The Trendpilot ETF Series

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-bills 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:
– Index Value
– Index 200 Day Simple Moving Average
 

Equity Indicator

100% S&P Developed Ex-US Large Cap Index
When the S&P Developed Ex-US Large Cap Local Currency Total Return Index closes above its 200 day simple moving average (200 Day SMA) for five consecutive business days, the exposure of the Index will be 100% to the S&P Developed Ex-US Large Cap Index (USD).¹ From the equity position, the Index will change to the 50/50 position or the T-Bill position depending on the the 50/50 Indicator and the T-Bill Indicator.

50/50 Indicator

50% S&P Developed Ex-US Large Cap Index, 50% 3-Month US T-Bills
When the S&P Developed Ex-US Large Cap Local Currency Total Return Index closes below its 200 Day SMA for five consecutive business days, the exposure of the Index will be 50% to the S&P Developed Ex-US Large Cap Index (USD) and 50% to 3-Month US Treasury bills. ¹From the 50/50 position, the Index will return to the equity position or change to the T-Bill position depending on the Equity Indicator or T-Bill Indicator.

T-Bill Indicator

100% 3-Month US T-Bills
When the S&P Developed Ex-US Large Cap Local Currency Total Return Index's 200 Day SMA closes lower than its value from five business days earlier, the exposure of the Index will be 100% to 3-Month US Treasury bills. ¹From the T-Bill position, the Index will change to the equity position when the Equity Indicator is triggered. The Index will not return to its 50/50 position unless the Equity Indicator is first triggered.

This graph illustrates the Trendpilot methodology based on hypothetical movements in a benchmark index and its 200 business day simple moving average. This does not demonstrate historical data and is not an indication of how any Index or Trendpilot methodology will perform in the future. If the conditions mentioned in the graph are not satisfied, the trend of the benchmark index will be the same as the trend of the benchmark index on the immediately preceding business day. ⁽¹⁾ Any trend change will become effective at the close of business on the first business day after the indicator for the change is triggered. The Index will be in a new position effective on the second business day.