Trendpilot Strategy
- Participate in the market when it is trending up.
- Pare back market exposure during short-term market down trends.
- Prevent extended declines by moving to T-bonds during long-term market down trends.
- Watch to learn more about how Pacer trend following ETFs work.
Strategy Overview
An objective, rules-based trend following strategy that changes exposure based on 3 indicators.
Legend:
– Risk Ratio (S&P U.S. High Yield Corporate Bond Total Return Index ÷ S&P U.S. Treasury Bond 7-10 Year Total Return Index)
– Risk Ratio 100 Day Simple Moving Average
100% S&P U.S. High Yield Corporate Bond Index
High Yield Indicator
When the Risk Ratio closes above its 100 day simple moving average (100 Day SMA) for five consecutive business days, the exposure of the Index will be 100% to the S&P U.S. High Yield Corporate Bond Index.1 From the High Yield position, the Index will change to the 50/50 position or the T-Bond position depending on the 50/50 Indicator and the T-Bond Indicator.
50% S&P U.S. High Yield Corporate Bond Index, 50% S&P U.S. Treasury Bond 7-10 Year Index
50/50 Indicator
When the Risk Ratio closes below its 100 Day SMA for five consecutive business days, the exposure of the Index will be 50% to the S&P U.S. High Yield Corporate Bond Index and 50% to the S&P U.S. Treasury Bond 7-10 Year Index.1 From the 50/50 position, the Index will return to the High Yield position or change to the T-Bond position depending on if those indicators are triggered.
100% S&P U.S. Treasury Bond 7-10 Year Index
T-Bond Indicator:
When the Risk Ratio’s 100 Day SMA closes lower than its value from five business days earlier, the exposure of the Index will be 100% to the S&P U.S. Treasury Bond 7-10 Year Index.1 From this position, the Index will change to the S&P U.S. High Yield Corporate Bond Index position when the High Yield Indicator is triggered. The Index will not return to its 50/50 position unless the High Yield Indicator is first triggered.
The graphs illustrate the Pacer Trendpilot® methodology based on hypothetical movements of its risk ratio and its 100 day simple moving average. This does not demonstrate historical data, and is not an indication of how any Index or Pacer Trendpilot® methodology will perform in the future. If the conditions mentioned in the graph are not satisfied, the trend of the risk ratio will be the same as the trend of the risk ratio on the immediately preceding business day.
(1)Any exposure change will become effective by the 6th business day..
S&P U.S. High Yield Corporate Bond Index Characteristics: |
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S&P U.S. Treasury Bond 7-10 Year Index Characteristics: |
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Current Exposure
Tracking: 100% T-Bonds
Track Trendpilot's Current Position
View All Holdings
Performance (%)
as of 12/31/2019
| Since Fund Inception (10/22/19) | YTD | 1 Month | 3 Month | 1 Year | ||||
|---|---|---|---|---|---|---|---|---|
| Pacer Trendpilot US Bond ETF NAV | 2.07 | N/A | 1.85 | N/A | N/A | |||
| Pacer Trendpilot US Bond ETF Market Price | 2.80 | N/A | 2.16 | N/A | N/A | |||
| Pacer Trendpilot US Bond Index | 1.89 | N/A | 1.85 | N/A | N/A | |||
| S&P U.S. High Yield Corporate Bond Index | 2.27 | 14.47 | 1.85 | 2.57 | 14.47 | |||
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This is a new Fund and therefore has limited performance to report. Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate, so shares may be worth more or less when redeemed or sold. Current performance may be lower or higher than the performance quoted. Visit www.paceretfs.com for the most recent month-end performance. Index returns are for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. You cannot invest directly in an index. |
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Distributions
| Ex Date | Total Distributions | Ordinary Income* | Short Term Capital Gains | Long Term Capital Gains | Return of Capital | |||
|---|---|---|---|---|---|---|---|---|
| 3/23/2020 | $0.12299677 | $0.12299677 | $0 | $0 | $0 | |||
| 12/24/2019 | $0.15903674 | $0.15903674 | $0 | $0 | $0 | |||
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Past distributions are not indicative of future distributions. |
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Index Characteristics
as of 12/31/2019
| Pacer Trendpilot US Bond Index | S&P U.S. High Yield Corporate Bond Index | S&P U.S. Treasury Bond 7-10 Year Index | |
|---|---|---|---|
| Weighted Average Coupon (%) | 6.10 | 6.10 | 2.64 |
| Average Years to Maturity | 6.77 | 6.77 | 8.48 |
| Modified Duration | 4.73 | 4.73 | 7.55 |
| Yield to Maturity (%) | 5.74 | 5.74 | 1.88 |
Top 10 Holdings (%)
as of 9/30/19
| Ticker | Holding | Weight |
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View All Holdings
Sector Breakdown (%)
as of 12/31/2019
| Sector | Weight |
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| - | - |
Weighted average coupon is the par-weighted average coupon rate paid by all bonds in the index.
Average years to maturity is the average number of years to describe maturities in a portfolio of debt securities, including corporate debt and municipal bonds.
Modified Duration is a measure of how sensitive the price of a bond is to interest rate change.
Yield to Maturity is the total return anticipated on a bond if the bond is held until it matures.
30-Day SEC yield is a standardized yield calculation for bond funds specified by the U.S. Securities and Exchange Commission (SEC).
Pacer Advisors, Inc. is the fund advisor. Vident Investment Advisory is the fund sub-adviser. Vident Investment Advisory, LLC is registered as an investment advisor with the SEC and only conducts business in states where it is properly notice filed or is excluded from registration requirements.
When investing in high yield, high risk securities, the Fund will generally hold a representative sample of the securities in the Index whose risk, return and other characteristics closely resemble, in the judgment of the Sub-Adviser, Vident Investment Advisory, those of the Index as a whole. While intended to allow the Fund to closely track the Index, use of this approach may cause the Fund’s performance to deviate from that of the Index.
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Institutional Presentation: Pacer Trendpilot US Bond Index
as of 12/31/19
Category: Trendpilot Series, PTBD
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Pacer ETFs Performance
as of 2/29/20
Category: Trendpilot Series, PTLC, PTMC, PTNQ, PTEU, PTIN, TRND, PTBD, Cash Cows Series, GCOW, COWZ, CALF, ICOW, ECOW, BUL, HERD, Leaders Series, PEXL, Pacer Custom Series, PWS, VETS, SRVR, INDS, RTL, SZNE, USAI
Download -
Customizing Fixed Income: Trendspotting with the 100-Day SMA
Category: Trendpilot Series, PTBD
Educational Videos
Duration: 4:58
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Trendpilot Update March 2020 Webinar
Category: Trendpilot Series, PTLC, PTMC, PTNQ, PTEU, PTIN, PTBD
Institutional Presentation Videos
Duration: 39:17