ETF issuer Pacer ETFs has announced the Pacer Factor ETF Series has surpassed USD1 billion in assets under management.
The firm writes that Pacer’s Factor series has accumulated roughly USD450 million, or 75 per cent, of those assets since January 2022 as demand for formulaic, factor-driven investment products grows among investors and advisers in an increasingly volatile market.
“We have seen a rapid increase in demand for this fund family due to its ability to rotate between factors in an attempt to take advantage of opportunities in today’s fast-changing market,” says Sean O’Hara, president of Pacer ETF Distributors. “Through factor-based investing, we can determine how certain stock characteristics have performed under pressure, which resonates with investors during times of turmoil.”
Launched in 2020 in partnership with Lunt Capital, the Factor series consists of three ETFs that are designed to rotate between factors in the S&P 500. In recent months, the Pacer Lunt Large Cap Alternator ETF (ALTL) has seen significant growth and traction with investors looking to rotate between low volatility and high beta factors, the firm writes. The multi-factor approach of the series may offer investors an opportunity to take advantage of fluid market conditions by rotating between factors that could potentially outperform benchmarks or de-risk portfolios.
“We assume market volatility will continue to ramp up for the foreseeable future and it’s critical for us to provide ETFs that aim to help navigate market uncertainty,” says Joe Thomson, founder and president of Pacer Financial. “The growth of the Factor series, and Pacer in general, is based on the resiliency of our strategies and our emphasis on strategic partnerships. I’m excited to see what the future holds as we continue to push ourselves to launch new and innovative ETF products.”