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This Exchange Traded Fund (ETF) targets large-capitalization companies, utilizing a specific strategy to mirror the performance of an underlying index. This index periodically shifts its holdings, rotating investments between stocks from the S&P 500 Index that exhibit low volatility and those characterized by high beta.
Is ALTL's expense ratio expensive, average, or a steal for its category?
Pro reveals the verdict on a 5-tier spectrum calibrated against ICI 2025 industry averages, with strategy-aware bands so the comparison is meaningful.
Pacer Lunt Large Cap Alternator ETF (NYSEARCA:ALTL - Get Free Report) shares rose 0.4% during mid-day trading on Tuesday. The company traded as high as $44.16 and last traded at $44.06. Approximately 9,921 shares traded hands during mid-day trading, a decline of 16% from the average daily volume of 11,825 shares. The stock had
ALTL is a market-timing ETF alternating between high-beta and low-volatility strategies, represented by SPHB and SPLV, based on a proprietary relative strength signal. Since its inception, it's substantially lagged behind SPY, logging an unimpressive 42% win rate over the last 50 months. ALTL has done little to justify its 0.61% expense ratio. Besides the poor win rate, SPHB and SPLV are sub-optimal single-factor choices that come with significant growth and quality sacrifices.
ALTL alternates between a low-volatility and high-beta S&P 500 portfolio based on a relative strength signal. Fees are 0.60%, and ALTL has outperformed the S&P 500 since June 2020. However, don't be fooled by this "outperformance". ALTL has only selected the winning portfolio 48% of the time. ALTL beat SPY because the high-beta portfolio was preferable more times.