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Should Pacer Trendpilot US Mid Cap ETF (PTMC) Be on Your Investing Radar?
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Launched on 06/12/2015, the Pacer Trendpilot US Mid Cap ETF (PTMC - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Pacer Etfs. It has amassed assets over $519.53 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
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
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 0.65%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, 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 0.83% 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 6.63% 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 return is roughly 3.09% so far this year and was up about 15.15% in the last one year (as of 05/25/2018). In the past 52-week period, it has traded between $27.91 and $32.67.
The ETF has a beta of 0.46 and standard deviation of 11.46% 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
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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?
Launched on 06/12/2015, the Pacer Trendpilot US Mid Cap ETF (PTMC - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Mid Cap Blend segment of the US equity market.
The fund is sponsored by Pacer Etfs. It has amassed assets over $519.53 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
With market capitalization between $2 billion and $10 billion, mid cap companies usually contain higher growth prospects than large cap companies, and are considered less risky than their small cap counterparts. Thus, companies that fall under this category provide a stable and growth-heavy investment.
Blend ETFs usually hold a mix of growth and value stocks as well as stocks that exhibit both value and growth characteristics.
Costs
Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.
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 0.65%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, 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 0.83% 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 6.63% 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 return is roughly 3.09% so far this year and was up about 15.15% in the last one year (as of 05/25/2018). In the past 52-week period, it has traded between $27.91 and $32.67.
The ETF has a beta of 0.46 and standard deviation of 11.46% 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
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
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.