Export, Rotation ETFs Launch

Pacer rolled out two very different ETFs on Tuesday.

ETF.com
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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

Yesterday Pacer Funds rolled out two ETFs that cover very different slices of the market. The Pacer US Export Leaders ETF (PEXL) targets companies with significant foreign sales, while the Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF (SZNE) implements a seasonally based sector rotation strategy.

Both funds list on the NYSE Arca and come with expense ratios of 0.60%.

PEXL’s underlying index selects the 200 companies from the S&P 500 Index and the S&P MidCap 400 Index with the highest percentage of foreign sales. From there it selects the 100 companies exhibiting the largest increase in free cash flow growth over the prior five-year period. Every quarter, the index equal-weights its 100 components, the fund’s prospectus says.  

SZNE offers a sector rotation strategy based on the S&P 500 Equal Weight Index, meaning individual components are equal-weighted. From Jan. 1 to April 30, the fund’s underlying index allocates to the consumer discretionary, industrials, information technology and materials sectors, initially giving each sector a weight of 25%. From May 1 to Oct. 31, the index allocates half of its portfolio to the consumer staples sector and half to the health care sector. From Nov. 1 to Dec. 31, it again allocates to the consumer discretionary, industrials, information technology and materials sectors, according to SZNE’s prospectus.

The prospectus does not mention how the realignment of the GICS sectors, which are used by S&P Dow Jones Indices, will affect the fund’s strategy.

Contact Heather Bell at [email protected]

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