Pacer Trendpilot Fund of Funds ETF (TRND)

Overview

The Pacer Trendpilot Fund of Funds ETF (PTFO) is a fund that seeks to track the total return performance, before fees and expenses, of the Pacer Trendpilot Fund of Funds Index. The index uses a rules-based methodology to allocate its assets among various equity asset classes based on the 200-day moving average of those asset classes.

Reputation and Reliability

Pacer ETFs is known for its rules-based, index-tracking ETFs, particularly its Trendpilot series. They have a solid reputation for transparency and adherence to their stated strategies.

Management Expertise

Pacer Financial has a team of experienced investment professionals dedicated to managing and developing innovative ETF strategies.

Goal

The investment objective of the Pacer Trendpilot Fund of Funds ETF is to track the total return performance of the Pacer Trendpilot Fund of Funds Index, which aims to provide capital appreciation while mitigating downside risk using a trend-following strategy.

Investment Approach and Strategy

Strategy: The ETF tracks the Pacer Trendpilot Fund of Funds Index. The index employs a trend-following strategy, allocating its assets based on the 200-day moving average of each asset class within the fund.

Composition The ETF invests primarily in other Pacer ETFs representing different equity asset classes. The asset allocation shifts between 100% equity, 50% equity/50% cash, or 100% cash based on the trend-following rules.

Market Share: The fund of funds ETF market share is a very small niche compared to the broader ETF market.

Total Net Assets (AUM): 106271760.18

Key Competitors

• AGFiQ US Market Rotation ETF (ROUS)
• Cambria Global Tactical ETF (GTAA)
• Adaptive ETF (ADPT)

Competitive Landscape

The competitive landscape is characterized by a variety of tactical allocation and risk management ETFs. PTFO distinguishes itself through its fund of funds approach using the Pacer Trendpilot methodology. Competitors may offer different asset allocation strategies or utilize different indicators for market timing. Advantages of PTFO includes simplicity and diversification through exposure to various equity asset classes. A disadvantage may be the expense ratio associated with a fund of funds structure.

Historical Performance: Historical performance can be found on financial websites, including Pacer's official website, and is subject to change.

Benchmark Comparison: The ETF's performance should be compared to its underlying index, the Pacer Trendpilot Fund of Funds Index, to evaluate its tracking efficiency.

Expense Ratio: 0.75

Average Trading Volume

PTFO's average trading volume indicates moderate liquidity, with recent averages around several thousand shares traded daily.

Bid-Ask Spread

The bid-ask spread for PTFO is generally low, typically a few cents, suggesting efficient trading conditions.

Market Environment Factors

Economic indicators, market volatility, and interest rate movements can influence the performance of the equity ETFs held within PTFO, impacting its overall returns.

Growth Trajectory

PTFO's growth trajectory is tied to the adoption of trend-following strategies and investor demand for downside protection. Changes to holdings are dictated by the underlying trend-following model, reacting to market conditions.

Competitive Edge

PTFO's competitive advantage lies in its rules-based, trend-following strategy within a fund of funds structure. It offers investors a simplified approach to tactical asset allocation, removing the need for individual stock or sector selection. The ETF provides diversification across various equity asset classes through its underlying Pacer ETF holdings. This structured approach aims to mitigate downside risk while participating in market upside, making it appealing to investors seeking a systematic investment solution.

Volatility

PTFO's historical volatility will depend on the volatility of its underlying equity ETF holdings and the effectiveness of the trend-following model. During periods of market turbulence, volatility may increase.

Market Risk

PTFO is subject to market risk, as the value of its underlying equity ETFs can fluctuate based on overall market conditions. Additionally, there is model risk associated with the trend-following strategy; the model may not accurately predict market trends, leading to underperformance.

Ideal Investor Profile

The ideal investor for PTFO is someone seeking capital appreciation with a focus on downside protection. This ETF is suitable for investors who are comfortable with a rules-based, tactical asset allocation strategy and want to reduce market volatility.

Market Risk

PTFO is best suited for long-term investors who understand and accept the risks and benefits of a trend-following investment approach. It can also be used by active traders seeking to tactically adjust their portfolio's equity exposure.

The Pacer Trendpilot Fund of Funds ETF (PTFO) provides a rules-based approach to tactical asset allocation, aiming to mitigate downside risk through a trend-following strategy. The fund invests in other Pacer ETFs, providing exposure to various equity asset classes. Its performance depends on the effectiveness of the trend-following model and the underlying performance of its equity holdings. PTFO is most suitable for long-term investors seeking downside protection and a systematic investment approach. It offers diversification and a potentially less volatile investment experience compared to solely equity-focused investments.

Data Sources:

• Pacer ETFs Official Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. ETF performance is subject to change and past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.