ETF Evaluator: Pacer American Energy Infrastructure ETF () Follow This ETF

Pacer American Energy Infrastructure ETF Overview

Pacer American Energy Infrastructure ETF (USAI) is a passively managed Sector Equity Energy Limited Partnership exchange-traded fund (ETF). Pacer launched the ETF in 2017.

The investment seeks to track the performance, before fees and expenses, of the American Energy Infrastructure Index. Under normal circumstances, at least 80% of the fund’s net assets (plus any borrowings for investment purposes) will be invested in securities of infrastructure companies in the energy industry or sector. The index uses a proprietary, rules-based methodology to measure the performance of a portfolio of U.S. and Canadian exchange-listed equity securities of companies that generate a majority of their cash flow from certain qualifying energy infrastructure activities such as natural gas exploration and production. The fund is non-diversified.

About Pacer American Energy Infrastructure ETF (USAI)

There are 2 members of the management team with an average tenure of 6.39 years: Bruce Kavanaugh (2017) and Danke Wang (2022). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and American Energy Infrastructure USD index with a weighting of 100%. Pacer American Energy Infrastructure ETF has 38 securities in its portfolio. The top 10 holdings constitute 61.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Pacer American Energy Infrastructure ETF is part of the Equity global asset class and is within the Sector Equity ETF group. Pacer American Energy Infrastructure ETF has 22.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 77.8% There is 22.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Pacer American Energy Infrastructure ETF has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $132 million in total assets, which is below the $1 billion average for the Energy Limited Partnership category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

USAI Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Pacer American Energy Infrastructure ETF expense ratio is above average compared to funds in the Energy Limited Partnership category. Pacer American Energy Infrastructure ETF has an expense ratio of 0.75%, which is 2% lower than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Pacer American Energy Infrastructure ETF has a portfolio turnover rate of 22%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 21% for the Energy Limited Partnership category.

Recently, in the month of July 2026, Pacer American Energy Infrastructure ETF returned 2.9%, which earned it a grade of D, as the Energy Limited Partnership category had an average return of 4.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Pacer American Energy Infrastructure ETF has a trailing yield of 4.12%, which is below the 5.06% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Pacer American Energy Infrastructure ETF Grades

Year to date, the ETF has returned 25.2%, 0.1 percentage points better than the category, which translates into a grade of C. The fund has returned 21.7% over the past year (grade of D), 24.1% over the past three years (grade of C) and 21.4% per year over the past five years (grade of D).

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