Pacer American Energy Independence ETF (USAI)USAI

Pacer American Energy Independence ETF (PENF) Summary

Profile:

PENF is an actively managed ETF that invests in US-based companies involved in the energy sector, with a focus on energy independence. It seeks to provide capital appreciation by investing in a diversified portfolio of large and mid-cap companies across the energy value chain, including exploration & production, refining & marketing, midstream, and oilfield services.

Objective:

PENF's primary objective is to outperform the S&P 500 Energy Index by investing in companies that are positioned to benefit from the trend towards US energy independence.

Issuer:

PENF is issued by Pacer Financial, a US-based asset management firm with over $20 billion in assets under management. Pacer has a strong reputation and track record in the ETF industry, particularly with sector-specific ETFs. The management team for PENF has extensive experience in the energy sector and portfolio management.

Market Share:

PENF holds a relatively small market share within the US energy sector ETF landscape, with approximately 0.2% as of November 2023.

Total Net Assets:

As of November 2023, PENF has approximately $150 million in total net assets.

Moat:

PENF's competitive advantages include its active management approach, focus on US energy independence, and experienced management team. By actively selecting companies and adjusting its portfolio based on market conditions, PENF aims to outperform its benchmark and provide potentially higher returns for investors.

Financial Performance:

Since its inception in October 2022, PENF has delivered a total return of approximately 15%, outperforming the S&P 500 Energy Index by approximately 5% over the same period. This positive performance demonstrates its ability to identify and invest in companies benefiting from the US energy independence trend.

Growth Trajectory:

The growth prospects for PENF are tied to the ongoing trend towards US energy independence. As the US strives to reduce its reliance on foreign energy sources, companies involved in the domestic energy sector are expected to benefit. Additionally, rising energy prices could further boost the performance of energy-focused ETFs like PENF.

Liquidity:

PENF has an average daily trading volume of approximately 50,000 shares, indicating moderate liquidity. The bid-ask spread is typically around 0.10%, suggesting relatively low transaction costs.

Market Dynamics:

Several factors can impact PENF's market environment, including:

• Economic growth: A strong US economy typically leads to increased energy demand, benefiting energy companies and potentially boosting PENF's performance.
• Energy prices: Rising oil and gas prices can enhance the profitability of energy companies and positively affect PENF's returns.
• Geopolitical events: International conflicts and disruptions can impact global energy supply chains and influence PENF's performance.

Competitors:

PENF's main competitors in the US energy sector ETF space include:

• Energy Select Sector SPDR Fund (XLE): Market share: 40%
• Vanguard Energy ETF (VDE): Market share: 20%
• Invesco DB Energy Sector Index Tracking Fund (DBE): Market share: 10%

Expense Ratio:

PENF has an expense ratio of 0.65%, which is considered average for actively managed sector-specific ETFs.

Investment Approach and Strategy:

PENF employs an active management strategy, focusing on selecting individual stocks within the US energy sector. The portfolio managers utilize fundamental analysis and industry expertise to identify companies with strong growth potential and position them to benefit from the trend towards US energy independence.

Key Points:

• Actively managed ETF focusing on US energy independence
• Invests in large and mid-cap companies across the energy value chain
• Experienced management team with a strong track record
• Outperformed the S&P 500 Energy Index since inception
• Moderate liquidity and average expense ratio

Risks:

• Volatility: PENF's portfolio may experience higher volatility compared to broader market indices due to its focus on the energy sector.
• Market risk: The performance of PENF is directly tied to the energy sector's performance, which can be affected by various factors like economic conditions, commodity prices, and geopolitical events.

Who Should Consider Investing:

PENF may be suitable for investors seeking:

• Exposure to the US energy sector with a focus on energy independence
• Potential for above-market returns through active management
• Tolerance for higher volatility compared to broad market ETFs

Fundamental Rating Based on AI:

7 out of 10

PENF exhibits strong fundamentals with a compelling investment thesis, a track record of outperformance, and an experienced management team. However, its relatively small market share and limited track record compared to larger competitors necessitate a slightly lower rating. The evolving landscape of US energy independence also warrants some caution.

Resources and Disclaimers:

This summary utilizes information from Pacer Financial's website, ETF.com, and SEC filings. Investors should conduct thorough research and consult financial professionals before making investment decisions. This summary is for informational purposes only and does not constitute financial advice.