Pacer Lunt MidCap Multi-Factor Alternator ETF

PAMC

Market cap $60.3M

PAMC selects mid-cap stocks based on a factor rotation strategy involving high or low momentum, quality, value, and volatility. PAMC has a 0.60% expense ratio and $75 million in assets. The strategy is proprietary, but I believe key inputs are yield changes. The sharp increase from September to January coincides with PAMC's rotation to low quality, highly volatile stocks. PAMC has outperformed its benchmark, but its win rate is only 51.8%, casting doubt on the strategy's long-term usefulness. Furthermore, its success is mainly due to emphasizing the momentum factor.