Pacer Trendpilot 100 ETF (PTNQ)

Overview

The Pacer Trendpilot 100 ETF (PTNQ) seeks to track the price movements of the Nasdaq-100 Index while applying a trend-following strategy. Its asset allocation shifts between equities and US Treasury bills based on the 200-day simple moving average of the Nasdaq-100 Index. When the index is above its moving average, the fund is 100% invested in equities; when below, it shifts to US Treasury bills.

Reputation and Reliability

Pacer Financial is a well-regarded ETF provider known for its rules-based and strategy-driven ETF products.

Management Expertise

Pacer Financial's management team has experience in developing and managing quantitative investment strategies.

Goal

To provide investment results that closely correspond, before fees and expenses, to the price performance of the Nasdaq-100 Trendpilot Index.

Investment Approach and Strategy

Strategy: The ETF employs a dynamic allocation strategy based on the 200-day simple moving average of the Nasdaq-100 Index.

Composition The ETF's composition varies between Nasdaq-100 stocks and US Treasury bills, depending on the trend-following signal.

Market Share: PTNQ's market share is relatively small compared to other Nasdaq-100 tracking ETFs.

Total Net Assets (AUM): 67951864.41

Key Competitors

• Invesco QQQ Trust (QQQ)
• Direxion Daily QQQ Bull 3X Shares (TQQQ)
• ProShares UltraPro QQQ (TQQQ)
• First Trust NASDAQ-100 Equal Weighted Index Fund (QQEW)

Competitive Landscape

The ETF industry for Nasdaq-100 is highly competitive with QQQ dominating. PTNQ differentiates itself through its trend-following strategy, which aims to reduce downside risk compared to passively managed Nasdaq-100 ETFs. However, its strategy may result in underperformance during strong uptrends. Other competitors include leveraged and equal-weighted funds.

Historical Performance: Past performance does not guarantee future results. Performance can be found on the Pacer ETFs website.

Benchmark Comparison: Performance can be compared to the Nasdaq-100 index to gauge its effectiveness.

Expense Ratio: 0.6

Average Trading Volume

The average trading volume is relatively moderate which may impact the ease of trading large quantities.

Bid-Ask Spread

The bid-ask spread is generally reasonable, but can widen during periods of high volatility or low trading volume.

Market Environment Factors

Economic indicators, technology sector performance, and overall market sentiment influence PTNQ's performance. Interest rate changes can impact the returns from the ETF's holdings of US Treasury bills.

Growth Trajectory

PTNQ's growth depends on investor demand for trend-following strategies and its ability to effectively manage risk during market downturns. Changes in strategy or holdings are disclosed in fund prospectuses.

Competitive Edge

PTNQ's primary competitive advantage is its trend-following strategy, which seeks to reduce downside risk during market corrections. This differentiated approach can appeal to investors seeking a more conservative exposure to the Nasdaq-100 Index. The rules-based allocation process provides transparency and eliminates subjective decision-making. The ETF offers a blend of equity participation during uptrends and capital preservation during downtrends, making it a unique offering.

Volatility

PTNQ's volatility should be lower than that of a pure Nasdaq-100 tracking ETF during market downturns due to its allocation to US Treasury bills.

Market Risk

The primary market risk is the performance of the Nasdaq-100 Index. The strategy is not guaranteed to outperform the index, and it may lag during strong uptrends if it is allocated to Treasury bills. The allocation to Treasury Bills can be considered credit and interest rate risk.

Ideal Investor Profile

The ideal investor is risk-averse, seeking participation in the Nasdaq-100's growth potential but with a focus on downside protection. These investors want some equity exposure but want to be hedged against extreme volatility.

Market Risk

PTNQ is suitable for long-term investors seeking a blend of growth and risk management, and who understand the implications of a trend-following strategy.

The Pacer Trendpilot 100 ETF (PTNQ) employs a trend-following strategy on the Nasdaq-100 Index, shifting between equities and US Treasury bills based on the 200-day simple moving average. This approach aims to reduce downside risk during market corrections, making it attractive to risk-averse investors. Its performance depends on the effectiveness of the trend-following signal, and it may underperform during strong uptrends. While its AUM and market share are smaller compared to major Nasdaq-100 ETFs like QQQ, it offers a unique value proposition for investors seeking downside protection. Its expense ratio is higher compared to more passively managed, broad-market ETFs.

Data Sources:

• Pacer ETFs Website
• SEC Filings
• Morningstar
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results. Market share is based on available data and may not be exact. AUM data is dynamic and may change.