In an ever-changing market atmosphere, fairness issue investments expertise ebbs and flows. Whereas this cyclicality could frustrate some traders, it affords forward-thinking advisors the chance to probably revenue in each the nice instances and the dangerous.
Within the upcoming webcast, Issue Rotation Methods Could Assist You Revenue in Various Market Cycles, Sean O’Hara, President, Pacer ETFs Distributors; and John Lunt, President, Lunt Capital Administration, will spotlight a factor-based funding technique that alternates its tilt towards S&P 500 funding elements because the market itself adjustments.
Particularly, the Pacer Lunt Massive Cap Alternator ETF (ALTL) is an index-based ETF that goals to rotate between high-beta and low-volatility shares listed within the S&P 500 Index.
The excessive beta index is an index comprised of shares which might be most delicate to adjustments in market returns.
The low volatility index is an index comprised of shares that exhibit cheaper price volatility than the general market common.
“Each Low Volatility and Excessive Beta elements have traditionally exhibited durations of outperformance. The Lunt Capital U.S. Massive Cap Fairness Rotation Index is revolutionary as a result of it makes use of a rules-based technique to alternate between the Excessive Beta and Low Volatility elements,” in accordance with Pacer ETFs.
Moreover, the Pacer Lunt Massive Cap Multi-Issue Alternator ETF (PALC) is a passively managed fund that rotates amongst worth, high quality, volatility, and momentum shares throughout the S&P 500 Index.
An element is an attribute that may assist clarify the long-term dangers and returns of an asset. Components may be divided into each excessive and low elements. Momentum describes the tendency of high-performing shares to proceed performing properly within the close to future. High quality covers the traits that contribute to an organization’s sturdy enterprise mannequin and sustainable aggressive benefit. Worth is a measurement of a inventory’s market worth relative to its intrinsic worth. Lastly, volatility covers the measurement of variance of returns for a safety or index.
Monetary advisors who’re concerned about studying extra concerning the issue rotation technique can register for the Tuesday, June 22 webcast right here.
Learn extra on ETFtrends.com.
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.