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QFRD - ETF AI Analysis

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QFRD

Pacer S&P 500 Quality FCF R&D Leaders (QFRD)

Rating:74Outperform
Price Target:
QFRD, the Pacer S&P 500 Quality FCF R&D Leaders ETF, has an overall rating that reflects a portfolio of generally strong, innovative companies with solid financial performance. High-quality holdings like Incyte, Cadence Design, Vertex, and AMD support the fund’s rating through robust profitability, R&D strength, and positive growth outlooks, while some positions such as Coinbase and names with high valuations or mixed technical signals introduce risk and may have modestly held back the score; investors should also note the fund’s tilt toward tech and biotech, which can increase volatility.
Positive Factors
Strong Recent Performance
The ETF has delivered solid gains so far this year and over the past three months, showing positive momentum.
High-Performing Growth Leaders
Several of the largest holdings, such as Datadog, AMD, CrowdStrike, and Palo Alto Networks, have shown strong year-to-date performance, helping drive the fund’s returns.
Focused on Innovative Sectors
Heavy exposure to technology and health care means the fund is tilted toward companies that invest in research and development and can benefit from long-term innovation trends.
Negative Factors
Sector Concentration Risk
With most of the portfolio in technology and health care, the ETF could be hit hard if these sectors fall out of favor.
Limited Geographic Diversification
Almost all assets are invested in U.S. companies, so the fund offers little protection if the U.S. market underperforms other regions.
Moderately High Expense Ratio
The fund’s expense ratio is on the higher side for an ETF, which means more of the returns are used to cover fees instead of going to investors.

QFRD vs. SPDR S&P 500 ETF (SPY)

QFRD Summary

QFRD is an ETF that follows the S&P 500 Quality FCF R&D Leaders Index, focusing on about 50 large U.S. companies that spend heavily on research and development while also generating strong cash flow. It leans toward innovative sectors like technology and healthcare, with well-known names such as Advanced Micro Devices (AMD) and Electronic Arts (EA) in the mix. Investors might consider QFRD if they want growth potential from innovative companies while still emphasizing financially solid businesses. A key risk is that the fund is heavily tilted toward tech and healthcare, so its value can swing more than a broadly diversified market fund.
How much will it cost me?This ETF has an expense ratio of 0.49%, which means you’ll pay about $4.90 per year for every $1,000 you invest. That’s higher than the cost of a typical broad, passively managed S&P 500 index fund because this ETF tracks a more specialized index that focuses on a smaller group of R&D-focused, high-quality companies.
What would affect this ETF?QFRD could benefit if the U.S. economy stays resilient, tech and healthcare innovation remains strong, and lower interest rates or supportive regulations make it easier for its R&D‑heavy companies to grow and turn new ideas into profits. On the other hand, it could be hurt by rising interest rates that pressure growth stocks, tighter rules on big tech or digital assets, or a downturn that hits its concentrated U.S. technology and healthcare holdings harder than the broader market.

QFRD Top 10 Holdings

QFRD is leaning hard into U.S. innovation, with a tech‑heavy lineup that puts cloud, cybersecurity, and chips in the driver’s seat. Datadog is one of the fund’s star performers, with Palo Alto Networks and AMD also helping to power returns despite some recent choppiness. CrowdStrike and Workday are more mixed, with strong long‑term stories but bumpier near‑term trading. On the downside, Coinbase has been dragging the fund, as its slide contrasts sharply with the steadier gains from healthcare names like Incyte and Vertex.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Datadog5.56%$98.13K$81.75B72.34%
69
Neutral
Workday4.32%$76.30K$47.12B-15.29%
73
Outperform
Incyte3.80%$67.01K$25.97B52.62%
81
Outperform
CrowdStrike Holdings3.79%$66.97K$192.63B106.30%
67
Neutral
Advanced Micro Devices3.68%$64.93K$785.11B182.76%
73
Outperform
Palo Alto Networks3.61%$63.79K$276.54B100.42%
73
Outperform
Vertex Pharmaceuticals3.35%$59.11K$138.72B39.66%
78
Outperform
Cadence Design3.30%$58.23K$92.17B-1.90%
78
Outperform
Coinbase Global2.94%$51.99K$47.96B-38.17%
68
Neutral
Synopsys2.79%$49.20K$78.51B-24.06%
73
Outperform

QFRD Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
28.39
Positive
100DMA
27.30
Positive
200DMA
Market Momentum
MACD
0.41
Negative
RSI
66.36
Neutral
STOCH
50.92
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For QFRD, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 29.38, equal to the 50-day MA of 28.39, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.41 indicates Negative momentum. The RSI at 66.36 is Neutral, neither overbought nor oversold. The STOCH value of 50.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QFRD.

QFRD Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.77M0.49%
74
Outperform
$91.94M0.60%
71
Outperform
$91.52M1.00%
72
Outperform
$86.54M0.09%
74
Outperform
$85.96M0.80%
67
Neutral
$84.31M0.70%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QFRD
Pacer S&P 500 Quality FCF R&D Leaders
30.39
5.85
23.84%
ALTL
Pacer Lunt Large Cap Alternator ETF
PRMR
PeakShares RMR Prime Equity ETF
SPXE
ProShares S&P 500 Ex-Energy ETF
FCUS
Pinnacle Focused Opportunities ETF
HUSV
First Trust Horizon Managed Volatility Domestic ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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