FLRT Profile
The Pacer Pacific Asset Floating Rate High Income ETF aims to deliver high current income through a portfolio predominantly composed of adjustable rate securities. Under typical market conditions, the fund is committed to investing at least 80% of its net assets in senior secured floating rate loans and other adjustable rate instruments. These investments are designed to provide income that adjusts with changes in interest rates, potentially offering protection against interest rate volatility.
The ETF primarily targets floating rate loans and adjustable rate securities that are rated below investment grade, commonly referred to as high yield or "junk" bonds. These securities are characterized by higher yields compared to investment-grade bonds, compensating investors for the increased credit risk. The fund may also include unrated securities if they are assessed by the Sub-Adviser to be of comparable quality to the rated securities.
In addition to focusing on high yield, adjustable rate securities, the fund employs a strategic approach to portfolio management to enhance income while managing risk. The Sub-Adviser utilizes a thorough credit analysis and market research to select securities that align with the fund's income objectives and risk tolerance. The dynamic nature of floating rate securities provides the potential for higher returns in a rising interest rate environment.
Pacer Financial, known for its expertise in designing investment solutions, manages the fund with an emphasis on income generation and risk management. The Pacer Pacific Asset Floating Rate High Income ETF reflects the firm's commitment to leveraging its investment capabilities to offer a targeted income strategy that responds to interest rate fluctuations and credit market conditions.
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