Pacer American Energy Independence ETF (USAI)

Overview

The Pacer American Energy Independence ETF (AMER) is designed to provide investors with exposure to companies that are positioned to benefit from increased American energy production and independence. The fund focuses on the energy sector, particularly companies involved in exploration, production, and services related to oil, natural gas, and other domestic energy sources.

Reputation and Reliability

Pacer ETFs is a reputable issuer known for its factor-based ETFs, offering a range of strategies designed to provide distinct market exposures. They have a growing presence in the ETF market.

Management Expertise

Pacer ETFs employs experienced investment professionals who focus on developing and managing ETFs with clear, rules-based methodologies. Specific portfolio managers are assigned to each ETF, leveraging their expertise in their respective asset classes.

Goal

The primary goal of the Pacer American Energy Independence ETF is to track the performance of an index that measures the investment results of companies engaged in the production and supply of American energy.

Investment Approach and Strategy

Strategy: The ETF aims to track the Pacer US Energy Independence Index, which selects companies based on criteria related to energy production and profitability within the United States.

Composition The ETF primarily holds a portfolio of U.S. equity securities of companies operating in the energy sector, including oil and gas exploration and production, oil and gas drilling, and oil and gas equipment and services.

Market Share: Specific market share data for AMER within its niche sector is not readily available in a standardized format, but it operates within a competitive segment of the energy ETF market.

Total Net Assets (AUM): 185000000

Key Competitors

• Vanguard Energy ETF (VDE)
• iShares U.S. Oil & Gas Exploration & Production ETF (IEO)
• Energy Select Sector SPDR Fund (XLE)

Competitive Landscape

The energy ETF market is dominated by large, established sector-specific ETFs. AMER's competitive advantage lies in its specific focus on American energy independence, potentially offering a more targeted approach than broader energy sector funds. However, it faces challenges from the scale and liquidity of its larger competitors.

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Benchmark Comparison: The Pacer US Energy Independence Index (the ETF's benchmark) has historically shown performance closely aligned with broader energy sector indices, with variations due to its specific selection criteria.

Expense Ratio: 0.0069

Average Trading Volume

The ETF exhibits moderate average daily trading volume, indicating reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for AMER is typically within an acceptable range for an ETF of its size and liquidity, though it can widen during periods of high market volatility.

Market Environment Factors

The ETF's performance is heavily influenced by global oil and gas prices, geopolitical events impacting supply and demand, regulatory changes affecting the energy industry, and broader economic conditions driving energy consumption.

Growth Trajectory

The ETF's growth trajectory is tied to the performance of the U.S. energy sector and the increasing focus on domestic energy production. Changes in strategy would likely involve adjustments to the underlying index methodology based on evolving energy market dynamics.

Competitive Edge

AMER's primary competitive advantage is its niche focus on companies benefiting from American energy independence. This targeted approach allows investors to specifically gain exposure to domestic energy production drivers. Its rules-based index methodology provides transparency and consistency in its holdings, differentiating it from more broadly diversified energy ETFs.

Volatility

The ETF exhibits historical volatility characteristic of the energy sector, often correlated with commodity price fluctuations. Short-term price swings can be significant.

Market Risk

The ETF is exposed to market risk related to the volatility of oil and natural gas prices, geopolitical instability in energy-producing regions, and shifts in energy policy and environmental regulations. Additionally, it is subject to equity market risk common to all stock-based ETFs.

Ideal Investor Profile

The ideal investor for AMER is one seeking targeted exposure to the U.S. energy sector with a focus on domestic production and energy independence. Investors should have a moderate to high risk tolerance and a belief in the long-term prospects of American energy.

Market Risk

This ETF is best suited for long-term investors who are looking to diversify their portfolios with a specific allocation to the energy sector and who can withstand the inherent volatility of commodity-linked equities. It is less suitable for very short-term traders or those seeking broad market diversification.

The Pacer American Energy Independence ETF (AMER) offers targeted exposure to U.S. energy companies, aiming to capitalize on domestic production trends. While facing competition from larger energy ETFs, its niche focus on energy independence is a key differentiator. Investors should be prepared for the sector's inherent volatility, which is closely tied to commodity prices and geopolitical factors. AMER is suitable for long-term investors with a higher risk tolerance seeking specific exposure to the American energy landscape.

Data Sources:

• Pacer ETFs Official Website
• Financial Data Providers (e.g., Morningstar, ETF.com)
• Securities and Exchange Commission (SEC) Filings

Disclaimers:

This information is for educational purposes only and does not constitute investment advice. ETF performance can fluctuate significantly. Investors should conduct their own research and consult with a qualified financial advisor before making investment decisions. Market share data is an estimate and subject to change.