Pacer launches logistics and digital revolution thematic ETFs

Jun 14th, 2022 | By | Category: Equities

Pacer ETFs has unveiled two new thematic equity ETFs targeting companies involved in supply chain logistics and firms that are enabling the digital revolution.

Sean O’Hara, President of Pacer ETFs Distributors

Sean O’Hara, President of Pacer ETFs Distributors.

The Pacer Industrials and Logistics ETF (SHPP US) and Pacer Data and Digital Revolution ETF (TRFK US) have been listed on NYSE Arca with expense ratios of 0.60%.

The ETFs track proprietary indices developed by Pacer which select their constituents from a global universe of developed market stocks with market capitalizations above $1 billion and average daily trading volumes greater than $2 million.

Eligible companies must derive at least 50% of their revenue from qualifying business activities.

For the logistics ETF, these activities include the transportation of products by air, ocean, rail freight, and long and short-haul trucking; the provision of software aimed at maximizing supply chain efficiencies; the manufacture of hardware such as robotics, forklifts, and conveyor belts; and the provision of supply chain consulting services.

The digital revolution ETF, meanwhile, covers a broad range of companies that are involved in the use, transmission, encryption, or storage of data. Some of the main business categories include electrical equipment and components; computer storage capabilities; computer and telephone equipment; data processing and hosting services; software publishing; semiconductor manufacturing; wireless communications; cybersecurity; satellite and digital telecommunications; and commercial machinery;

Chosen index constituents are weighted by float-adjusted market capitalization while capping the weight of any single stock at 10% and the cumulative weight of stocks above 4.5% at 45%. 

Sean O’Hara, President of Pacer ETF Distributors, said: “Global supply chain shortfalls and increased demand for high-tech data resources have impacted every sector of the market. SHPP and TRFK were launched to offer advisors direct access to the companies supplying the infrastructure, operational, and logistics support that must be built out before both of these global issues are resolved. We believe these ETFs provide opportunities to capitalize on global long-term trends that address and strengthen supply chains, as well as enhance all aspects of the digital revolution.”

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