Pacer American Energy Independence ETF
Top 10 Holdings
What is USAI?
USAI is passively managed, and seeks to track the American Energy Independence Index before fees and expenses. Many ETFs that invest in energy infrastructure have substantial investments in publicly traded partnerships such as MLPs, which can result in them being structured as C Corporations and therefore subject them to U.S. Federal corporate income tax. The American Energy Independence ETF seeks to keep its holdings of MLPs below the 25% threshold, since it seeks to be Regulated Investment Company or RIC-compliant and therefore not subject to U.S. Federal corporate income tax. The American Energy Independence Index is comprised of U.S. and Canadian energy infrastructure companies, Master Limited Partnerships (MLPs) and General Partners (GPs) of MLPs. Growing production of crude oil, natural gas and natural gas liquids is increasing the need for new infrastructure to move, process and store this output. This in turn reduces the need for the U.S. to rely on imports to meet its energy needs. It is therefore anticipated that as the U.S. becomes ever more energy independent, this will benefit North American infrastructure businesses, MLPs and GPs.
ETFs related toUSAI
ETFs correlated to USAI include MLPX, EMLP, IGE
What is ETF correlation?
Correlation is a measure of the strength of the relationship between two ETFs. It quantifies the degree to which prices of the two ETFs typically move together.
Here, correlation is measured over the past year with the Pearson correlation coefficient (Pearon’s r), which ranges from -1 to 1.
Using ETF correlations in portfolio and strategy construction
ETF correlations can help you create investing strategies and portfolios. Use them to:
- •Build a diversified portfolio from uncorrelated or inversely correlated ETFs with the aim of minimizing portfolio risk.
- •Compare correlated or related ETFs to find one with a lower expense ratio or higher trading volume.
- •Create an investing strategy that hedges an ETF with an uncorrelated or inversely correlated ETF.
We show information directly obtained from our data provider, Xignite. Data shown here is provided by Xignite, an unaffiliated third party. Composer believes the information shown here is reliable, but has not been verified and there is no guarantee that the information is accurate.
We show information based on calculations performed by Composer using data from our provider. Information provided here is based on calculations performed by Composer using data sourced from Xignite, an unaffiliated third party. Composer believes this information is reliable, but has not verified the data and there is no guarantee that the calculations are accurate.