PTEU Profile
The Pacer Trendpilot European Index ETF is an actively managed exchange-traded fund (ETF) designed to provide systematic exposure to European equities while employing a rules-based trend-following strategy. The fund primarily invests at least 80% of its total assets in securities that are components of the FTSE Eurozone Index or in investments that have similar economic characteristics. This approach allows the ETF to track and capitalize on the performance of large and mid-cap companies within the Eurozone.
The index underlying the ETF utilizes a structured methodology to dynamically allocate exposure based on market trends. The strategy involves a systematic assessment of market conditions to determine the optimal allocation between equities and short-term government securities. The ETF can allocate 100% of its assets to the FTSE Eurozone Index, or split its investments equally between the FTSE Eurozone Index and 3-Month U.S. Treasury bills, or shift entirely to 3-Month U.S. Treasury bills based on prevailing market trends.
The fund's trend-following strategy is designed to adjust its exposure based on market momentum, aiming to enhance returns during bullish phases and reduce risk during bearish periods. By using a tactical approach, the ETF seeks to provide investors with exposure to European equities while managing downside risk through strategic allocation to U.S. Treasury bills during less favorable market conditions.
The fund’s active management and trend-based approach differentiate it from traditional index funds by incorporating a dynamic allocation process. This strategy not only aims to capture the performance of the Eurozone equity markets but also provides a mechanism to potentially mitigate losses during periods of market volatility. As a result, the fund offers a sophisticated investment tool for those looking to balance exposure to European equities with risk management features.
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