Pacer BlueStar Engineering the Fut ETF retains its Morningstar Medalist Rating of Silver. The portfolio maintains a sizable cost advantage over competitors, priced within the second-cheapest fee quintile among peers.  

 The strategy's investment process inspires confidence and earns a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an underweight position in momentum exposure and an overweight in volatility exposure compared with category peers. Momentum is the premise that stocks that have recently outperformed will continue to do so. With low momentum exposure, the portfolio is holding stocks that managers believe to be undervalued. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The team managing this passive strategy earns a Below Average People Pillar rating. The strategy's parent organization is industry standard, albeit with some strong attributes like overall reasonable fees and a favorable lineup success ratio. This earns the firm an Average Parent Pillar rating.

Analyst Rating

Autodesk

Applied Materials

Lam Research

ANSYS

Proto Labs

Stratasys

KLA-Tencor

Emerson Electric

3D Systems

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. Pacer BlueStar Engineering the Fut ETF earns a High Process Pillar rating. The leading factor in the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The parent firm's five-year risk-adjusted success ratio of 69% also bolsters the rating. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. Their noteworthy success ratio suggests that the firm does well for investors and that this fund may benefit from that. The parent firm's excellent risk-adjusted performance, as shown by its average overall Morningstar Rating of 3.3 stars, strengthens the process as well.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the total return performance, before fees and expenses, of the BlueStar Robotics and 3D Printing Index (the “index”).  The index is a rules-based index that consists of globally-listed stocks and depositary receipts of companies that derive at least 50% of their revenues from Robotics and 3D Printing Companies, as determined by the index provider. The fund adviser will generally use a “replication” strategy to achieve its investment objective, and meaning it will invest in all of the component securities of the index. The fund is non-diversified. 

 The portfolio is overweight in industrials by 14.8 percentage points in terms of assets compared with the category average, and its technology allocation is similar to the category. The sectors with low exposure compared to category peers are communication services and consumer cyclical, underweight the average by 9.4 and 2.6 percentage points of assets, respectively. The portfolio is positioned across 58 holdings and is relatively top-heavy. Of the strategy's assets, 55.7% are concentrated within the top 10 holdings, as opposed to the category’s 52.3% average. And in closing, in terms of portfolio turnover, on a year-over-year basis, 15% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

High

Process

Pacer’s team receives a Below Average People Pillar rating. The team is supported by its parent firm's five-year success ratio of 69%. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median return for the period. However, the rating is weakened by the turnover of talent across its parent firm. The firm's asset-weighted manager tenure of seven years suggests it could do more to retain portfolio managers. The instability of its management team also detracts from the team. The fund last saw a manager change two years ago.

Below Average

People

Pacer's track record as a steward is mixed, leading to an Average Parent Pillar rating. One notable advantage of Pacer is its below-average fees. On average, the firm's open-end and exchange-traded fund fees fall in the second-lowest quintile of category peers. The product lineup at Pacer has exhibited exemplary durability compared with peer asset managers when looked at over the past five years. Notably, its five-year risk-adjusted success ratio stands at 69%, meaning that 69% of its products have both survived and beaten their respective category median on a risk-adjusted basis. Portfolio management turnover at Pacer is higher than at peer firms, detracting from the overall assessment of the firm's stewardship. Turnover in the portfolio-management ranks can happen for a number of reasons, including mergers and liquidations, portfolio managers moving into other roles, or portfolio managers leaving the firm. In some cases, such change may not signal a serious or immediate problem at the firm, but can still be disruptive for investors, hinder the effectiveness of a firm’s investment processes, or suggest a weaker investment culture.

Average

Parent

Pacer BlueStar Engineering the Future ETF

BULD tracks a modified market cap-weighted index of equities that provides global exposure to robotics and 3D printing.

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MALVERN, Pa.--( BUSINESS WIRE )--Pacer ETFs celebrates an incredible year of growth driven by its suite of strategy-driven, rules-based ETFs, capped off by the outstanding achievement of reaching $19.6 billion in assets as of Dec. 30, 2022. After starting 2022 with $10.2 billion in AUM, Pacer achieved a 92.2% growth rate, nearly doubling its assets. Within the first week of the New Year, Pacer surpassed $20 billion in assets signaling a strong start for 2023.

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Pacer ETFs has announced the launch of the Pacer BlueStar Engineering the Future ETF (BULD), which aims to follow the BlueStar Global Robotics & 3D Printing Index. The rules-based index consists of globally listed stocks and depositary receipts of companies that derive at least 50% of their revenues from robotics or manufacturing automation equipment, computer-aided design (CAD) [.

Pacer ETFs Targets Opportunities in ‘The Fourth Industrial Revolution' with BULD

MALVERN, Pa.--(BUSINESS WIRE)---- $BULD #3Dprinting--Pacer ETFs launches BULD, providing exposure to robotics or manufacturing equipment, CAD software, or 3D printing products and material providers.

News for Pacer BlueStar Engineering the Future ETF ETF (BULD)