Pacer Trendpilot International ETF (PTIN)

Overview

The Pacer Trendpilot International ETF (PTIN) is designed to participate in international equity market gains while seeking to limit losses during market downturns. It uses a trend-following strategy that switches between equities, 3-month US Treasury bills, and a 50/50 blend based on the 200-day simple moving average of the MSCI EAFE Index. Its focus is international equities.

Reputation and Reliability

Pacer ETFs is known for its rules-based, index-tracking ETFs, particularly those using the Trendpilot methodology. They have a solid reputation for transparent and consistent strategy implementation.

Management Expertise

Pacer ETFs has a dedicated team focused on developing and managing their suite of ETFs, with experience in index construction and rules-based investing.

Goal

To track the Pacer Trendpilot International Index which aims to provide capital appreciation while limiting downside risk by using a trend-following methodology.

Investment Approach and Strategy

Strategy: The ETF uses a rules-based Trendpilot strategy. It invests in the MSCI EAFE Index, 3-Month US Treasury Bills, or a 50/50 blend based on the 200-day simple moving average of the index.

Composition The ETF primarily holds international equities (represented by the MSCI EAFE Index) but also holds US Treasury bills and a blend of both, depending on market trends.

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

Total Net Assets (AUM): 132100000

Key Competitors

• VEA
• VXUS
• IEFA

Competitive Landscape

The international equity ETF market is highly competitive, with many established players like VEA, VXUS, and IEFA holding significant market share. PTIN differentiates itself with its trend-following strategy, which aims to reduce downside risk but can underperform during strong upward markets. While VEA and IEFA focus on developed markets, VXUS has exposure to both developed and emerging markets. A disadvantage for PTIN is its higher expense ratio than its competitors.

Historical Performance: Historical performance varies based on market trends and the ETF's allocation strategy. It has periods of outperformance during bear markets, and underperformance during strong bull markets.

Benchmark Comparison: The ETF's performance is typically compared to the MSCI EAFE Index, but its trend-following strategy means it will likely deviate from the index during periods of market volatility or sustained trends.

Expense Ratio: 0.6

Average Trading Volume

PTIN's average trading volume is moderate, which may result in slightly wider bid-ask spreads compared to more liquid ETFs.

Bid-Ask Spread

The bid-ask spread for PTIN is typically slightly wider than more heavily traded international ETFs, reflecting its lower trading volume.

Market Environment Factors

Global economic conditions, geopolitical events, and interest rate policies influence the performance of PTIN. Its trend-following strategy is designed to adapt to changing market environments.

Growth Trajectory

The growth trajectory of PTIN depends on investor demand for downside protection in international equities. Changes in the allocation strategy are triggered by movements of the MSCI EAFE Index relative to its 200-day moving average.

Competitive Edge

PTIN's competitive advantage lies in its Trendpilot methodology, which aims to automatically adjust the ETF's exposure to international equities based on market trends. This approach offers a degree of downside protection that traditional passively managed international equity ETFs do not provide. The rules-based strategy reduces the need for discretionary management and provides transparency to investors. However, this approach may limit potential upside during strongly bullish markets.

Volatility

PTIN's volatility can vary depending on its asset allocation. When fully invested in equities, its volatility will track the MSCI EAFE. When allocated to treasury bills, its volatility will be lower.

Market Risk

PTIN is subject to the market risk associated with international equities, including currency risk and geopolitical risk. Its trend-following strategy aims to mitigate some of this risk by reducing equity exposure during downturns, but it cannot eliminate it entirely.

Ideal Investor Profile

The ideal investor for PTIN is someone who is seeking international equity exposure but is also concerned about downside risk and market volatility.

Market Risk

PTIN may be suitable for long-term investors who are looking for a rules-based approach to manage risk in their international equity portfolio.

Pacer Trendpilot International ETF (PTIN) offers exposure to international equities using a trend-following strategy to mitigate downside risk. It switches between equities, Treasury bills, and a blend, based on the MSCI EAFE Index's 200-day moving average. While this provides downside protection, it may limit upside during strong bull markets and has a higher expense ratio than passive competitors. It is suitable for investors seeking international equity exposure with a focus on risk management.

Data Sources:

• Pacer ETFs Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investment decisions should be made based on your own due diligence and consultation with a financial advisor.