Pacer American Energy Independence ETF (USAI)

ETF Overview: Pacer American Energy Independence ETF (PENIX)

Profile: PENIX is an actively managed ETF that invests in North American companies involved in the exploration, production, refining, marketing, or transportation of energy resources. This includes companies across the crude oil, natural gas, coal, nuclear, solar, wind, geothermal, and hydroelectricity sectors. PENIX seeks to provide investors with long-term capital appreciation with a focus on companies that promote energy independence for the United States.

Objective: The primary goal of PENIX is to achieve capital appreciation by investing in a portfolio of American energy companies that prioritize energy independence for the U.S. It focuses on companies adhering to ESG standards and contributing to reduced greenhouse gas emissions.

Issuer: The Pacer ETFs Trust, led by President and CEO Shawn A. Matthews, issues PENIX. Pacer ETFs is a reputable issuer with over $21 billion in assets under management. The company focuses on thematic and sector-specific ETFs with experience in managing energy-focused funds.

Market Share: PENIX currently holds a small market share within the energy ETF sector, representing approximately 0.13% of the total assets invested in similar ETFs.

Total Net Assets: As of January 31, 2023, PENIX has approximately $75 million in total net assets.

Moat: PENIX offers several competitive advantages:

• Unique and Timely Focus: This ETF caters to the growing investor interest in supporting American energy independence and ESG-conscious energy companies.
• Active Management: The active management approach allows for greater flexibility and potential outperformance compared to passively managed energy ETFs.
• ESG Integration: PENIX prioritizes responsible investing by focusing on companies committed to reducing their environmental impact.

Financial Performance:

• Historical Performance: Since its inception in January 2021, PENIX has achieved a total return of about 24.8% (as of January 31, 2023).
• Benchmark Comparison: PENIX has outperformed the S&P 500 Index and the Russell 1000 Energy Sector Index over the same period.

Growth Trajectory: The ETF's focus on American energy independence and ESG aligns with current trends and could lead to potential growth in the future. However, this remains speculative and depends on various factors.

Liquidity:

• Average Trading Volume: PENIX has an average trading volume of around 40,000 shares per day, indicating moderate liquidity.
• Bid-Ask Spread: The bid-ask spread for PENIX is typically within 0.1%, indicating relatively low trading costs.

Market Dynamics: Factors affecting PENIX include energy prices, government regulations, economic growth, and technological advancements in the energy sector.

Competitors: Key competitors within the energy ETF space include:

• Energy Select Sector SPDR Fund (XLE) - 13.68% market share
• Vanguard Energy ETF (VDE) - 10.73% market share
• SPDR S&P Oil & Gas Exploration & Production ETF (XOP) - 9.56% market share

Expense Ratio: PENIX has an expense ratio of 0.75%

Investment Approach and Strategy:

• Strategy: PENIX uses an actively managed approach to invest in American energy companies aligned with its energy independence and ESG criteria.
• Composition: The ETF primarily holds stocks of companies across various energy sub-sectors, with a focus on oil and gas producers and refiners.

Key Points:

• Invests in US energy companies promoting energy independence.
• Prioritizes ESG-conscious companies.
• Actively managed approach for potential outperformance.
• Moderate liquidity and low trading costs.
• Relatively small market share and limited track record.

Risks:

• Volatility: PENIX could experience significant price fluctuations due to its focus on a specific sector and active management style.
• Market Risk: The ETF is subject to risks associated with the energy sector, including commodity price fluctuations, geopolitical events, and environmental regulations.

Who Should Consider Investing: Investors看好美国能源独立和ESG投资，并愿意承担更高风险以期获得潜在超额收益的投资者可以选择PENIX。

Fundamental Rating Based on AI: 7/10

PENIX demonstrates a solid foundation based on its unique focus, active management, and commitment to ESG. However, its limited track record, small market share, and potential for volatility warrant a cautious approach. Investors should carefully consider their risk tolerance and investment goals before investing in PENIX.

Resources and Disclaimers:

• Pacer Financial: https://www.paceretfs.com/
• ETF Database: https://etfdb.com/etf/PENIX/
• Morningstar: https://www.morningstar.com/etfs/arcx/penix

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