Pacer Trendpilot International ETF (PTIN)

Overview

The Pacer Trendpilot International ETF (PTIN) employs a trend-following strategy, investing in developed and emerging market equities, and potentially transitioning to short-term treasury bills if the trend weakens, aiming to provide capital appreciation with downside risk management.

Reputation and Reliability

Pacer ETFs is a known issuer focused on rules-based, factor-driven strategies, generally regarded as reliable.

Management Expertise

Pacer ETFs has a dedicated investment team with experience in developing and managing various factor-based and trend-following ETFs.

Goal

To provide capital appreciation while seeking to limit downside risk.

Investment Approach and Strategy

Strategy: The ETF utilizes a proprietary trend-following methodology based on a 200-day moving average of the MSCI EAFE NR USD index and the MSCI Emerging Markets Index. It allocates its assets based on whether the index's price is above or below this moving average, switching between equities and US Treasury bills.

Composition The ETF holds primarily developed and emerging market equities, but it can also hold short-term U.S. Treasury bills for downside protection.

Market Share: PTIN has a relatively small market share compared to broad international equity ETFs.

Total Net Assets (AUM): 44310000

Key Competitors

• VEA
• IEFA
• SCHF
• VWO
• IEMG

Competitive Landscape

The international equity ETF market is highly competitive, with several large, established ETFs dominating market share. PTIN's trend-following strategy differentiates it, offering potential downside protection that broad market ETFs do not, but it may underperform in strong bull markets. Competitors VEA, IEFA, and SCHF are lower cost broad market international equity ETFs. Competitors VWO and IEMG are broad emerging market equity ETFs.

Historical Performance: Historical performance data requires an external data source. Performance varies depending on market trends and equity exposure.

Benchmark Comparison: The benchmark index varies based on trend signals. Performance depends on the accuracy of the trend-following model.

Expense Ratio: 0.6

Average Trading Volume

The average trading volume is relatively low, potentially leading to wider bid-ask spreads during periods of high volatility.

Bid-Ask Spread

The bid-ask spread varies depending on trading volume and market conditions, but is likely to be wider than more liquid, broad international equity ETFs.

Market Environment Factors

Global economic conditions, currency fluctuations, and geopolitical events in developed and emerging markets affect PTIN.

Growth Trajectory

Growth depends on the effectiveness of the trend-following strategy and overall investor demand for downside protection in international equities; a rising interest rate environment also could impact asset allocation.

Competitive Edge

PTIN's primary advantage is its Trendpilot strategy, which aims to reduce downside risk by moving assets to U.S. Treasury bills when market trends weaken. This unique approach provides a differentiated value proposition compared to traditional market-cap-weighted international equity ETFs. However, during sustained bull markets, the strategy may underperform as it misses out on full market gains. This tactical approach differentiates PTIN and may be attractive to risk-averse investors.

Volatility

Volatility depends on the current asset allocation. It should be lower than a fully invested international equity portfolio when the fund is allocated to US Treasury bills, but could be similar when fully invested in international equities.

Market Risk

The ETF is exposed to market risk associated with international equities, including economic, political, and currency risks, as well as the risk that the Trendpilot strategy may not perform as expected.

Ideal Investor Profile

Risk-averse investors seeking international equity exposure with downside protection, and who are comfortable with a potentially lower upside capture compared to traditional international equity ETFs.

Market Risk

Suitable for long-term investors seeking downside protection and who are willing to accept potential underperformance during strong bull markets, as well as active traders who anticipate changing trends in the international market.

The Pacer Trendpilot International ETF (PTIN) offers a unique approach to international equity investing through its trend-following strategy that aims to limit downside risk. By strategically allocating assets between international equities and U.S. Treasury bills based on market trends, PTIN seeks to provide capital appreciation while mitigating potential losses during market downturns. However, investors should recognize that the strategy may lead to underperformance in sustained bull markets. Ultimately, PTIN may be a suitable option for risk-averse investors seeking exposure to international equities with a built-in risk management mechanism.

Data Sources:

• Pacer ETFs official website
• ETF.com
• Morningstar
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute financial advice. Market conditions can change rapidly, and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.