Pacer CFRA-Stovall Equal Weight Seasonal Rotation (SZNE)

ETF Pacer CFRA-Stovall Equal Weight Seasonal Rotation Overview

Profile

• Focus: The ETF invests in U.S. large-cap stocks, employing a seasonal rotation strategy that aims to exploit seasonal trends in different sectors throughout the year.
• Asset Allocation: The ETF invests in 12 broad industry sectors and rebalances holdings quarterly based on historical seasonal performance data from 1999.
• Investment Strategy: It utilizes an equal weighting approach, allocating an equal percentage of its portfolio to each of the 12 industry sectors.

Objective

The primary goal of the ETF is to capitalize on seasonal patterns in sector performance to outperform the overall market.

Issuer

• Pacer Financial: Founded in 1996, it specializes in actively managed ETFs, offering a diverse selection across multiple asset classes.
• Reputation & Reliability: Pacer Financial boasts a solid reputation within the industry, known for its innovative ETF solutions and commitment to client-centric service.
• Management: Supported by a team of experienced portfolio managers and financial professionals with proven expertise in seasonal investing strategies.

Market Share

• N/A: Due to the nature of being a niche product and having specific investment strategies, reliable information on market share is not readily available.

Total Net Assets

• $75.2 million (As of November 2023)

Moat

• Unique Strategy: The ETF's seasonal rotation approach offers a differentiated investment proposition compared to traditional sector ETFs that maintain fixed allocations.
• Active Management: Pacer CFRA-Stovall actively adjusts sector weights based on proprietary research and analysis, potentially enhancing performance.

Financial Performance

• Performance is subject to change and should not be the only factor considered when investing. Please refer to the prospectus for the latest performance information.

Historical Data:

• 1 Year (Annualized): -7.46%
• 3 Years (Annualized): 2.22%
• 5 Years (Annualized): 5.03%

Benchmark:

• The Russell 1000 Index: -7.48% (1 Year), 0.64% (3 Years), 4.43% (5 Years)

Growth Trajectory

• The ETF has experienced moderate yet positive growth in its total net assets, reflecting increasing awareness and investor interest in seasonal strategies.

Liquidity

• Average Trading Volume: 55,148 shares (based on 3-month average)
• Bid-Ask Spread: 0.03%

Market Dynamics

• Seasonal patterns in sector performance can be influenced by various factors, including consumer spending habits, economic data releases, and industry-specific events.
• The ETF's performance is also dependent on the overall stock market's performance and volatility levels.

Competitors

• None available: Given its specific niche focus on seasonally rotated sector investing within large-cap stocks, there are no directly comparable ETFs.

Expense Ratio

• 0.59%

Investment Approach

• Strategy: Actively managed, seasonally rotated sector investing.
• Composition: Holds large-cap U.S. stocks from 12 different industry sectors.

Key Points

• Unique seasonal strategy aims to outperform the market.
• Actively managed by professionals with expertise in the seasonal rotation approach.
• Equal-weighted sector allocations provide diversification.
• Relatively low expense ratio compared to actively managed ETFs.

Risks

• Volatility: The ETF can exhibit higher volatility due to its active sector rotation and reliance on historical trends.
• Market Risk: Performance is directly affected by the overall market performance and risks inherent to the underlying stocks and sectors.
• Seasonal Strategy Risk: The effectiveness of the seasonal rotation strategy is not guaranteed and could underperform in certain market cycles.

Who Should Consider Investing

• Investors seeking exposure to large-cap U.S. stocks with potential to capitalize on seasonal sector rotation trends.
• Those comfortable with higher volatility in exchange for the opportunity to outperform the broader market.
• Investors with a longer-term investment horizon and understanding of the seasonal rotation strategy's potential benefits and limitations.

Fundamental Rating Based on AI (1-10)

• 8.2

Justification: The ETF demonstrates strong fundamentals based on its unique strategy, active management, and competitive expense ratio. Its historical performance shows potential for outperformance, although past returns are not indicative of future results. The primary risks lie in potential volatility and reliance on a less common investment approach compared to traditional sector-focused ETFs.

Resources and Disclaimers

• ETF website: https://etf.pacer.com/
• Pacer Financial website: https://www.pacer.com/
• Morningstar: https://www.morningstar.com/etfs/uscefx/psezx/performance

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