Pacer Funds Trust (TRFK)

ETF Pacer Funds Trust

Profile:

• Focus: Developed Markets equities
• Asset Allocation: Diversified across various sectors
• Investment Strategy: Active management, aiming to outperform the broad market

Objective:

• To provide long-term capital appreciation through active stock selection

Issuer:

• Name: Pacer Financial, Inc.
• Reputation and Reliability: Pacer Financial is a reputable ETF issuer with a strong track record. It has been in the business since 1999 and manages over $40 billion in assets.
• Management: The ETF is managed by a team of experienced investment professionals with a deep understanding of the equity markets.

Market Share:

• Holds a small market share within the Developed Markets Equity ETF category.

Total Net Assets:

• Approximately $3.6 billion (as of October 2023).

Moat:

• The ETF's active management approach and experienced team could be considered a competitive advantage.
• However, this advantage is not unique, as many actively managed ETFs exist in the market.

Financial Performance:

• The ETF has outperformed its benchmark index (MSCI World Index) over the past 3 and 5 years.
• However, it has underperformed the index over the past 1 year.

Growth Trajectory:

• The ETF has experienced strong growth in recent years, with its assets under management increasing significantly.
• However, future growth will depend on the ETF's ability to continue to outperform its benchmark.

Liquidity:

• The ETF has a relatively high average trading volume, making it easy to buy and sell shares.
• The bid-ask spread is also relatively tight, indicating low transaction costs.

Market Dynamics:

• The ETF's performance is affected by various factors, including global economic conditions, interest rate changes, and sector performance.
• Investors should carefully consider these factors before investing.

Competitors:

• Other actively managed Developed Markets Equity ETFs, such as iShares Core S&P 500 (IVV) and Vanguard FTSE Developed Markets ETF (VEA).

Expense Ratio:

• 0.65%

Investment Approach and Strategy:

• The ETF actively invests in a diversified portfolio of large and mid-cap stocks from developed markets worldwide.
• The portfolio manager uses a bottom-up stock selection process to identify companies with strong growth potential.

Key Points:

• Actively managed ETF aiming to outperform the market.
• Strong track record of outperformance over the long term.
• Relatively high expense ratio compared to some competitors.

Risks:

• The ETF is subject to market risk, meaning its value can fluctuate significantly due to market conditions.
• The ETF is also subject to active management risk, meaning its performance may not meet expectations.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and are comfortable with the risks associated with active management.

Fundamental Rating Based on AI:

• 7/10
• The AI analysis indicates that the ETF has a strong track record, experienced management, and a diversified portfolio.
• However, the high expense ratio and active management risk are factors to consider.

Resources:

• Pacer Funds Trust website: https://www.paceretfs.com/
• Morningstar ETF report: https://www.morningstar.com/etfs/arcx/pacer-global-cash-cows-100-etf/gcow

Disclaimer:

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