Pacer Lunt Large Cap Multi-Factor Alternator ETF

Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) tracks the Lunt Capital U.S. Large Cap Multi-Factor Rotation Index. Each month, that index picks two of eight factor-based slices of the S&P 500, built around momentum, quality, value and volatility, and holds their stocks. Its 0.60% expense ratio is well above the 0.16% average of similar funds. Its 451% portfolio turnover shows how often it trades as it switches between styles.

• Over the year to Oct 27, 2026, PALC returned +2.9%, 7th of 9 among similar funds.
• Its 5-year annualized return was +6.5%.
• Its worst full calendar year was 2022 (-14.7%); its best was 2024 (+21.3%).
• The deepest fall in its price history was 24.4% (Nov 5, 2021 to Sep 30, 2022), recovered by Jan 29, 2024.

As of Jul 31, 2026, the fund held 177 securities; the ten largest made up 22.34% of assets. It also reported 5.32% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $22.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.97%, +3.89%, -7.43%.

PALC is an index fund from Pacer Advisors. It tracks an index designed by Lunt Capital Management. The index chooses from eight sub-indices that S&P Dow Jones Indices calculates. Each one holds 100 stocks, or one-fifth, of the S&P 500. For each of four factors (momentum, quality, value and volatility), there is a top-quintile version and a bottom-quintile version. A factor is a trait that some investors believe drives returns. For example, the S&P 500 Momentum Index holds recent winners, and the S&P 500 Low Volatility Index holds the steadiest stocks.

On the last trading day of each month, Lunt gives each sub-index a "Risk-Adjusted Score." This is a relative-strength measure that ranks how well each slice is performing for the risk it takes. The index then holds the stocks of the two highest-scoring sub-indices. If those two are opposite ends of the same factor, it takes the first and third instead. The index rebalances monthly unless the picks stay the same.

The fund buys every stock in the index and aims for a correlation of 95% or better with it. It is non-diversified, which means it can concentrate in fewer companies. As of July 31, 2026, it held 177 stocks, and the top 10 made up 22% of the fund. The largest were Mastercard (2.7%), Visa (2.6%) and Apple (2.5%). The whole portfolio can change in a single month.

• PALC charges 0.6% a year, versus an average of 0.16% for the similar funds below (8th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).

PALC holds large US stocks but makes a monthly tactical bet on investing styles at a cost far above broad index funds, so it fits better as a smaller position than as a core holding.

PALC could add a rules-based style-rotation approach to the US stock part of a portfolio. Its price history starts in February 2021, so it has no record for the 2008 or 2020 crashes. In the 2022 bear market, it fell 23.2% between January 3 and September 30, 2022, and only recovered on January 24, 2024. Its deepest drop was 24.4%, and recovery took about 16 months after the September 2022 low. Its worst calendar year was 2022, at -14.7%. Someone who had to sell shares for spending during a stretch like that would lock in losses. It yielded 1.29% as of October 27, 2026, paid quarterly. In the SEC's standard example, $10,000 invested would cost $61 in fees over one year and $750 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.