What Is the PALC ETF? A Complete Guide to Returns, Fees, Holdings and Alternative ETFs
The Pacer Lunt Large Cap Multi-Factor Alternator ETF (PALC) is a rules-based ETF that alternates exposure to US large-cap stocks across factors such as momentum, quality and value. The key selection criteria are its management fee, quarterly dividends, the factor rotation outlook, and how it differs from a standard core ETF.
SubscribeWhat Is the Pacer Lunt Large Cap Multi-Factor Alternator ETF?
This is a rules-based ETF that tracks Lunt Capital's US large-cap multi-factor rotation index. It invests in US large-cap stocks and alternates its exposure toward whichever factor looks relatively stronger among several, including momentum, quality, value and low volatility.
It suits investors who want factor-based, differentiated large-cap exposure rather than a plain market-cap-weighted index.
It is a passive (index-tracking) ETF managed by Pacer.
How Does the Pacer Lunt Large Cap Multi-Factor Alternator ETF Invest?
| Item | Details |
|---|---|
| Tracked index | Lunt Capital US Large Cap Multi-Factor Rotation Index |
| Management style | Passive (rules-based index tracking) |
| Rebalancing frequency | Periodic (per the index methodology) |
| Dividend frequency | Quarterly |
| Issuer | Pacer |
| Total expense ratio | 0.60% |
The fund uses a rules-based methodology that evaluates several factors, such as momentum, quality, value and low volatility, within the US large-cap universe and alternates exposure toward the factor that looks relatively stronger. It is designed to shift weight toward the leading factor as market conditions change, so that it is not locked into a single factor.
- An alternator approach that rotates between factors
- Objective, rules-based stock selection
Pacer Lunt Large Cap Multi-Factor Alternator ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $192.8M, and the total expense ratio is 0.60% per year.
Pacer Lunt Large Cap Multi-Factor Alternator ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe fund broadly follows the US large-cap market, but depending on which factor is in favor, it can move differently from the market index. Because of the factor rotation, its performance can diverge from that of a standard large-cap index during periods of transition.
Demand for factor investing and demand for large-cap core assets form the backdrop for fund flows. When market volatility rises, investor attention tends to concentrate on the shift of exposure toward defensive factors such as low volatility.
Pacer Lunt Large Cap Multi-Factor Alternator ETF Pros and Cons
Its strength is differentiated large-cap exposure through factor rotation, while the tracking gap versus a standard index, inherent in a rules-based strategy, can be a drawback.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Pacer Lunt Large Cap Multi-Factor Alternator ETF
Comparable products include other smart-beta ETFs that hold US large-cap stocks using fundamental weighting or enhanced research methods. For broad exposure to US large caps through simple market-cap weighting, the lower-cost core ETFs VOO and IVV are also worth considering, and they serve as alternatives for investors who prioritize cost and simplicity.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 FNDX | Schwab Fundamental U.S. Large Company ETF | $32.71 | -0.6% | $28.6B | 0.25% | 1.44% | +23.3% |
 PRF | Invesco RAFI US 1000 ETF | $56.13 | -0.8% | $10.2B | 0.34% | 1.32% | +23.1% |
 FNDA | Schwab Fundamental U.S. Small Company ETF | $35.98 | -1.3% | $9.0B | 0.25% | 1.23% | +17.6% |
 RECS | Columbia Research Enhanced Core ETF | $44.93 | -1.5% | $6.2B | 0.15% | 0.72% | +10.0% |
 JHMM | John Hancock Multifactor Mid Cap ETF | $73.57 | -1.3% | $6.1B | 0.41% | 0.89% | +14.8% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| XOM | ExxonMobil Holdings Corp | 0.03% | $187.25 | +2.2% | $770.0B | 24.1 | 2.22% |
| MA | Mastercard Incorporated | 0.03% | $638.01 | +0.4% | $559.2B | 33.4 | 0.57% |
| V | Visa Inc | 0.05% | $413.59 | +0.7% | $782.4B | 34.4 | 0.75% |
| COST | Costco Wholesale Corp | 0.02% | $1012.28 | +1.6% | $448.6B | 48.8 | 0.57% |
| AAPL | Apple Inc | 0.05% | $344.63 | -1.2% | $5.03T | 39.5 | 0.32% |
| GEV | GE Vernova Inc | 0.02% | $857.87 | -3.4% | $227.1B | 22.5 | 0.23% |
| LRCX | Lam Research Corp | 0.02% | $239.11 | -6.0% | $298.7B | 35.6 | 0.55% |
| UNH | Unitedhealth Group Inc | 0.02% | $406.97 | -1.0% | $365.3B | 23.2 | 2.21% |
Investor Checkpoints for the Pacer Lunt Large Cap Multi-Factor Alternator ETF
These are the points to review before investing in PALC. A multi-factor rotation strategy differs in character from a standard large-cap index, so it is worth checking the strategy, costs and concentration in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 🔄 Factor strategy | Whether you understand the rotation approach | Needs review |
| 💵 Expense ratio | Cumulative impact over a long holding period | Annual fee applies |
| 📊 Large-cap exposure | Degree of diversification across US large caps | Large-cap focused |
| 💱 Exchange rate | Impact on returns converted into won | No currency hedge applied |
A factor rotation strategy can diverge from a standard large-cap index, and if the timing of a regime shift is misjudged, results may differ from expectations. Even though it is rules-based, losses are hard to avoid in market downturns.
It is a suitable choice for investors who want factor-based, differentiated large-cap exposure beyond simple index tracking. If cost and simplicity are the priority, we recommend also comparing core ETFs such as VOO and IVV.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 18, 2026.
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