PTLC Profile
The Pacer Trendpilot US Large Cap ETF is designed to provide investors with strategic exposure to large-cap U.S. equities through a disciplined, trend-following investment strategy. The fund adheres to a structured approach where it invests at least 80% of its total assets, excluding collateral from securities lending, in the component securities of its underlying index. This index is meticulously constructed to capture the performance of large-cap U.S. stocks, specifically the S&P 500 Index, using a systematic methodology.
The ETF's investment strategy employs a rules-based, trend-following approach to manage exposure based on market conditions. The index directs the fund's allocation between three potential scenarios: (i) 100% exposure to the S&P 500 Index, (ii) a balanced allocation of 50% to the S&P 500 and 50% to 3-Month U.S. Treasury bills, or (iii) 100% to 3-Month U.S. Treasury bills. These allocations are determined by comparing the S&P 500's performance to its 200-business day simple moving average, providing a dynamic method for adjusting investment exposure.
The trend-following strategy implemented by the ETF is designed to capitalize on favorable market conditions while managing risk during periods of market volatility. By shifting allocations between equities and short-term government securities, the fund aims to enhance returns during uptrends and protect capital during downturns. This systematic approach seeks to balance growth potential with risk mitigation, adapting to changing market dynamics.
As a result, the Pacer Trendpilot US Large Cap ETF offers a sophisticated tool for investors looking to gain exposure to large-cap U.S. stocks with built-in risk management features. The funds approach to dynamically adjusting its exposure based on the relative performance of the S&P 500 and its moving average provides a structured way to navigate market fluctuations and pursue long-term investment goals.
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