Pacer ETFs | Best Active ETF Issuer ($100m-$1bn) | Best International Equity ETF Issuer ($1bn-$10bn) | Best US Equity ETF Issuer ($1bn-$5bn)
Pacer ETFs, distributed by Pacer Financial, are strategy driven exchange traded funds that aim to help investors prepare for retirement using rules-based indices to minimise downside risk and screening for quality stocks.
Pacer Financial launched in 2004 offering low cost, tax efficient solutions for investors looking to recover from the dotcom crash. In 2008, Pacer Financial partners with a start-up exchange traded fund company to launch a series of ETFs and is “responsible for building the brand and raising approximately USD650 million in assets during one of the biggest financial crises in history”.
It launched Pacer ETFs in 2015. It now has just over USD18 billion in assets under management and employees around 140 people.
The Pacer Trendpilot series – of which the international and US strategies both picked up prizes at this years’ ETF Express Awards – participate in the market when it is trending up. They pare back market exposure during short-term market down trends and prevent extended declines by moving to T-bills during long-term market down trends.
Sean O’Hara, president at Pacer ETFs, says: “We are all really proud of what we have accomplished so far at Pacer ETFs. We focus on creating ETFs that are strategy driven, and that create outcomes that solve problems for both financial advisers and clients alike. It is really validating when we receive accolades and awards for what we set out to do.”
The Pacer Trendpilot International ETF seeks to track the total return performance, before fees and expenses, of the Pacer Trendpilot International Index. The index is based on a proprietary methodology developed and maintained by Index Design Group, an affiliate of Pacer Advisors, the fund’s investment adviser.
The Pacer Trendpilot 100 ETF implements invests in the NASDAQ-100 aiming to participate in the market when it is trending up, maintain some exposure during short-term market declines and move to 3-month US T-Bills when it is trending down.
O’Hara says investors are favouring Pacer ETFs as a way to diversify their portfolios.
“We have seen a major shift in our flows this year to ETFs that are value or quality oriented, or an intentionally different from the broader market Index based ETF,” he says.
Looking to the coming year, O’Hara says the ETF market will continue to experience strong inflows and issuers will seek to capitalise by developing more innovative ETF products.
He says: “We believe the ETF Business will continue to grow rapidly over the next several years. There a quite a few ETFs currently in the market, but there are still many opportunities for new ideas to take hold, and for ETFs to continue to innovate and develop smart solutions, that take advantage of the benefits of the ETF wrapper.”