PTMC Profile
The Pacer Trendpilot US Mid Cap ETF is engineered to provide investors with strategic exposure to mid-cap U.S. equities through a methodical, trend-following investment approach. The fund maintains a commitment to invest at least 80% of its total assets, excluding collateral from securities lending, in the component securities of the index it tracks. This index is specifically designed to reflect the performance of mid-cap U.S. stocks, represented by the S&P MidCap 400 Index, using a rigorous rules-based strategy.
The ETF employs a systematic trend-following strategy to determine its asset allocation, adjusting exposure based on market trends. The index guides the fund's investment decisions with three distinct allocation scenarios: (i) 100% exposure to the S&P MidCap 400 Index, (ii) a balanced 50% allocation to the S&P MidCap 400 and 50% to 3-Month U.S. Treasury bills, or (iii) 100% allocation to 3-Month U.S. Treasury bills. These allocations are determined by comparing the S&P MidCap 400's performance to its 200-business day simple moving average, ensuring that the fund adapts to changing market conditions.
This trend-following strategy is designed to capitalize on favorable market conditions for mid-cap stocks while managing risk during periods of market downturns. By dynamically adjusting its exposure between equities and short-term government securities, the fund aims to optimize returns during uptrends and provide a buffer against losses during market declines. This approach helps investors navigate the volatility associated with mid-cap stocks while pursuing long-term growth objectives.
The Pacer Trendpilot US Mid Cap ETF offers a sophisticated investment solution for those seeking exposure to mid-cap U.S. equities with an embedded risk management framework. The funds strategy to shift allocations based on the relative performance of the S&P MidCap 400 and its moving average provides a structured method for adapting to market fluctuations, potentially enhancing returns and managing risk effectively over time.
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