ALTL rotates between growth and value stocks based on relative momentum, aiming to own whichever style is outperforming. This tactical approach tries to capture the best of both worlds by switching horses mid-race rather than picking a permanent side.
How It Works
The fund uses Pacer's proprietary momentum signals to alternate between 100% large-cap growth or 100% large-cap value exposure, never blending the two. Rebalancing occurs monthly, with the entire portfolio flipping when momentum shifts. The underlying holdings come from established S&P 500 growth and value indices, so you're getting familiar names but with aggressive style timing.
Key Features
- All-or-nothing approach avoids diluted returns from holding both styles simultaneously
- Monthly rebalancing captures style rotations faster than quarterly-rebalanced competitors
- Zero expense ratio makes frequent style switching cost-effective versus doing it yourself
Risks
- Whipsaw risk when styles rapidly reverse — could sell low and buy high repeatedly in choppy markets
- 100% concentration in one style means missing diversification benefits when both perform well
- Momentum signals can lag major turning points, potentially catching the tail end of trends
Who Should Own This
Best for tactical allocators who believe style leadership is predictable but don't want to time it themselves. Works as a satellite holding for investors convinced that growth-value cycles are getting more extreme. Not for buy-and-holders who prefer consistent style exposure or those who get nervous watching their entire equity allocation pivot monthly.