Pacer ETFs, a provider of passive rules-based strategies, has passed USD3 billion in assets under management as it finishes another year with remarkable growth combined with the launch of several new products.
Following its debut in 2015, Pacer ETFs has enjoyed accelerated growth this year, reaching the USD3 billion AUM mark just six months after reaching the USD2 billion AUM milestone in March. In addition to this, Pacer ETFs had an organic growth rate of 114 per cent from October 2017 to October 2018, according to data from Morningstar.
“Our growth proves that our mission to provide passive, rules-based strategies to navigate turbulent markets is resonating with advisors and investors alike,” says Sean O’Hara, president of Pacer ETFs Distributors. “It took us two years to amass the first billion dollars in assets under management. The third billion in assets came in under six months, making us one of the fastest-growing ETF issuers in the industry. We owe a special thanks to some of our partners including US Bank, S&P, NASDAQ, FTSE Russell, NYSE and CBOE who help make our ETFs possible, as well as the financial advisors who use our strategies.”
The firm’s well-established Trendpilot ETFs have proved especially attractive to investors. In fact, the Trendpilot ETF Series grew assets by over USD1.1 billion during 2018. Also popular with investors was the Cash Cows Index ETF Series, which grew assets by over USD270 million over the last year.
Pacer ETFs expanded its product offerings in 2018, launching six new ETFs. “As we expand our product line, we see significant opportunity for growth in 2019,” O’Hara says.
The Pacer Benchmark Retail Real Estate SCTR ETF (RTL), the Pacer Benchmark Industrial Real Estate SCTR ETF (INDS) and the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR) for investors looking for exposure to real estate. INDS and SRVR also offer exposure to e-commerce firms by holding assets in data centres and warehouses catering to that industry.
The Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF (SZNE), which looks to grow and preserve wealth based on long-term seasonal trends in equities using market research provided by Sam Stovall and research giant CFRA.
The Pacer US Export Leaders ETF (PEXL), the first fund in the Pacer Leaders ETF series, which offers exposure to best-in-breed companies within specific thematic investment strategies. The Pacer US Export Leaders ETF screens companies for the highest percentage of foreign sales and high free-cash-flow growth.
The Pacer Military Times Best Employers ETF (VETS), which provides exposure to companies with a legacy of supporting training and professional development for military veterans, service members and their families.
To meet increased demand, Pacer ETFs added 13 wholesalers in 2018 and is currently in the process of moving to a larger headquarters in Malvern, Pensylvania. “We’ve grown in every facet of our business,” adds Joe Thomson, founder and president of Pacer Financial. “Since inception, we’ve been committed to helping investors prepare for retirement using rules-based indices to mitigate downside risk and screening for quality stocks. In 2019, we will continue that mission by providing more options for diversification, greater opportunities for growth and better service to the advisors and investors who have come to know and love our ETFs.”