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

Overview

The Pacer Metaurus US Large Cap Target Dividend 400 ETF (DIVD) seeks to provide investment results that generally correspond to the price and yield performance of the Metaurus US Large Cap Dividend Yield Target 400 Index. The fund focuses on large-cap U.S. equities with the potential for high dividend yields, rebalancing quarterly.

Reputation and Reliability

Pacer ETFs is a well-established issuer known for its rules-based, strategy-driven ETFs. They have a solid track record and a growing presence in the ETF market.

Management Expertise

Pacer ETFs has a dedicated investment team with experience in quantitative analysis and ETF management.

Goal

To track the Metaurus US Large Cap Dividend Yield Target 400 Index, providing exposure to dividend-paying large-cap stocks.

Investment Approach and Strategy

Strategy: The fund aims to replicate the performance of the Metaurus US Large Cap Dividend Yield Target 400 Index.

Composition The ETF primarily holds stocks of U.S. large-cap companies screened for dividend yield.

Market Share: DIVD has a moderate market share within the dividend ETF space.

Total Net Assets (AUM): 177977000

Key Competitors

• Vanguard High Dividend Yield ETF (VYM)
• Schwab US Dividend Equity ETF (SCHD)
• iShares Select Dividend ETF (DVY)

Competitive Landscape

The dividend ETF market is competitive, with several well-established funds. DIVD differentiates itself through its index methodology, which focuses on targeting companies with specific dividend yields. VYM and SCHD are larger, more liquid options with broader market exposure, while DVY focuses on companies with a history of dividend payments. DIVD may appeal to investors seeking a more targeted approach to dividend investing.

Historical Performance: Historical performance data is available but varies depending on the period. Refer to official fund documents for accurate figures.

Benchmark Comparison: Performance should be compared to the Metaurus US Large Cap Dividend Yield Target 400 Index to assess tracking effectiveness.

Expense Ratio: 0.08

Average Trading Volume

The average trading volume of DIVD is moderate, indicating reasonable liquidity.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting sufficient trading activity.

Market Environment Factors

Economic growth, interest rates, and dividend policies of companies within the index influence DIVD's performance.

Growth Trajectory

Growth depends on the performance of the underlying index and investor demand for dividend-focused strategies; future holdings may change depending on dividend policies of the targeted companies.

Competitive Edge

DIVD's competitive edge lies in its unique index methodology, designed to target specific dividend yields. This strategy may appeal to investors seeking consistent income. However, this targeted approach can also lead to higher concentration risk compared to broader dividend ETFs. The quarterly rebalancing helps maintain the fund's focus on target yields, potentially outperforming in certain market conditions.

Volatility

DIVD's volatility is likely to be similar to that of the broader equity market, with potential for fluctuations based on dividend payouts and economic conditions.

Market Risk

Market risk is present due to the fund's exposure to equities. Sector concentration can also pose a risk if specific sectors underperform.

Ideal Investor Profile

DIVD is suitable for income-seeking investors, particularly those looking for targeted exposure to high-dividend-yielding large-cap stocks.

Market Risk

This ETF is suitable for long-term investors seeking dividend income, but it may also be used by active traders looking to capitalize on short-term dividend opportunities.

The Pacer Metaurus US Large Cap Target Dividend 400 ETF aims to provide targeted exposure to high-dividend-yielding large-cap stocks through a unique index methodology. Its competitive advantage lies in its focus on specific dividend yields, but its targeted approach also introduces concentration risk. DIVD suits income-seeking investors with a long-term horizon, offering a differentiated approach compared to broader dividend ETFs. Understanding its specific index strategy and inherent risks is crucial before investing.

Data Sources:

• Pacer ETFs website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.