USAI Profile
The Pacer American Energy Independence ETF is an exchange-traded fund focused on providing investors with exposure to companies engaged in the North American energy sector. Under normal market conditions, the fund commits at least 80% of its total assets, excluding any collateral from securities lending, to securities that are components of the index it tracks, as well as depositary receipts representing foreign securities. This allocation strategy aims to capture the performance of a select group of companies within the energy industry that are critical to the sector’s growth and stability.
The index employed by the fund utilizes a proprietary, rules-based methodology designed to gauge the performance of a portfolio consisting of U.S. and Canadian equities. These companies are specifically chosen for their substantial involvement in generating cash flow from energy-related activities. This includes, but is not limited to, businesses engaged in exploration, production, and distribution of energy resources. The index focuses on identifying firms that are integral to the energy infrastructure, thereby reflecting the sector's dynamic and evolving nature.
The fund's investment strategy revolves around capturing the performance of companies that contribute significantly to North American energy independence. By targeting firms with a substantial portion of their revenue derived from energy-related operations, the fund aims to provide investors with opportunities to benefit from the sector’s growth potential. This includes companies involved in traditional energy resources as well as those advancing innovative energy solutions.
As a sector-specific fund, the Pacer American Energy Independence ETF is exposed to the inherent volatility and risks associated with the energy market. Fluctuations in energy prices, regulatory changes, and geopolitical factors can significantly impact the performance of the underlying securities. Investors should consider these factors and ensure that the fund aligns with their investment objectives and risk tolerance, especially given its concentrated focus on the energy sector.
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