Filing Details Seasonal Sector ETFs
Funds will target specific sectors during certain times of the year.
A recent filing from Pacer Funds outlines the firm’s plans to launch four ETFs that engage in seasonal sector rotation. The funds are as follows:
- Pacer CFRA-Stovall Global Seasonal Rotation Index ETF
- Pacer CFRA-Stovall Small Cap Seasonal Rotation Index ETF
- Pacer CFRA-Stovall Large Cap Seasonal Rotation Index ETF
- Pacer CFRA-Stovall Equal Weight Seasonal Rotation Index ETF
The four funds will start off the year with their assets invested in four equally weighted sectors from their underlying benchmarks’ parent indexes. From Jan. 1 through April 30, the funds will be equally invested in the consumer discretionary, industrials, information technology and materials sectors. As of May 1, they will rotate into the consumer staples and health care sectors, splitting the portfolio evenly between the two. Finally, as of Nov. 1, they will rotate into the four original sectors for the remainder of the year.
The global ETF tracks an index covering sectors of the S&P Global 1200, while the small-cap fund’s benchmark is derived from the S&P SmallCap 600 and the large-cap ETF’s benchmark is derived from the S&P 500 Index. The equal-weight ETF will track an index that is a subset of the S&P 500 Equal Weight Index.
While the sectors will be equal-weighted, their individual components will be weighted by market capitalization.
The filing did not include expense ratios, tickers or a listing exchange.
Contact Heather Bell at [email protected]
