Summary
FLRT Chart
FLRT: Outperforming Other Floating Rate ETFs With A Higher Risk
FLRT offers a high 7% yield by investing primarily in non-investment-grade floating-rate loans with a flexible strategy. The portfolio is well-diversified, with 204 holdings, 53% in bank loans, 32% in CLOs, and 78% rated below investment grade. Compared to peers, FLRT delivers the highest yield and total return since 2016, but also comes with higher volatility, deeper drawdowns, and higher fees.
FLRT: Still A Robust Hold, 7% Yield
Pacer Pacific Asset Floating Rate High Income ETF strategically blends leveraged loans and CLO tranches, with a notable and commendable large cash position, reflecting prudent management in a tight credit spread environment. The ETF exhibits exceptionally low historical volatility and shallow drawdowns, attributed to the floating-rate nature of its holdings and its focus on higher-quality below-investment-grade debt. FLRT offers a respectable yield with "honest" distributions, meaning the yield is generated by the underlying assets, avoiding return of capital.
FLRT: For Higher Rates And Tight Credit Spreads
Elevated rates are great for floating rate funds. FLRT focuses on non-investment grade holdings which have done well in this cycle. So long as we have elevated rates and a strong economy, this fund makes sense to consider allocating to.
Pacer Pacific Asset Floating Rate High Income ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 15,437 | $731,618.83 | $721,834.12 | -$9,784.71 | -1.34% |
| BS Barrett Schultz Ashton Thomas Securities LLC | 64,424 | $2.98M | $3.01M | $28,991.24 | 0.97% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 26,308 | $1.22M | $1.23M | $10,414.54 | 0.85% |
 John Ledford FWG Holdings LLC | 24,322 | $1.16M | $1.14M | -$19,075.93 | -1.65% |
| AWM Accurate Wealth Management LLC Accurate Wealth Management LLC | 22,590 | $1.06M | $1.06M | -$3,446.04 | -0.33% |
Pacer Pacific Asset Floating Rate High Income ETF (FLRT) FAQ
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Pacer Pacific Asset Floating Rate High Income ETF Profile
| ARCA Exchange | US Country |
Overview
The fund outlined is an investment vehicle focused on generating returns from a portfolio mainly comprised of income-producing adjustable rate securities. It strategically aims to invest a significant portion of its assets in senior secured floating rate loans and other adjustable rate instruments. By design, the fund gravitates towards investments in securities that are primarily below investment grade, commonly referred to as high yield securities or "junk bonds". These are either rated below investment grade or considered of comparable quality by the Sub-Adviser, if unrated. The fund’s investment strategy involves maintaining a focused portfolio with at least 80% of its net assets dedicated to its core investment targets under normal circumstances, aligning with investors seeking higher income opportunities in exchange for assuming higher risk levels associated with below investment-grade investments.
Products and Services
- Senior Secured Floating Rate Loans
These are loans that have a priority claim on the borrower's assets or revenues and bear interest rates that adjust periodically with market rates. The fund invests in these loans as they offer potentially higher yields and security through asset backing.
- Adjustable Rate Securities
Includes a broader category of investments such as bonds, notes, or other financial instruments that feature interest rates which adjust over time based on market conditions. These securities are sought after for their potential to provide income that keeps pace with rising interest rates.
- High Yield Securities (Junk Bonds)
These are bonds rated below investment grade due to the higher risk of default. However, they offer higher interest rates compared to more creditworthy government and corporate bonds, making them attractive for income-focused investors willing to accept higher volatility and risk.
