Demand for factor-based investment products increases amid market volatility, mounting uncertainty
Pacer ETFs (“Pacer”), an ETF provider that offers strategy-driven, rules-based ETFs, announces the Pacer Factor ETF Series (“Factor series”) has surpassed $1 billion in assets under management. Pacer’s Factor series has accumulated roughly $450 million, or 75%, of those assets since January 2022 as demand for formulaic, factor-driven investment products grows among investors and advisors in an increasingly volatile market.
“We have seen a rapid increase in demand for this fund family due to its ability to rotate between factors in an attempt to take advantage of opportunities in today’s fast-changing market,” says Sean O’Hara, president of Pacer ETF Distributors. “Through factor-based investing, we can determine how certain stock characteristics have performed under pressure, which resonates with investors during times of turmoil.”
Launched in 2020 in partnership with Lunt Capital, the Factor series consists of three ETFs that are designed to rotate between factors in the S&P 500. In recent months, the Pacer Lunt Large Cap Alternator ETF (ALTL) has seen significant growth and traction with investors looking to rotate between low volatility and high beta factors. The multi-factor approach of the series may offer investors an opportunity to take advantage of fluid market conditions by rotating between factors that could potentially outperform benchmarks or de-risk portfolios.
“We assume market volatility will continue to ramp up for the foreseeable future and it’s critical for us to provide ETFs that aim to help navigate market uncertainty,” says Joe Thomson, founder and president of Pacer Financial. “The growth of the Factor series, and Pacer in general, is based on the resiliency of our strategies and our emphasis on strategic partnerships. I’m excited to see what the future holds as we continue to push ourselves to launch new and innovative ETF products.”
For more information on Pacer ETFs, please visit PacerETFs.com.
About Pacer ETFs
Pacer ETFs is a strategy-driven exchange-traded fund provider with 45 ETFs and over $15.7 billion in assets under management, as of 8/1/2022. Pacer ETFs is focused on addressing investors’ needs through its seven fund families, the Pacer Trendpilot® Series, Pacer Cash Cows Index® ETF Series, Pacer Factor ETF Series, Pacer Custom ETF Series, Pacer Thematic ETF Series, Pacer Leaders Series, and Pacer Swan SOS ETF Series.
For more information, please visit PacerETFs.com.
Disclosures
Before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus. A copy may be obtained by visiting www.paceretfs.com or calling 1-877-577-2000. Please read the prospectus carefully before investing.
An investment in the Funds is subject to investment risk, including the possible loss of principal. Pacer ETF shares may be bought and sold on an exchange through a brokerage account. Brokerage commissions and ETF expenses will reduce investment returns. There can be no assurance that an active trading market for ETF shares will be developed or maintained. The risks associated with this fund are detailed in the prospectus and could include factors such as alternator strategy risk, calculation methodology risk, equity market risk, ETF risks, high portfolio turnover risk, large-capitalization investing risk, limited operating history risk, monthly exposure risk, non-diversification risk, passive investment risk, sector risk, tracking risk and/or special risks of exchange traded funds.
Alternator Strategy Risk: Because the Index will be comprised of only one Sub-Index each month, the Index may be comprised of low volatility securities during a period when such securities underperform high beta securities, or vice versa.
The Lunt Capital U.S. Large Cap Equity Rotation Index (the “Index”) is a service mark of Lunt Capital Management, Inc. and has been licensed for use by Pacer Advisors, Inc. The Product is not sponsored, endorsed, sold, or promoted by Lunt Capital Management, Inc. and Lunt Capital Management, Inc. makes no representation regarding the advisability of investing in the Product. The Index is the property of Lunt Capital Management, Inc., which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Index. The Index is not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Index. “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Lunt Capital Management, Inc. S&P® is a registered trademark of Standard & Poor's Financial Services LLC (“SPFS"), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”).
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED
Distributor: Pacer Financial, Inc., member FINRA, SIPC, an affiliate of Pacer Advisors, Inc.
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Contacts
Media
Trevor Davis
Gregory FCA for Pacer ETFs
215-475-5931
trevor@gregoryfca.com
Company
Ashlee Thomson for Pacer ETFs
610-981-6214
ashlee.thomson@pacerfinancial.com