ETF Research Center

USAI tracks an index of US and Canadian MLPs involved in midstream energy infrastructure. The fund holds fixed percentages of different categories of holdings.

FUND BASICS
Category	US Equities
Fund Sponsor	Pacer Financial
Website	www.paceretfs.com
Inception date	Dec 13, 2017
Assets (mns)	$11
Currency	USD
Expense ratio	75 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Tiered
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	35
Wgt avg mkt cap (mns)	$21,584
Large cap (>$10bn)	60.5%
Mid cap ($2-10bn)	23.9%
Small cap (<$2bn)	15.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	60.9 %
ENBRIDGE INC	7.6 %
TRANSCANADA CORP	7.6 %
KINDER MORGAN INC	7.5 %
ONEOK INC	7.3 %
ENTERPRISE PRODUCTS PARTNERS	7.1 %
WILLIAMS COS INC	6.8 %
PEMBINA PIPELINE CORP	4.5 %
CHENIERE ENERGY INC	4.3 %
ENERGY TRANSFER EQUITY LP	4.2 %
TARGA RESOURCES CORP	4.0 %

TOP COUNTRY EXPOSURE
	UNITED STATES	67.5 %
	CANADA	28.9 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
21.6%	21.6%	--	--	0.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.04	50%
MSCI EAFE	1.15	47%
MSCI Emg. Mkts.	0.79	36%

Technical Indicators
Recent close	$22.83
30d moving avg.	$23.33
Annualized volatility	21.5%
Short interest (ETF)	0.2%
Relative strength (RSI)	59

Liquidity measures
Avg. volume (thou.)	4
Turnover	0.8%
Bid/Ask (% of price)	0.31%
ADV underlying (mns)	$2,139

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 18 potential alternatives to the Pacer American Energy Independence ETF ETF based on the alternatives' overlap in portfolio holdings with USAI. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

USAI

Expense:

75 bp

ALTAR Score™:

2.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH USAI
Ticker	Fund Name	Overlap¹ vs USAI (%)	Expense ratio (bp)	Savings vs USAI (bp)	ALTAR Score™ (%)	ALTAR vs USAI (%)
ENFR	Alerian Energy Infrastructure	81.3	55	20	3.9	+1.9
YMLP	Yorkville High Income MLP	81.2	84	-9	3.8	+1.8
MLPX	Global X MLP & Energy Infrastructure	76.0	45	30	3.8	+1.8
TPYP	Tortoise North American Pipeline	73.0	40	35	4.5	+2.5
EMLP	First Trust N. American Energy Infrastructure	42.0	95	-20	4.6	+2.6
TOLZ	ProShares Global Infrastructure	29.9	46	29	4.9	+2.9
GHII	Invesco S&P High Income Infrastructure	28.6	45	30	5.2	+3.3
GLIF	AGFiQ Global Infrastructure	22.6	45	30	4.9	+2.9
AMZA	InfraCap MLP	21.4	240	-165	5.2	+3.3
AMLP	Alerian MLP ETF	21.0	85	-10	4.5	+2.6
IGF	iShares S&P Global Infrastructure	20.2	46	29	4.5	+2.6
GII	SPDR FTSE/Macquarie Global Infrastructure	20.0	40	35	4.6	+2.6
FTXN	First Trust Nasdaq Oil & Gas	20.0	60	15	4.2	+2.3
MLPA	Global X MLP	19.2	45	30	4.2	+2.2
INFR	Legg Mason Global Infrastructure	18.5	40	35	5.3	+3.4
PXI	Invesco Dynamic Energy Sector	17.9	60	15	0.4	-1.6
JHME	John Hancock Multifactor Energy	16.1	40	35	3.2	+1.3
ZMLP	Direxion Zacks MLP High Income	12.8	65	10	6.7	+4.7

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Pacer American Energy Independence ETF
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	4.6	%
Divided by: Fwd. P/BV	1.7	x
Less: Expense ratio	75	bp
Equals: ALTAR Score	2.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.43	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.