MALVERN, PA — Pacer ETFs has announced a dividend increase for its Pacer American Energy Independence ETF (NYSE Arca: USAI), with the monthly distribution rising from $0.12 to $0.16, effective January 2025. This adjustment underscores the fund’s robust performance and strategic focus on U.S. energy infrastructure.
USAI employs a rules-based approach, offering investors exposure to midstream energy companies in the U.S. and Canada that process, transport, store, and distribute domestic energy. This focus on midstream operations, which rely on contract-based business models, is designed to provide steady cash flow while mitigating oil price volatility often associated with upstream and downstream operations.
The demand for reliable energy infrastructure continues to increase, driven in part by AI-enabled data centers that consume unprecedented amounts of power. USAI positions itself to capitalize on this growing energy demand while offering a buffer against broader energy market disruptions.
The fund’s strategy has proven successful, with USAI delivering an impressive return of over 43% in 2024. This performance significantly surpassed the energy sector within the S&P 500, which recorded a modest 5.72% return for the year.
By focusing on midstream energy infrastructure, USAI provides investors not only with growth potential but also with consistent income, reinforcing its value proposition within today’s evolving energy landscape.
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