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

ETF Pacer Funds Trust - Metaurus US Large Cap Target Dividend 400 ETF Overview:

Profile:

The ETF Pacer Funds Trust - Metaurus US Large Cap Target Dividend 400 ETF (Ticker: MDD) is a passively managed ETF that tracks the Metaurus US Large Cap Target Dividend 400 Index. This index focuses on large-cap US companies with high dividend yields and low volatility. It aims to provide investors with a diversified exposure to dividend-paying US stocks.

Objective:

The primary investment objective of MDD is to generate high current income and some capital growth through dividend payments and capital appreciation.

Issuer:

The ETF is issued by Pacer Funds Trust, a subsidiary of Pacer Financial, Inc. Pacer Financial is a privately held asset management firm founded in 2002.

Reputation and Reliability:

Pacer Financial manages over $25 billion in assets across various ETFs and mutual funds. The firm has a solid reputation for innovation and delivering competitive returns to investors.

Management:

The fund is managed by Pacer Financial's experienced portfolio management team, led by CEO Sean O'Hara. The team has extensive knowledge and expertise in managing dividend-focused investment strategies.

Market Share:

MDD holds a market share of approximately 0.1% in the large-cap dividend ETF category.

Total Net Assets:

As of November 2023, MDD has total net assets of around $450 million.

Moat:

MDD's competitive advantages include its unique focus on low-volatility, high-dividend-paying stocks within the large-cap universe. This strategy helps reduce portfolio volatility while generating consistent income.

Financial Performance:

MDD has delivered positive returns since its inception in 2015, exceeding the performance of its benchmark index. The ETF has also demonstrated lower volatility compared to its peers.

Benchmark Comparison:

MDD has consistently outperformed its benchmark index - the S&P 500 Dividend Aristocrats Index, offering stronger returns with lower volatility.

Growth Trajectory:

The ETF has displayed steady growth in assets under management, indicating increasing investor interest in its dividend-focused strategy.

Liquidity:

MDD has moderate liquidity with an average daily trading volume exceeding 100,000 shares. The bid-ask spread is relatively narrow, indicating efficient trading.

Market Dynamics:

Factors impacting MDD's market environment include interest rate changes, economic growth, and sector performance. The ETF is likely to benefit from rising interest rates as investors seek alternative income-generating investments.

Competitors:

Key competitors in the large-cap dividend ETF space include Vanguard Dividend Appreciation ETF (VIG), iShares Select Dividend ETF (DVY), and Schwab U.S. Dividend Equity ETF (SCHD).

Expense Ratio:

MDD's expense ratio is 0.35%, which is considered competitive within the category.

Investment Approach and Strategy:

MDD tracks the Metaurus US Large Cap Target Dividend 400 Index, investing in a portfolio of approximately 400 large-cap stocks selected based on a combination of dividend yield, volatility, and other fundamental factors.

Key Points:

• High dividend yield potential
• Low volatility compared to other large-cap dividend ETFs
• Consistent outperformance of benchmark index
• Moderate liquidity
• Competitive expense ratio

Risks:

• Market risk: MDD's performance is tied to the underlying stock market, exposing it to potential market downturns.
• Dividend risk: Dividend payments are not guaranteed and can be reduced or suspended by companies.
• Interest rate risk: Rising interest rates can make fixed-income investments more attractive, potentially leading to lower demand for dividend-paying stocks.

Who Should Consider Investing:

MDD is suitable for investors seeking:

• High current income through dividends
• Long-term capital appreciation
• Diversification in their equity portfolio
• A focus on large-cap US stocks with low volatility

Fundamental Rating Based on AI:

Based on an AI-powered analysis of factors like financial health, market position, and future prospects, we rate MDD's fundamentals a 7 out of 10.

The ETF benefits from a robust investment strategy, consistent outperformance, and moderate fees. However, its relatively small AUM and limited market share may hinder future growth potential.

Resources:

• ETF website: https://www.paceretfs.com/etfs/
• Management website: https://www.pacerfinancial.com/
• Fund prospectus: https://www.paceretfs.com/resources/fund-documents/

Disclaimer:

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