PWS Profile
The Pacer WealthShield ETF employs a systematic risk management approach designed to dynamically adjust its exposure to U.S. equity and Treasury securities. The fund tracks an index that shifts its allocation between U.S. equities, U.S. Treasury securities, or a combination of both based on prevailing market conditions and risk factors. This adaptive strategy aims to provide investors with a balanced risk profile and the potential for returns across varying market environments.
The index used by the fund incorporates a rule-based system to determine the allocation between equities and Treasuries. During periods of higher market volatility or anticipated downturns, the index may increase its allocation to U.S. Treasury securities, which are generally considered safer investments. Conversely, in more favorable market conditions, the index may shift a greater portion of its assets towards U.S. equities to capitalize on potential growth opportunities.
To align with the index's strategy, the fund invests primarily in the component securities that make up the index or in exchange-traded funds (ETFs) that aim to replicate the performance of these component securities. This may include investing in ETFs that track U.S. equities, U.S. Treasuries, or both, in proportions similar to those in the index. By closely mirroring the index’s components, the fund seeks to achieve returns that reflect the index’s performance while maintaining its risk management framework.
Investors in the Pacer WealthShield ETF benefit from a strategic investment approach that seeks to balance risk and return by adjusting exposure based on market conditions. The fund’s systematic approach provides a diversified investment strategy that aims to reduce volatility and offer more consistent performance, catering to investors looking for a dynamic and risk-managed investment solution.
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