Pacer Data and Digital Revolution ETF’s management team is just average, but a solid investment process still helps this strategy retain 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 effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in liquidity exposure and an underweight in quality exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And a low quality exposure is rooted in stocks with higher financial leverage and lower profitability. The team managing the passive strategy earns the strategy an Average People Pillar rating. The strategy's parent organization is industry standard, albeit with some strong attributes like overall affordable fees and a successful risk-adjusted track record. This earns the firm an Average Parent Pillar rating.

Analyst Rating

NVIDIA

Broadcom

Cisco Systems

VMware

Palo Alto Networks

Advanced Micro Devices

Intel

Arista Networks

Snowflake

Motorola Solutions

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 Data and Digital Revolution ETF earns an Above Average Process Pillar rating. The leading factor in the rating is that this fund tracks an index. Historical data, like 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 contributes to the process. 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 impressive success ratio suggests that the firm does well for investors and that this fund may benefit from that. Lastly, the process is limited by the experience of the management team, which averages five years at this fund.

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 Pacer Data Transmission and Communication Revolution Index.  The fund employs a “passive management” (or indexing) investment approach designed to track the total return performance, before fees and expenses, and of the index. The index is a rules-based index that consists of globally-listed stocks and depositary receipts of companies. The fund is non-diversified. 

 The portfolio is overweight in technology and industrials relative to the category average by 14.6 and 4.4 percentage points, respectively. The sectors with low exposure compared to category peers are communication services and consumer cyclical, underweight the average by 8.2 and 5.5 percentage points of assets, respectively. The portfolio is composed of 81 holdings and is relatively top-heavy. Of the strategy's assets, 58.9% are concentrated within the top 10 holdings, as opposed to the typical peer's 48.5%. And in closing, in terms of portfolio turnover, this fund trades less regularly than the typical peer in its category, which may result in a lower cost to investors.

Above Average

Process

Pacer’s  team is comparable to peers, resulting in an Average People Pillar rating. There are two managers listed on the fund: Bruce Kavanaugh, Danke Wang.  Together, they manage a total of 26 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

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-cheapest quintile of category peers. Pacer's risk-adjusted performance compares similarly to competitors. Across its open-end and exchange-traded funds, the firm’s average five-year Morningstar Rating is 3.5 stars, which is about standard. Pacer's longest-tenured managers do not possess comparable experience as teams at other firms, a cause for concern. Specifically, average tenure within the firm is four years. As such, there is less confidence in the group's ability to manage capital through a full market cycle effectively.

Parent

Pacer Data And Digital Revolution ETF

TRFK tracks market cap-weighted index of global companies involved in the use, manipulation, transmission, and storage of data, as well as the ancillary services that enable these processes. 

Proshares Big Data Refiners ETF

The Future Fund Active ETF

ETFMG Prime Cyber Security ETF

iShares North American Tech-Multimedia Networking ETF

iShares U.S. Telecommunications ETF

IP-based networking company Cisco Systems (CSCO) has announced its acquisition of cybersecurity heavyweight, Splunk (SPLK), for a staggering $28 billion.

ETFs in Focus as Cisco Acquires Splunk in $28 Billion AI-Deal

iShares U.S. Technology ETF

Invesco NASDAQ Internet ETF

First Trust NASDAQ-100 Technology Sector Index Fund

VanEck Vectors Semiconductor ETF

The technology sector is poised to weather a prolonged phase of increased interest rates.

5 Top Technology ETFs YTD With More Upside Potential

Global X Robotics & Artificial Intelligence ETF

Simplify Volt RoboCar Disruption and Tech ETF

AXS Esoterica NEXTG Economy ETF

The NVIDIA NVDA stock is a blockbuster this year as it has skyrocketed 220.4% courtesy of high hopes from artificial intelligence (AI). A surge in Hyperscale demand and a solid uptake of AI-based smart cockpit infotainment solutions are acting as tailwinds.

Why to Buy Nvidia Even After 220% YTD Jump? ETFs in Focus

Invesco QQQ

Communication Services Select Sector SPDR Fund

Technology Select Sector SPDR Fund

Consumer Discretionary Select Sector SPDR Fund

Nvidia and its partners show immense prospects in the field of AI transition. So, investors may ignore higher rates and continue to buy the dip in big tech ETFs.

Don't Fear Higher Rates: Tech ETFs to Rule on Nvidia & Allies

GraniteShares 1.5x Long NVDA Daily ETF

Nvidia shares zoomed as much as 10% to a record high in after-market trading post earnings announcement. Investors could tap the strength with the help of ETFs having the largest allocation to NVIDIA in focus.

Nvidia Soars on Blockbuster Q2 earnings: ETFs to Buy

Spear Alpha ETF

Nvidia is likely to come up with earnings beat in its Q2 report. Wall Street analysts have turned more bullish ahead of the chipmaker's quarterly earnings report.

Nvidia ETFs in Focus Ahead of Q2 Earnings

First Trust NASDAQ Cybersecurity ETF

First Trust Dow Jones Internet Index Fund

Cisco (CSCO) beat on both earnings and revenues but offered a downbeat guidance for the fiscal year. This has put ETFs with the largest allocation to this networking giant in focus.

