PAMC vs VONV

PAMCFPacer Lunt MidCap Multi-Factor Alternator ETF

VONVAVanguard Russell 1000 Value ETF

In short

PAMC Most multi-factor funds blend momentum, quality, value and low volatility into one smoothie. This one alternates instead, rotating among those factors inside the S&P MidCap 400. Factor timing, not factor averaging.

VONV The plain-vanilla value trade, done cheap: about 900 large US value stocks, full replication of the Russell 1000 Value Index, 0.06% a year. No factor cocktail, no premium price tag, and one of the strongest implementations in its factor peer group.

Stated mandate

PAMC The fund seeks long-term capital appreciation by rotating among momentum, quality, value and volatility factors within S&P MidCap 400 companies.

VONV The fund seeks to track the Russell 1000 Value Index, representing large-capitalization value stocks in the United States. It uses passive indexing and full replication to remain closely aligned with that benchmark.

Why people hold it

• PAMC The alternator twist: rather than averaging four factors together, it rotates among momentum, quality, value and low volatility. One flavor at a time, by design.
• It hunts in mid-caps. The pond is S&P MidCap 400 companies, roughly 150 names held, while most multi-factor rivals crowd into large-cap value and growth.
• Rules run it, not a hunch. It follows the Lunt Capital U.S. MidCap Multi-Factor Rotation Index, has been live since 2020, and distributes quarterly.

• VONV 0.06% a year, a fraction of the typical fee among factor ETFs. On a rules-based value index there is little room for cleverness, so cost does most of the work.vanguard.com
• Full replication, not sampling: it owns the index's roughly 900 names and has stayed tightly aligned with the Russell 1000 Value benchmark since launching in 2010.
• Same Russell benchmark as pricier rivals for less: the Goldman MarketBeta version (GVUS) charges 0.12% to track the identical value index.
• A multi-billion-dollar fund that trades actively, among the easiest in its group to get in and out of, and it distributes quarterly.

Worth knowing

• PAMC The rotation costs 0.60% a year, close to double the typical multi-factor fund and ten times a plain-vanilla peer such as VONV at 0.06%.
• Rotation cuts both ways. When factor leadership flips fast, the switch can land late, and holding one factor means sitting out whichever one is running.
• Thinly traded with a modest asset base, so bid-ask spreads tend to run wider than on the household names of the factor aisle.

• VONV One screen, one style. Value only, with no quality or momentum overlay, so the ride follows the value side of the market wherever it goes.vanguard.com
• This is the entire value bucket, not a best-ideas portfolio. About 900 holdings means results hug the large-cap value category rather than stray from it.
• Cheaper exists nearby: Vanguard's VYM charges 0.04%, but it screens for dividend yield, a different portfolio than a Russell value index.

Full PAMC profile⁠

Full VONV profile⁠