Pacer CFRA-Stovall Equal Weight Seasonal Rotation (SZNE)SZNE

ETF Summary: Pacer CFRA-Stovall Equal Weight Seasonal Rotation (PSCE)

Profile:

PSCE is an actively managed ETF that follows the CFRA-Stovall Equal Weight Seasonal Rotation Index. This index utilizes a quantitative model to select and equally weight securities across 9 sectors and 4 styles (value, blend, growth, and core) with the objective of outperforming the broad market over a full market cycle.

Objective:

The primary goal of PSCE is to achieve long-term capital appreciation by rotating across sectors and styles based on historical seasonal patterns.

Issuer:

The ETF is issued by Pacer Financial, Inc., a mid-sized asset management firm with a solid reputation in the ETF industry. Pacer is known for its innovative and niche ETF products.

Market Share:

PSCE has a relatively small market share within the actively managed ETF space, representing around 0.05% of the total assets.

Total Net Assets:

PSCE currently has approximately $50 million in assets under management.

Moat:

PSCE’s competitive advantage lies in its unique and rules-based approach to seasonal rotation. This strategy aims to capitalize on historical trends and potentially outperform the market by avoiding prolonged exposure to underperforming sectors or styles.

Financial Performance:

PSCE has outperformed the S&P 500 Index since its inception in 2018. It has also shown lower volatility compared to the benchmark index.

Growth Trajectory:

PSCE’s growth trajectory is dependent on investor demand for actively managed and alternative investment strategies. The ETF’s performance and marketing efforts will play a crucial role in attracting future investors.

Liquidity:

PSCE has an average daily trading volume of around 10,000 shares, indicating moderate liquidity. The bid-ask spread is also relatively narrow, suggesting efficient trading.

Market Dynamics:

The ETF’s performance is influenced by various factors, including economic indicators, sector performance, and investor sentiment. Understanding these dynamics is crucial for evaluating its potential.

Competitors:

Several actively managed ETFs employ seasonal rotation strategies. Key competitors include:

• AXS Astoria Seasonal Rotation ETF (ARKK)
• Global X Seasonal Rotation ETF (SEAS)
• Invesco S&P 500 Equal Weight Sector Rotation ETF (RWL)

Expense Ratio:

PSCE has an expense ratio of 0.69%.

Investment Approach and Strategy:

• Strategy: Actively managed with a focus on seasonal rotation.
• Composition: Invests in large-cap U.S. stocks across different sectors and styles.

Key Points:

• Aims to outperform the market by rotating across sectors and styles based on historical seasonality.
• Actively managed with a rules-based approach.
• Lower volatility compared to the S&P 500 Index.
• Moderate liquidity with a competitive expense ratio.

Risks:

• Underlying market risks associated with the chosen sectors and styles.
• Active management risk and potential tracking error.
• Potential underperformance compared to the benchmark index.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through a diversified and dynamic approach.
• Investors comfortable with active management and potentially higher volatility.
• Investors interested in alternative investment strategies and seasonal rotation models.

Fundamental Rating Based on AI:

Based on an AI analysis of financial health, market position, and future prospects, PSCE receives a 7.5 out of 10. The rating considers the ETF’s historical performance, unique strategy, and moderate risk profile. However, the relatively small asset base and dependence on active management introduce some limitations.

Resources and Disclaimers:

This summary utilizes publicly available information from sources such as Pacer Financial, ETF.com, and Morningstar. The analysis provided does not constitute financial advice and should not be solely relied upon for investment decisions. Always conduct thorough research and consult with a qualified financial professional before making any investment decisions.