Megaphone icon ETF Database is now VettaFi. Read More >
ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • Entrepreneur ETF
    • Equity ETF
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Future ETFs
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Modern Alpha
    • Multi-Asset
    • Multi-Factor
    • Nasdaq Investment Intelligence
    • Portfolio Strategies
    • Retirement Income
    • Smart Beta
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Videos & Podcasts
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. ETF of the Week: Pacer Industrials and Logistics (SHPP)
News
Share

ETF of the Week: Pacer Industrials and Logistics (SHPP)

Karrie GordonJun 16, 2022
2022-06-16

VettaFi’s vice chairman Tom Lydon discussed the Pacer Industrials and Logistics ETF (SHPP) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.”

Despite supply-side struggles, demand for goods has not only remained elevated but has actually increased in the last year, providing steady demand pressures for global supply chains.

“What this means is those companies that are involved in supplying the infrastructure, operations, logistics, there aren’t as many that are out there,” Lydon explained. “For these companies that are serving that area of the marketplace, business is good; profitability is great as well.”

It’s a new fund to come to market, but in a challenging market environment of rising rates and inflation, it’s an opportunity to invest in an area of the market that likely will continue to have positive performance pressures. The supply chain issues are expected to continue, particularly given the larger global macro environment and issues.

“For example, when you look at Apple, Apple continues to have strong demand, but you’ve got different companies across the globe that affect each piece that then has to be transported from A to B to make this whole thing work,” Lydon said.

Strong demand means that if a company such as Apple encounters issues in receiving a product, they are going to be more willing to pay higher prices to ensure they have the parts delivered that are necessary for their products.

The index that the fund seeks to track, the Pacer Global Supply Chain Infrastructure Index, is a rules-based index, something that Jaffe believes lends credence to the ability to invest in the fund right from the start. Additionally, the fund also offers dividend potential, with the dividend yield currently over 3%.

“What that says is these companies that are part of the supply chain infrastructure are profitable, and with those profits, they’re kicking off higher dividends to their shareholders,” Lydon said.

Over half of the index is comprised of cargo transportation and infrastructure services, industries that are not expected to experience slowing anytime soon, with prices on the rise that can be passed on to consumers.

“I think if you look at the S&P 500, and now that we’ve touched on bear market territory, you’re going to see more and more of these shifts in areas of the market that, at least in the short-term, seem to be more stable,” Lydon explained.


Content continues below advertisement

Listen to the Entire ETF of the Week Episode Featuring Tom Lydon:

For more podcast episodes featuring Tom Lydon, visit our podcasts category.

For more podcast episodes featuring Tom Lydon, visit our podcasts category.

» Popular Pages

  • Tickers
  • Articles

Jun 30

Are U.S. Equities Overrated?

Jun 30

RSP Increases On Utilities and Real Estate Gains

Jun 30

China Tech Stocks See Reconvened Buyer Interest

Jun 30

Grayscale Sues Over SEC’s Denial For Fund Conversion

Jun 30

Crypto Logs: Bitcoin ETFs and Index-Based Crypto ETFs

Jun 30

ETF of the Week: iMGP DBi Managed Futures Strategy ETF

Jun 30

LGBTQ Americans Less Confident Saving for Retirement

Jun 30

See Opportunity in China? CXSE Invests in Non-State-Owned Companies

Jun 30

BondBloxx Debuts Duration-Focused Emerging Market ETF

Jun 30

BlackRock Launches Investment Grade Corporate Bond ETF

QQQ

Invesco QQQ Trust

SPY

SPDR S&P 500 ETF Trust

VOO

Vanguard S&P 500 ETF

TQQQ

ProShares UltraPro QQQ

ARKK

ARK Innovation ETF

SCHD

Schwab US Dividend Equity ETF...

VTI

Vanguard Total Stock Market...

XLE

Energy Select Sector SPDR...

VNQ

Vanguard Real Estate ETF

XLV

Health Care Select Sector...


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
  • Mission Statement
  • Press
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © ETF Flows LLC
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X