PTNQ Profile
The Pacer Trendpilot 100 ETF is strategically designed to provide investors with targeted exposure to the NASDAQ-100 Index through a methodical, trend-following approach. Under normal circumstances, the fund commits at least 80% of its total assets, excluding any collateral from securities lending, to the component securities of the index it tracks. This allocation ensures that the majority of the fund's assets are invested in high-growth technology and consumer companies, which are key constituents of the NASDAQ-100 Index.
The ETF's investment strategy is rooted in a systematic trend-following methodology that adjusts exposure based on market conditions. The index employed by the fund directs its investments based on a comparative analysis of the NASDAQ-100s performance relative to its 200-business day simple moving average. Specifically, the fund's exposure can be adjusted among three scenarios: (i) a full 100% allocation to the NASDAQ-100 Index, (ii) a balanced allocation of 50% to the NASDAQ-100 and 50% to 3-Month U.S. Treasury bills, or (iii) a complete 100% allocation to 3-Month U.S. Treasury bills.
This dynamic allocation strategy is designed to optimize returns during bullish market phases while providing a safeguard against potential declines during bearish periods. By adjusting the funds exposure based on the trend direction of the NASDAQ-100, the ETF aims to capture gains during uptrends and minimize losses during downturns, thereby balancing growth potential with risk management.
As a non-diversified ETF, the Pacer Trendpilot 100 ETF focuses its investments based on a single index but uses a strategic approach to manage risk and maximize returns. Its innovative trend-following strategy, combined with flexible asset allocation between equities and short-term government securities, positions it as a sophisticated tool for investors seeking to navigate the volatility of the technology sector and capture performance aligned with market trends.
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