(FLRT) Pacer Pacific Asset - Ratings and Ratios

The Pacer Pacific Asset Floating Rate High Income ETF (FLRT) is an actively managed exchange-traded fund that focuses on delivering high income through a concentrated portfolio of adjustable rate securities, primarily investing in senior secured floating rate loans. This investment strategy is designed to capitalize on the potential for higher yields in the high-yield or junk bond market, while mitigating interest rate risk through the use of floating rate instruments.

By investing at least 80% of its net assets in senior secured floating rate loans and other adjustable rate securities, FLRT is positioned to benefit from its exposure to the high-yield segment of the debt market. The funds investments are typically characterized by lower credit ratings, indicating a higher risk profile, but the senior secured nature of many of these loans provides a level of protection, as they are backed by collateral. The Sub-Advisers role is crucial in assessing the creditworthiness of unrated securities to ensure they align with the funds risk-return objectives.

From a technical analysis perspective, FLRTs price action suggests a relatively stable trend, with the short-term Simple Moving Average (SMA20) at $47.39 and the long-term SMA200 at $46.35, indicating a potential support level. The Average True Range (ATR) of 0.08 represents a daily volatility of 0.18%, reflecting a moderate level of price fluctuation. Given the current SMA20 and SMA50 ($46.94) positions, a potential bullish signal could emerge if the price consolidates above $47.39, potentially targeting the 52-week high of $47.58.

Fundamentally, FLRTs Assets Under Management (AUM) stand at $504.46 million, indicating a reasonable scale for an ETF in this category. The funds focus on floating rate securities can provide a natural hedge against rising interest rates, potentially making it an attractive option in a rising rate environment. However, the high-yield nature of its investments means that FLRT is sensitive to credit market conditions and economic downturns.

Forecasting FLRTs performance involves considering both technical and fundamental factors. If the current trend continues and the funds price consolidates above its SMA20, it may challenge its 52-week high. Additionally, if interest rates continue to rise, FLRTs focus on floating rate securities could attract more investors seeking to capitalize on higher yields, potentially driving the AUM higher. However, any signs of economic instability or widening credit spreads could negatively impact FLRT due to its exposure to high-yield securities. Therefore, a balanced view considering both the macroeconomic environment and technical indicators is essential for investors.