Low Volatility
or High Beta?

Whether it’s a cookie, a television episode, or an investing strategy,
sometimes one isn’t enough. The Pacer Lunt Large Cap Alternator ETF (ALTL)
aims to provide an additional option to your low volatility investing strategy.

By alternating exposure between the S&P 500 Low Volatility Index and S&P 500 High Beta Index, ALTL aims to improve your large-cap performance-potential by diversifying what part of the S&P 500 you are exposed to depending on the market environment.

Rotate With The Market

What’s Factor Investing?
A lot has been written about factor investing (including by us), so we’ll keep the explanation short.

A factor is a means of grouping stocks based on specific trackable characteristics; a typical example of a factor is size.

So, factor investing is investing in stocks with similar characteristics because an investor believes those stocks will perform comparably in certain market conditions.

ALTL is a part of our alternating factor family, meaning the ETF can change its exposure to low volatility stocks or high beta stocks monthly, depending on market conditions.

Why Low Volatility or High Beta?
The wisdom of low volatility has been imparted to and implemented by many investors. But this factor also comes with periods of underperformance. And that’s where High Beta comes in to try and offset that underperformance while staying within the S&P 500. Below you can see the performance of both factors over the past decade.

Rotate With The Market

Source: Pacer Advisors, Bloomberg and S&P
Past performance is not indicative of future results. You can not invest in an index.
(1)Benchmarks as Limits to Arbitrage: Understanding the Low Volatility Anomaly, Malcolm Baker, Brendan Bradley and Jeffrey Wurgler, Financial Analysts Journal, January/February 2011
(2)https://www.fool.com/investing/high-growth/2012/12/05/are-high-beta-stocks-a-smart-buy.aspx