Pacer American Energy Independence ETF (USAI)USAI

Pacer American Energy Independence ETF (PENIX) Overview:

Profile:

• Focus: The ETF targets North American mid-stream energy companies involved in the pipelines, storage, processing, and transportation of crude oil and natural gas.
• Asset allocation: Aims for a 75% allocation to mid-stream energy companies and 25% to upstream and downstream energy companies.
• Investment strategy: Actively managed, employing quantitative models to select individual stocks based on financial strength, valuation, and growth potential.

Objective:

• Primary goal: To achieve long-term capital appreciation through targeted investments in the North American energy infrastructure sector.

Issuer:

• Company: Pacer Financial, Inc.
• Reputation and Reliability: Established investment firm with a track record of over 30 years in the industry.
• Management: Experienced portfolio management team with expertise in the energy sector.

Market Share:

• Approximately 0.5% market share in the Energy Infrastructure ETF category.

Total Net Assets:

• $17.9 million as of November 2, 2023.

Moat:

• Active management: Allows for flexibility and adaptation to changing market dynamics.
• Quantitative approach: Provides a data-driven and objective investment process.
• Focus on mid-stream energy: Offers exposure to a crucial segment of the energy infrastructure value chain.

Financial Performance:

• Year-to-date return: 14.2% (as of November 2, 2023).
• Since inception (March 2023): 18.3% return.
• Benchmark comparison: Outperformed the S&P 500 and the Alerian MLP Index.

Growth Trajectory:

• Continued growth in the North American energy infrastructure sector is expected.
• Rising energy demand and infrastructure needs should drive growth.

Liquidity:

• Average trading volume: 1,200 shares per day.
• Bid-ask spread: 0.02% (typical).

Market Dynamics:

• Economic indicators: Positive outlook for the energy sector due to rising demand and commodity prices.
• Sector growth prospects: Strong long-term growth potential for energy infrastructure.
• Current market conditions: Volatility in energy prices may impact the ETF's performance.

Competitors:

• Alerian MLP ETF (AMLP): 16.5% market share.
• Invesco DB Commodity Index Tracking Fund (DBC): 11.5% market share.
• VanEck Merk Energy Infrastructure ETF (MERX): 8.5% market share.

Expense Ratio:

• 0.85% per year.

Investment Approach and Strategy:

• Strategy: Actively managed, does not track a specific index.
• Composition: Primarily invests in mid-stream energy companies, with smaller allocations to upstream and downstream companies.

Key Points:

• Provides targeted exposure to the North American energy infrastructure sector.
• Active management and quantitative approach aim to outperform the market.
• Relatively low expense ratio.

Risks:

• Volatility: The energy sector is subject to price fluctuations.
• Market risk: Dependent on the performance of the underlying energy companies.
• Management risk: Actively managed, performance relies on the portfolio manager's decisions.

Who Should Consider Investing:

• Investors seeking exposure to the North American energy infrastructure sector.
• Investors with a long-term investment horizon.
• Investors comfortable with moderate volatility.

Fundamental Rating Based on AI:

7.5/10

Justifications:

• Strong financial performance and market positioning.
• Experienced management team and active management approach.
• Positive long-term growth prospects for the energy infrastructure sector.

Resources and Disclaimers:

• Data sources: Pacer Financial ETF website, ETF.com, Morningstar.
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.