: The ETF primarily invests in large-cap US stocks across various sectors, with a focus on companies with strong dividend track records.

Key Points:

• High dividend yield potential.
• Focus on value and fundamentals.
• Quantitative investment approach.
• Experienced management team.
• Competitive expense ratio.

Risks:

• Volatility: DIVY's performance can be volatile, especially during periods of market turbulence.
• Market Risk: The ETF is subject to risks associated with the overall stock market, including economic downturns and interest rate changes.
• Dividend Risk: Companies may reduce or suspend dividend payments, which could impact DIVY's income stream.

Who Should Consider Investing:

• Investors seeking high current income through dividends.
• Investors with a long-term investment horizon.
• Investors who believe in the value investing approach.

Fundamental Rating Based on AI: 8/10

DIVY receives a strong rating based on its unique investment strategy, strong performance, and experienced management team. However, its relatively small size and potential for volatility are factors to consider.

Resources and Disclaimers:

• ETF Database: https://etfdb.com/etf/DIVY/
• Pacer Financial: https://www.pacer.com/
• Yahoo Finance: https://finance.yahoo.com/quote/DIVY/
• Morningstar: https://www.morningstar.com/etfs/arcx/divy/performance

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