(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 diversified portfolio of adjustable rate securities, primarily investing in senior secured floating rate loans. This investment strategy is geared towards capitalizing on the potential for higher yields offered by high-yield or junk bonds, which are securities rated below investment grade or those deemed to be of comparable quality by the funds Sub-Adviser.

By concentrating on floating rate instruments, FLRT aims to mitigate the impact of interest rate fluctuations, as the income generated by these securities adjusts in line with prevailing interest rates. This characteristic can make the fund more attractive in rising interest rate environments, as the yield on its holdings can increase, potentially offsetting the negative effects of inflation or rate hikes on fixed-income investments.

Given its investment in high-yield securities, FLRT is positioned to offer higher returns compared to investment-grade bond funds, albeit with a higher risk profile due to the lower credit quality of its holdings. Investors should be aware that the funds exposure to below-investment-grade securities means it is more susceptible to credit risk, where the issuer may default on their obligations.

From a technical standpoint, analyzing the provided data, FLRTs price is currently above its 20-day, 50-day, and 200-day Simple Moving Averages (SMA20, SMA50, SMA200), indicating a positive trend. The Average True Range (ATR) of 0.28 suggests relatively low volatility. With the 52-week high being $47.02 and the low $44.31, the current price of $46.87 is near the upper end of its recent trading range, suggesting potential resistance at the 52-week high.

Forecasting future performance, if interest rates continue to rise, FLRTs focus on floating rate securities could lead to increased income generation, potentially driving the funds price higher. Conversely, a decline in interest rates could reduce the attractiveness of its holdings compared to fixed-rate securities. Given the current price near the 52-week high and the relatively stable trend indicated by the moving averages, a break above $47.02 could signal further upside potential, while a drop below $46.16 (SMA200) might indicate a reversal in the trend. Therefore, investors should closely monitor interest rate movements and credit market conditions to gauge the funds future prospects.