PSFF Profile
The Pacer Swan SOS Fund of Funds ETF is an actively managed exchange-traded fund designed to offer investors exposure to U.S. equity securities while implementing strategies to mitigate downside risk. The fund primarily achieves its investment objective by investing in a selection of other ETFs managed by the Adviser, which focus on U.S. equities. These underlying ETFs are selected for their potential to provide growth while employing various risk management techniques.
The underlying ETFs within the fund may allocate their assets to cash or short-term U.S. Treasury securities as a conservative measure to preserve capital and enhance liquidity. Additionally, they might utilize options on equity securities, including other ETFs, to hedge against potential declines in equity markets. This approach aims to protect the fund's value during periods of market volatility while still allowing for participation in equity market gains.
In addition to investing in other ETFs, the Pacer Swan SOS Fund of Funds ETF may directly invest in individual equity securities, options on equity securities or indices, as well as cash and cash equivalents. This flexibility enables the fund to adjust its investment strategy dynamically, responding to market conditions and optimizing its risk-return profile. By incorporating a variety of investment vehicles, the fund seeks to balance growth opportunities with protective measures to manage risk.
As a non-diversified fund, the Pacer Swan SOS Fund of Funds ETF's investment strategy involves a concentrated approach in selecting and managing its underlying ETFs. This concentrated focus on U.S. equity securities and hedging techniques can lead to enhanced performance during favorable market conditions but may also involve higher risks if not managed effectively. Investors considering this fund should be aware of its strategy to limit downside risk while aiming for growth, and the potential impact of market fluctuations on its performance.
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