A strength of Pacer is that its product shelf of open-end and exchange-traded funds is, on average, offered at a minimal cost, suggesting that it considers what's best for its investor base. On average, fees for funds are in the second-lowest quintile of respective category peers. Pacer's longest-tenured managers do not possess the same experience as management teams at other firms, a detractor from its rating. Specifically, average tenure within the firm is only five years. Portfolio management turnover at Pacer is higher than at peer firms, detracting from the overall assessment of the firm's stewardship. Turnover in the portfolio-management ranks can happen for a number of reasons, including mergers and liquidations, portfolio managers moving into other roles, or portfolio managers leaving the firm. In some cases, such change may not signal a serious or immediate problem at the firm, but can still be disruptive for investors, hinder the effectiveness of a firm’s investment processes, or suggest a weaker investment culture.
Worst-Performing Stock ETFs of the Quarter
ARK Innovation ETF and Pacer US Small Cap Cash Cows 100 ETF were among the worst-performing ETFs in Q2 2024.