Pacer Trendpilot Fund of Funds ETF (TRND)

Overview

The Pacer Trendpilot Fund of Funds ETF (TPFO) seeks to provide capital appreciation while aiming to limit downside risk by investing in a portfolio of other ETFs. The fund employs a trend-following strategy, allocating its assets among equities, US Treasury bonds, and cash equivalents based on the 200-day simple moving average of the S&P 500 Index.

Reputation and Reliability

Pacer ETFs is known for its rules-based, index-tracking ETFs. They have a growing reputation for innovation in the ETF space, particularly with their Trendpilot series.

Management Expertise

Pacer ETFs has a dedicated team of investment professionals experienced in developing and managing rules-based ETF strategies.

Goal

To provide capital appreciation while seeking to limit downside risk.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index directly but invests in other ETFs, shifting its asset allocation based on the Trendpilot methodology, which uses the 200-day simple moving average of the S&P 500 Index as an indicator.

Composition The ETF's composition primarily includes equity ETFs, US Treasury bond ETFs, and cash equivalents, with allocations varying based on the prevailing market trend.

Market Share: TPFO has a relatively small market share compared to broader index ETFs but is a growing player in the fund of funds and risk-managed ETF space.

Total Net Assets (AUM): 155700000

Key Competitors

• NOBL
• IVV
• AGG

Competitive Landscape

The ETF market is highly competitive. TPFO distinguishes itself with its Trendpilot methodology, offering a unique risk-management approach. Advantages include potential downside protection; disadvantages include potential underperformance during strong bull markets and the additional layer of fees associated with a fund of funds.

Historical Performance: Historical performance data is essential to assess TPFO, but it depends on market conditions, and recent data is required. Please see any financial analysis websites for relevant data.

Benchmark Comparison: The ETF's benchmark would be a mix of the S&P 500 (for equity exposure) and a bond index like the Bloomberg Barclays US Aggregate Bond Index, adjusted for the Trendpilot allocation.

Expense Ratio: 0.75

Average Trading Volume

The average trading volume of TPFO is moderate and should be checked on financial data sites.

Bid-Ask Spread

The bid-ask spread is generally tight but can widen during periods of market volatility.

Market Environment Factors

Economic growth, interest rate movements, and overall market sentiment significantly impact TPFO. The Trendpilot strategy is designed to respond to these factors.

Growth Trajectory

The growth trajectory of TPFO depends on its ability to attract investors seeking downside protection and its effectiveness in managing risk across different market cycles. Future changes to holdings would reflect changes in the Trendpilot algorithm output.

Competitive Edge

TPFO's competitive edge lies in its Trendpilot methodology, offering a rules-based approach to risk management. The fund's ability to shift allocations between equities, bonds, and cash based on the S&P 500's 200-day moving average provides a distinct advantage. This strategy may appeal to investors seeking to mitigate downside risk while still participating in potential market gains. TPFO offers transparency in its rules-based approach.

Volatility

TPFO's volatility should be lower than the S&P 500 during periods of market decline due to its allocation to bonds and cash.

Market Risk

TPFO is subject to market risk, particularly equity market risk when allocated to equities. There is also the risk associated with holding US Treasury bonds such as interest rate risk.

Ideal Investor Profile

The ideal investor for TPFO is one seeking capital appreciation with a focus on downside risk management. This includes investors nearing retirement, those with a lower risk tolerance, or those looking to protect profits during uncertain market conditions.

Market Risk

TPFO is suitable for long-term investors seeking a risk-managed approach and those who value a rules-based strategy. It may not be suitable for highly active traders or those seeking to outperform the market significantly during bull market runs.

Pacer Trendpilot Fund of Funds ETF (TPFO) offers a unique approach to investing by allocating assets based on the S&P 500's 200-day moving average, aiming for capital appreciation while managing downside risk. Its allocation to equities, bonds, and cash varies with market trends, providing a flexible investment strategy for risk-averse investors. TPFO's strength is its rules-based approach, but it may underperform in strongly bullish markets. The expense ratio is higher than some passively managed ETFs, so it's crucial to consider this cost.

Data Sources:

• Pacer ETFs Website
• ETF Database
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered financial advice. Investors should conduct their own research and consult with a financial advisor before making any investment decisions. Market share data is approximate and may vary based on the source and date.