Cisco Beats on Q4 Earnings: ETFs in Focus

The NVIDIA stock is a blockbuster this year as it has skyrocketed 212% courtesy of high hopes from artificial intelligence. However, the stock has Zacks Rank #1 (Strong Buy), indicating more room for growth.

Why to Buy Nvidia Even After 212% YTD Jump? ETFs in Focus

Nvidia (NVDA) hit a $1 trillion market-cap valuation, becoming the world's ninth public company and the first chipmaker to ever hit the trillion level.

Nvidia Hits Trillion-Dollar Market Cap: 5 ETFs to Track

First Trust Nasdaq Semiconductor ETF

iShares Evolved U.S. Technology ETF

iShares PHLX Semiconductor ETF

Apple and Broadcom recently entered into a partnership to collab on the development of 5G radio frequency components within the United States. Take a look into how the multi-billion dollar deal affects ETFs with exposure to Broadcom.

Take a Look Into How Apple-Broadcom Deal Puts ETFs in Focus

Nvidia (NVDA) topped both earnings and revenue estimates when it reported its first-quarter fiscal 2024 results. It also offered a bullish revenue outlook for the current quarter on booming artificial intelligence (AI) demand for its high-powered chips.

ETFs to Buy on Nvidia's Blowout Q1 Earnings

Nvidia stock has more than doubled in value this year. Wall Street analysts are bullish on the semiconductor specialist ahead of its earnings.

Nvidia ETFs Look Strong Ahead of Q1 Earnings

Invesco Dynamic Networking ETF

Cisco beat on both earnings and revenues, and offered an encouraging revenue guidance for the current quarter. However, orders declined 23%%, sending shares down.

Cisco Q3 Earnings Beat, Shares Fall: ETFs in Focus

Strive US Semiconductor ETF

First Trust NASDAQ Technology Dividend Index Fund

Intel suffered its largest-ever quarterly loss amid cooling demand for its chips used in personal computers. However, the world's largest chipmaker beat both the top and bottom lines.

Intel Q1 Earnings Put These ETFs in Focus

VanEck Video Gaming and eSports ETF

Nvidia (NVDA) cheered investors with its solid fourth-quarter fiscal 2023 results, wherein it topped both earnings and revenue estimates. It also offered a bullish revenue outlook for the current quarter.

Nvidia Gains, Beats Q4 Earnings Estimates: ETFs to Tap

Cisco Systems (CSCO) beat on both earnings and revenues, and offered encouraging revenue guidance for the current quarter. Cisco also raised its fiscal-year revenue outlook.

ETFs to Tap as Cisco Beats on Q2 Earnings, Raises View

Invesco Dow Jones Industrial Average Dividend ETF

Intel missed estimates for both earnings and revenues and offered a weak outlook for 2023, citing cooling demand for its chips used in personal computers.

Intel Plunges on Earnings Miss, Weak Guidance: ETFs in Focus

Pacer Lunt Large Cap Alternator ETF

Pacer US Small Cap Cash Cows 100 ETF

Pacer US Cash Cows 100 ETF

Pacer Emerging Markets Cash Cows 100 ETF

Pacer Pacific Asset Floating Rate High Income ETF

Pacer Global Cash Cows Dividend ETF

Pacer Developed Markets International Cash Cows 100 ETF

Pacer BlueStar Engineering the Future ETF

Pacer US Large Cap Cash Cows Growth Leaders ETF

Pacer BlueStar Digital Entertainment ETF

Pacer Industrials and Logistics ETF

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.

Pacer ETFs Celebrates Banner Year of Growth in 2022, Crosses $20B to Kickoff New Year

Roundhill Ball Metaverse ETF

Nvidia (NVDA) disappointed investors with its third-quarter fiscal 2023 results, wherein it missed earnings estimates and forecast weakness in revenues for the ongoing quarter.

Nvidia Misses Q3 Earnings, Shares Up: ETFs in Focus

Cisco (CSCO) cheered investors with first-quarter fiscal 2023 results. The networking giant beat on both earnings and revenues, and offered an encouraging revenue guidance for the current quarter.

ETFs to Tap as Cisco Tops Fiscal Q1 Earnings

Nvidia cited weakening demand for its gaming processors by its channel partners and resellers.

Nvidia ETFs in Focus Ahead of Q3 Earnings

AI Powered Equity ETF

Nvidia (NVDA) missed earnings estimates and forecast a sharp drop in revenues for the current quarter due to a slowdown in PC and gaming sales.

ETFs in Focus On Nvidia's Q2 Earnings Miss & Weak Outlook

Cisco Systems (CSCO) beat on both earnings and revenues, and provided an upbeat revenue forecast for the October quarter, citing easing supply-chain constraints.

Cisco Pops on Earnings Beat: ETFs to Buy

MicroSectors FANG+ ETN

QUALCOMM

The graphics chipmaker Nvidia (NVDA) disappointed investors following the warning of lower second-quarter fiscal 2023 revenues.

Nvidia Tumbles on Fiscal Q2 Revenue Warnings: ETFs in Focus

MALVERN, Pa.--(BUSINESS WIRE)-- #AUM--Pacer ETFs celebrates 7th birthday surpassing $15 billion in assets under management

News for Pacer Data And Digital Revolution ETF ETF (TRFK)