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This exchange-traded fund (ETF) utilizes a systematic approach to foster capital appreciation over the long term. It achieves this by dynamically shifting its allocation among prominent investment factors – namely momentum, quality, value, and volatility – exclusively within the constituents of the S&P 500 index.
Is PALC'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 Multi-Factor Alternator ETF (NYSEARCA:PALC - Get Free Report) was the target of a significant decline in short interest in December. As of December 31st, there was short interest totaling 206 shares, a decline of 19.2% from the December 15th total of 255 shares. Based on an average daily volume of 25,983
PALC is a large-cap factor rotation ETF that has outperformed SPY by 13.33% since its launch four years ago. Its expense ratio is 0.60%. Each month, managers select two of eight factor regimes based on the high/low pairs of momentum, quality, value, and volatility. In total, there are 24 possible combinations. PALC's strong performance is linked to February 2021 when it beat SPY by 12.03%. Otherwise, it's slightly lagged behind SPY and consistently does so when emphasizing the Low Quality factor.
Investors can consider a dynamic factor-based exchange traded fund strategy to alternate between S&P 500 investment factors in response to market changes.
Market rotations happen all of the time. There are rotation strategies that can move with the market and help investors maximize gains over time.
Individual factors are proven to create alpha over market long periods or market cycles, but not consistently over short periods. Rotation among multiple factors can improve performance relative to single-factor investments.