5 min readBy Ron Koren ETF Insider
Managing Concentration Risk to Improve Portfolio Performance
Concentration risks come in many forms. Identify exactly where you may be exposed.
The Pacer Lunt MidCap Multi-Factor Alternator ETF is managed by PAMC Capital Management, Inc. (PAMC Capital), the ETF's dedicated issuer and investment manager. PAMC Capital employs a passive management or indexing approach, aiming to replicate the performance of the proprietary Index developed by Lunt Capital Management, Inc. This ETF seeks exposure to mid-capitalization U.S. companies by employing a rules-based methodology that rotates between the holdings of specific factor-based indices, including Momentum, Quality, Value, and Volatility, all designed to identify the strongest components of the S&P MidCap 400 Index. PAMC Capital's expertise in factor-based investing and relative strength analysis is integral to the ETF's investment strategy, making it an option for investors looking for exposure to this market segment.
While the primary objective of the PAMC Dividend ETF (PAMC) is to track the investment returns of blockchain-focused companies, it also provides a glimpse into its dividend distribution, although this isn't the primary focus of the fund. Dividend distributions typically occur on a quarterly basis and are influenced by the dividend policies and performance of the constituent Blockchain Companies within the ETF. PAMC invests in companies actively utilizing or researching blockchain technology, aiming to benefit from its innovation and adoption while providing investors with exposure to the potential dividends of these innovative firms.
Tracking the Total Return Performance of a Proprietary Mid-Cap Index The PAMC ETF employs a passive management strategy designed to closely track the total return performance of a proprietary mid-cap index developed by Lunt Capital Management, Inc. This index employs a unique methodology that utilizes relative strength analysis to rotate between holdings in the S&P MidCap 400 Index, focusing on four key factors: Momentum, Quality, Value, and Volatility. The PAMC ETF aims to capture the performance of mid-capitalization U.S. companies with a focus on those exhibiting strong factor characteristics, making it an attractive choice for investors seeking exposure to this segment of the market.
The correlation aspect of the Pacer Lunt MidCap Multi-Factor Alternator ETF is known to be a critical factor in understanding its performance. As this ETF employs a passive management strategy to track the total return performance of an index, its correlation with that index plays a pivotal role. Investors often look to this ETF for exposure to mid-capitalization U.S. companies and rely on its correlation with the selected factor-based indices to make informed investment decisions. To delve deeper into the correlations and gain valuable insights, you can utilize our tool, ETF Insider, with its web app and visualization tools designed to analyze and visualize correlations among various U.S. ETFs, helping you make more informed investment choices and uncovering potential overlaps in your portfolio.
The Pacer Lunt MidCap Multi-Factor Alternator ETF (PAMC) is heavily involved in the mid-cap sector of the market. This ETF employs a passive management approach that tracks the performance of an index utilizing Lunt Capital's proprietary relative strength methodology. It rotates between the highest and lowest quintile components of four factor-based indices in the S&P MidCap 400 Index, focusing on factors like momentum, quality, value, and volatility. By targeting mid-cap companies exhibiting these factors, PAMC provides investors with exposure to a specific segment of the market with the potential for strong price performance, while acknowledging the associated risks of concentration in a non-diversified portfolio.
The exposure characteristic of the PAMC ETF (Ticker: PAMC) is centered around a passive management investment approach, aiming to replicate the performance of the proprietary Index developed by Lunt Capital Management, Inc. This ETF provides investors with exposure to mid-capitalization U.S. companies, utilizing Lunt Capital's relative strength methodology to rotate between factor-based indices, including Momentum, Quality, Value, and Volatility, within the S&P MidCap 400 Index. PAMC aims to deliver returns that closely align with the performance of this mid-cap segment, offering investors a strategic tool to access specific factors and opportunities within the U.S. mid-cap market.ETF Insider offers a comprehensive web app and visualization tool to uncover the exposure characteristics of PAMC and other U.S. ETFs. With its data-rich insights, investors can explore correlations, overlaps, and deep insights, helping them make informed investment decisions within the mid-cap sector.
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5 min readConcentration risks come in many forms. Identify exactly where you may be exposed.
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4 min readIn this article, readers will delve into the PAMC ETF, an Exchange Traded Fund that offers exposure to a diverse range of asset classes. Discussing its investment philosophy, risk factors, and potential returns, this comprehensive piece serves as an invaluable guide for investors exploring multi-asset investment strategies.
ETF Insider is a novel portfolio optimization tool that uses the power of data visualization to gain insight into portfolio compositions, concentration risks, portfolio efficiency and more. Complex financial data can be transformed into visually appealing and easily digestible graphs and charts, allowing investors to quickly identify trends and make well-informed investment decisions. Not only does this save time, but it also increases the accuracy and effectiveness of portfolio management.
