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This ETF Issuer Is On A Torrid Growth Pace

April 3, 2019 4:58 pm
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The exchange traded funds industry is dominated by the “Big Three” issuers — iShares, Vanguard and State Street — but there are some upstarts in the industry as well.

Count Pennsylvania-based Pacer ETFs among the fastest-growing upstart ETF sponsors.

What Happened

In just four months, Pacer ETFs added $1 billion in new assets, taking its total ETF assets under management to $4 billion. While $4 billion may not sound like much when measured against an iShares or a Vanguard, it still represents some impressive asset growth for Pacer, which launched its first ETFs in 2015.

“Since inception in 2015, it took two years to amass the first billion dollars in assets under management; one year to reach the two billion mark; six months for the third billion in assets; and the fourth billion in assets came in only four months,” said Pacer.

Why It's Important

Pacer offers 15 ETFs to U.S. investors, the largest of which is the $2.02 billion Pacer Trendpilot US Large Cap ETF (CBOE: PTLC). That ETF uses a trend-following strategy that can have the fund 100 percent invested in the S&P 500, a 50 percent S&P 500 stake and 50 percent in cash or 100 percent in cash depending on market conditions.

Home to $733.25 million in assets under management, the Pacer Trendpilot U.S. Mid Cap ETF (CBOE: PTMC), the mid-cap answer to PTLC, is Pacer's second-largest ETF. Seven Pacer ETFs have more than $100 million in assets under management.

“The company has seen 100% growth in AUM from March 2018 to March 2019 according to data from Morningstar,” according to Pacer. “This makes Pacer ETFs one of the fastest-growing ETF issuers in the industry.”

What's Next

Pacer itself is an upstart ETF sponsor and within its lineup are some upstart funds. Those include the Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (NYSE:SRVR) and the Pacer Benchmark Industrial Real Estate SCTR ETF (NYSE:INDS), which are garnering increased attention as a pair of this year's best-performing real estate ETFs.

INDS and SRVR have taken in nearly $7 million in new assets combined this year and as investors look for new ways to tap the booming 5G and e-commerce trends, those funds could be larger contributors to the Pacer growth story.

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