Pacer Metaurus US Lg Cp Dvd Mltp 300 ETF’s management team is rated Average, but a solid investment process still helps this strategy retain its Morningstar Medalist Rating of Bronze. The strategy charges fees in line with its similarly distributed peers, priced within the middle quintile.  

 The strategy's sensible investment philosophy merits 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 volatility exposure compared with category peers. High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy’s management team earns an Average People Pillar rating. The People Pillar rating is indirectly assigned by an analyst rather than algorithmically derived. Please see the notes following pillar section for more details. The strategy's parent organization doesn't stand out, earning the firm an Average Parent Pillar rating. It has displayed a handful of investor-friendly attributes including overall reasonable fees and a competitive average Morningstar Rating.

Analyst Rating

Apple

Microsoft

Amazon

NVIDIA

Alphabet

Tesla

Berkshire Hathaway Inc. - Ordinary Shares - Class B

UnitedHealth Group

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 Metaurus US Lg Cp Dvd Mltp 300 ETF earns an Above Average Process Pillar rating. The most important driver of 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 influences the rating. The measure indicates the percentage of a firm's funds that survived and beat their respective category's median Morningstar Risk-Adjusted Return for the period. Their respectable 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 two 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 Metaurus US Large Cap Dividend Multiplier Index - Series 300.  The index, as designed, has two components: an S&P 500 Index component and a dividend component consisting of long positions in annual futures contracts that provide exposure to ordinary dividends paid on the common stocks of companies included in the S&P 500. Under normal circumstances, and at least 80% of the fund's net assets will be invested in large cap equity securities that are principally traded in the U.S. and derivatives based on those securities. It is non-diversified. 

 The portfolio has allocations in its top two sectors, technology and communication services, that are similar to the category. The sectors with low exposure compared to category peers are industrials and healthcare; however, the allocations are similar to the category. The portfolio is composed of 507 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 35.0% of the fund’s assets were concentrated in the top 10 fund holdings, as opposed to the category’s 50.3% average. And finally, in terms of portfolio turnover, this portfolio turns over its holdings less quickly than peers, potentially leading to lower costs for investors and eliminating a drag on performance.

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: Richard Silva, Brendan Greenwald. The team is inadequately equipped. Together, they average two years of portfolio management experience. Together, they manage a total of two strategies, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the 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 three-year Morningstar Rating is 3.3 stars, which is about standard. The longest-tenured managers’ average tenure is slim, four years, compared with peer firms. This contributes negatively to the rating as the current managers have limited experience running strategies at the firm.

Parent

Pacer Metaurus US Large Cap Target Dividend 300 ETF

TRPL tracks an index based on the stocks in the S&P 500 Index, long S&P Dividend futures and 3-year Treasurys. The objective is to provide 300% of the ordinary yield of the S&P 500 Index in exchange for reduced participation in the price performance.

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Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF has the strategy to trade 8% of the S&P 500 performance in return for giving investors 3X the yield. Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF has the strategy to trade 12% of the S&P 500 performance in return for giving investors 4X the yield.

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Is Your Client Getting Enough Yield? Let's Quadruple It

On Tuesday, Pacer ETFs, an ETF provider that offers strategy-driven, rules-based ETFs, announced the launch of two U.S. large cap dividend ETFs, QDPL and TRPL, in partnership with financial innovation and asset management company Metaurus Advisors, LLC. The two new unique, dividend-focused ETFs are now available on the New York Stock Exchange.

Pacer ETFs Launches 2 Dividend ETFs, ‘TRPL' and ‘QDPL'

MALVERN, Pa.--(BUSINESS WIRE)--Pacer ETFs debuts two dividend ETFs in partnership with Metaurus Advisors.

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