Pacer ETFs (Pacer), an ETF provider that offers strategy-driven, rules-based ETFs, has passed USD7 billion in assets under management (AUM).
Since Pacer’s inception with the flagship Trendpilot strategy in 2015, the firm has grown its offerings to 36 unique, exchange-traded funds while also expanding to 92 total employees between its home office in suburban Philadelphia and 43 Wirehouse and Independent territories across the country.
Among Pacer’s most notable fund families is the Pacer Trendpilot ETF Series due to its trend-following strategy. This fund series has shown strong growth in recent years, especially its Pacer Trendpilot US Bond ETF (PTBD), a fixed-income fund that seeks risk mitigation by alternating exposure between high-yield corporate bonds and US Treasury bonds. Since its launch in 2019, PTBD has amassed USD1 billion in assets.
“We are excited to celebrate this milestone achievement and would like to thank the financial advisors, investors and partners that have supported our growth,” says Pacer ETFs Distributors President Sean O’Hara. “Our success over the last six years is a testament to our innovative and effective approach to creating products aimed at solving the problems financial advisors and their clients are facing in today’s market. We are looking forward to sustaining our growth mindset and our momentum through our unique, rules-based ETFs and the creation of new potential solutions.”
Over the last year, Pacer saw incredible growth across a number of its funds. Both the Pacer Cash Cows Index ETF Series and the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (SRVR) crossed USD1 billion in assets under management. In April 2021, Pacer rolled out its April Series of Structured Outcome Strategy (SOS) ETFs, which offer specific buffers and caps over a 12-month period.
Another noteworthy fund family is the Pacer Factor ETF Series. Last year, Pacer partnered with Lunt Capital Management to create three factor-based funds, one being the Pacer Lunt Large Cap Alternator ETF (ALTL), known for alternating between low-volatility and high-beta stocks in the S&P 500 Index. Pacer also partnered with Salt Financial to create two ETFs utilising the truBeta strategy. The series has risen in popularity in recent months, amassing over USD200 million assets under management. On the wholesale side, Pacer has also added three external and six internal wholesalers to its team over the past year.
“I’m incredibly proud of our team and everyone who has made it possible for us to cross the USD7 billion mark in AUM before our sixth birthday,” says Joe Thomson, founder and president of Pacer Financial. “Through market highs and lows, we’ve been able to offer products to investors we feel they have been looking for. We plan to continue on this path and help financial advisors and their clients through any market conditions.”
Pacer expects to sustain its long-term growth trajectory by adding to its list of funds in the next few months and hiring new personnel for the firm’s Malvern office.