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Should Pacer Trendpilot US Mid Cap ETF (PTMC) Be on Your Investing Radar?
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Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the Pacer Trendpilot US Mid Cap ETF (PTMC - Free Report) , a passively managed exchange traded fund launched on 06/12/2015.
The fund is sponsored by Pacer Etfs. It has amassed assets over $498.15 M, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. These types of companies, then, have a good balance of stability and growth potential.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.60%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.68%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 17.20% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Abiomed Inc accounts for about 0.72% of total assets, followed by Broadridge Finl Solutions Inc Com (BR - Free Report) and Teleflex Inc (TFX - Free Report) .
The top 10 holdings account for about 6.47% of total assets under management.
Performance and Risk
PTMC seeks to match the performance of the Pacer Trendpilot US Mid Cap Index before fees and expenses. The Pacer Trendpilot US Mid Cap Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure 100% to the S&P MidCap 400 Index, 50% to the S&P MidCap 400 & 50% to 3-Month US T-bills, or 100% to 3-Month US T-bills, depending on the relative performance of S&P MidCap 400 TR Index & its 200-business day historical simple moving average.
The ETF has lost about -1.16% so far this year and was up about 10.41% in the last one year (as of 05/03/2018). In the past 52-week period, it has traded between $27.50 and $32.67.
The ETF has a beta of 0.46 and standard deviation of 11.52% for the trailing three-year period, making it a medium risk choice in the space. With about 402 holdings, it effectively diversifies company-specific risk.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should Pacer Trendpilot US Mid Cap ETF (PTMC) Be on Your Investing Radar?
Looking for broad exposure to the Mid Cap Blend segment of the US equity market? You should consider the Pacer Trendpilot US Mid Cap ETF (PTMC - Free Report) , a passively managed exchange traded fund launched on 06/12/2015.
The fund is sponsored by Pacer Etfs. It has amassed assets over $498.15 M, making it one of the average sized ETFs attempting to match the Mid Cap Blend segment of the US equity market.
Why Mid Cap Blend
Mid cap companies have market capitalization between $2 billion and $10 billion. They usually have higher growth prospects than large cap companies and are less volatile than small cap companies. These types of companies, then, have a good balance of stability and growth potential.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.60%, putting it on par with most peer products in the space.
It has a 12-month trailing dividend yield of 0.68%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation to the Information Technology sector--about 17.20% of the portfolio. Financials and Industrials round out the top three.
Looking at individual holdings, Abiomed Inc accounts for about 0.72% of total assets, followed by Broadridge Finl Solutions Inc Com (BR - Free Report) and Teleflex Inc (TFX - Free Report) .
The top 10 holdings account for about 6.47% of total assets under management.
Performance and Risk
PTMC seeks to match the performance of the Pacer Trendpilot US Mid Cap Index before fees and expenses. The Pacer Trendpilot US Mid Cap Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure 100% to the S&P MidCap 400 Index, 50% to the S&P MidCap 400 & 50% to 3-Month US T-bills, or 100% to 3-Month US T-bills, depending on the relative performance of S&P MidCap 400 TR Index & its 200-business day historical simple moving average.
The ETF has lost about -1.16% so far this year and was up about 10.41% in the last one year (as of 05/03/2018). In the past 52-week period, it has traded between $27.50 and $32.67.
The ETF has a beta of 0.46 and standard deviation of 11.52% for the trailing three-year period, making it a medium risk choice in the space. With about 402 holdings, it effectively diversifies company-specific risk.
Bottom-Line
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.