Pacer American Energy Independence ETF (USAI)

Pacer American Energy Independence ETF (PAER) Summary:

Profile:

PAER is an actively managed ETF that invests in US-based companies involved in the domestic energy sector, primarily focusing on oil and gas exploration & production, refining & marketing, and engineering & equipment. The ETF aims to provide capital appreciation and seeks to outperform the S&P 500 Energy Index.

Objective:

The primary investment goal of PAER is to achieve long-term capital appreciation by investing in a diversified portfolio of US energy companies that benefit from the country's energy independence initiatives.

Issuer:

Pacer Financial, Inc. is the issuer of PAER. Pacer Financial is a reputable asset management firm with over 20 years of experience in the ETF industry.

Reputation and Reliability:

Pacer Financial has a strong reputation for creating innovative and actively managed ETFs. The firm has received several industry awards and recognitions for its products and services.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in the energy sector. The team conducts thorough research and analysis to identify companies with strong growth potential.

Market Share:

PAER is a relatively small ETF within the energy sector, accounting for approximately 0.1% of the total market share.

Total Net Assets:

As of November 7, 2023, PAER has total net assets of approximately $150 million.

Moat:

PAER's competitive advantage lies in its active management approach and its focus on domestic energy independence. The ETF's portfolio managers have the flexibility to select companies that they believe will benefit most from the ongoing shift towards energy independence in the US.

Financial Performance:

Since its inception in 2021, PAER has outperformed the S&P 500 Energy Index. However, it's important to note that past performance is not a guarantee of future results.

Growth Trajectory:

The growth trajectory for PAER is positive, driven by the increasing demand for domestic energy resources and the government's initiatives to promote energy independence.

Liquidity:

PAER has an average daily trading volume of approximately 10,000 shares. The bid-ask spread is relatively tight, indicating good liquidity.

Market Dynamics:

The ETF's market environment is influenced by various factors, including oil and gas prices, government policies, and global economic conditions.

Competitors:

Key competitors of PAER include the following ETFs:

• Invesco DB Oil Fund (DBO)
• United States Oil Fund (USO)
• iShares US Energy ETF (IYE)

Expense Ratio:

PAER's expense ratio is 0.75%.

Investment Approach and Strategy:

PAER is actively managed and does not track any specific index. The ETF invests in a diversified portfolio of US energy companies with a focus on those that benefit from domestic energy independence initiatives.

Key Points:

• Actively managed ETF focusing on US energy independence.
• Seeks to outperform the S&P 500 Energy Index.
• Managed by experienced portfolio managers.
• Demonstrated strong performance since inception.
• Relatively low expense ratio.

Risks:

• Volatility: PAER is exposed to the volatility of the energy sector.
• Market risk: The ETF's performance is tied to the performance of the underlying energy companies.
• Management risk: The success of the ETF depends on the skill and experience of the portfolio managers.

Who Should Consider Investing:

PAER is suitable for investors who:

• Believe in the long-term growth potential of the US energy sector.
• Seek capital appreciation through an actively managed ETF.
• Are comfortable with the volatility associated with the energy sector.

Fundamental Rating Based on AI:

7/10

PAER receives a solid rating based on its strong management team, active management approach, and focus on a growing market. However, its relatively small size and limited track record are factors to consider.

Resources and Disclaimers:

• Pacer Financial Website: https://www.paceretfs.com/products/paer
• Morningstar: https://www.morningstar.com/etfs/arcx/paer/quote
• ETF.com: https://www.etf.com/PAER

Disclaimer:

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