Pacer ETFs acquires American Energy Independence ETF
Pacer ETFs (Pacer), an ETF provider that offers passive rules-based strategies, has acquired American Energy Independence ETF (USAI).
The fund, which has been renamed as the Pacer American Energy Independence ETF, offers investors exposure to the growth potential of infrastructure development supporting domestic energy supplies. Analysts anticipate that through 2025, the US will continue its leadership as the world’s largest oil and gas producer, accounting for almost 20 per cent of global oil production and 25 per cent of natural gas production. The passively managed Pacer USAI fund capitalises on this trajectory by following the American Energy Independence Index, composed of US and Canadian midstream energy infrastructure companies and C-corps as well as master limited partnerships (MLPs) and general partners of MLPs.
“Acquiring USAI has allowed us to continue to expand our offerings and provide advisors and investors with an array of funds that can complement a range of portfolios by enabling access to a wide array of investment opportunities or rules-based strategies,” says Sean O’Hara, president of Pacer ETFs Distributors. “Our priority remains providing best-in-class investment options, which is why we continue to seek investment opportunities we think demonstrate long-term potential. We see the midstream energy infrastructure sector as a market with tremendous opportunity.”
Pacer is no stranger to the investment potential of infrastructure development. The Pacer Custom ETF Series includes three thematic REIT ETFs that target growth opportunities in e-commerce, retail and technological infrastructure. The incorporation of the midstream energy sector is a natural addition to Pacer’s portfolio offerings. The sectors that the Pacer USAI fund gives investors access to offers several attributes, including high potential income and real assets which can provide inflation-protected cash flows.
“Pacer’s growing success is a reflection of our steadfast dedication to quality while ensuring that our fund offerings meet the evolving needs of investors,” says Joe Thomson, founder and president of Pacer Financial, a strategic partner of Pacer ETFs. “This acquisition marks another milestone as we draw closer to the end of an excellent year for the firm. We look forward to continuing that success in 2020 and bringing new and exciting opportunities to our investors and partners.”