Pacer American Energy Independence ETF (USAI)

Overview

The Pacer American Energy Independence ETF (USOI) aims to provide investors with exposure to North American energy companies with a high degree of energy independence. The ETF focuses on companies that are less reliant on imported oil and natural gas. The investment strategy involves tracking the performance of the American Energy Independence Index.

Reputation and Reliability

Pacer ETFs are known for their rules-based, index-tracking approach, gaining a reputation for consistent application of their strategies. They are considered reliable within the ETF market.

Management Expertise

Pacer Financial has a team of experienced investment professionals focused on developing and managing their suite of ETFs.

Goal

To track the performance of the American Energy Independence Index.

Investment Approach and Strategy

Strategy: Tracks the American Energy Independence Index.

Composition Primarily holds stocks of North American energy companies, focusing on those with high energy independence (i.e., lower reliance on imported oil and gas).

Market Share: USOI has a moderate market share within the energy ETF sector.

Total Net Assets (AUM): 79325733

Key Competitors

• Energy Select Sector SPDR Fund (XLE)
• VanEck Oil Services ETF (OIH)
• iShares U.S. Energy ETF (IYE)

Competitive Landscape

The energy ETF industry is dominated by large, broad-based ETFs like XLE. USOI differentiates itself by focusing on energy independence, but this narrower focus results in a smaller market share. Its advantage is its specific focus, attracting investors looking for energy independence, but it lacks the scale and liquidity of larger competitors.

Historical Performance: Historical performance data is best accessed via financial data providers (e.g., Bloomberg, Yahoo Finance) for current figures.

Benchmark Comparison: Benchmark comparison requires retrieving specific performance data for the American Energy Independence Index and comparing it to USOI's returns over various periods.

Expense Ratio: 0.6

Average Trading Volume

USOI's average trading volume indicates moderate liquidity, which may impact ease of entry and exit for larger positions.

Bid-Ask Spread

The bid-ask spread, typically a few cents, represents the cost of trading and can be a factor for high-frequency traders.

Market Environment Factors

Economic indicators (GDP growth, inflation), energy prices (oil, natural gas), and geopolitical events influence USOI's performance. Sector growth depends on energy demand and government policies.

Growth Trajectory

USOI's growth depends on the broader energy sector's performance and investor interest in energy independence. Any changes to the index or holdings will influence its future trajectory.

Competitive Edge

USOI's competitive edge lies in its unique focus on companies with a high degree of energy independence, which differentiates it from broader energy ETFs. This specific focus attracts investors seeking exposure to companies less reliant on imported energy sources. However, the ETF's narrower focus might also limit its appeal compared to broader energy sector funds. The ETF could be attractive to investors concerned about energy security and supply chain resilience.

Volatility

Volatility can be assessed by examining USOI's historical price fluctuations compared to broader market indices or other energy ETFs.

Market Risk

The primary market risk is associated with fluctuations in energy prices, changes in government regulations, and geopolitical events that affect the energy sector.

Ideal Investor Profile

The ideal investor is someone interested in the energy sector and specifically wants exposure to companies that are less reliant on imported energy, perhaps due to concerns about energy security or a belief in the growth of North American energy production.

Market Risk

USOI is suitable for investors with a moderate to high risk tolerance who seek targeted exposure to the energy sector and have a specific interest in energy independence. It's more suitable for long-term investors or those using it as part of a broader portfolio strategy rather than active traders.

The Pacer American Energy Independence ETF (USOI) offers targeted exposure to North American energy companies with a high degree of energy independence. Its unique focus differentiates it from broader energy ETFs, appealing to investors with specific interests. While it lacks the size and liquidity of its larger competitors, its focused approach is an advantage. Investors should be aware of energy sector volatility and consider the ETF's suitability for their portfolio and risk tolerance.

Data Sources:

• Pacer ETFs official website
• ETF.com
• Yahoo Finance
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.