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 500 Index
When the S&P 500 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 500 Index.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 500 Index, 50% 3-Month US T-Bills
When the S&P 500 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 500 Index 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 500 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 market open on the second business day after the indicator for the change is triggered.
Large Cap Characteristics: |
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About the S&P 500® Index: |
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The S&P 500® is a popular gauge of large-cap U.S. equities and includes 500 leading companies, capturing approximately 80% coverage of available market capitalization.
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T-Bill (Treasury Bill) Characteristics: |
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Current Exposure
Tracking: 100% 3-Month US T-Bills
Track Trendpilot’s Current Position
Performance (%)
as of 9/30/2018
| Since Fund Inception (6/11/15) | YTD | 1 Year | 3 Year | 5 Year | ||||
|---|---|---|---|---|---|---|---|---|
| Pacer Trendpilot US Large Cap ETF NAV | 8.00 | 10.09 | 17.18 | 10.92 | N/A | |||
| Pacer Trendpilot US Large Cap ETF Market Price | 8.03 | 9.95 | 17.20 | 10.96 | N/A | |||
| Pacer Trendpilot US Large Cap Index | 8.66 | 10.57 | 17.89 | 11.61 | N/A | |||
| S&P 500 Index | 12.58 | 10.56 | 17.91 | 17.31 | 13.95 | |||
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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. The 3-Month T-Bill rate as of 9/30/18 is 2.1964%. |
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Distributions
| Ex Date | Total Distribution | Ordinary Income* | Short Term Capital Gains | Long Term Capital Gains | Return of Capital | |||
|---|---|---|---|---|---|---|---|---|
| 12/27/2017 | $0.27737 | $0.27737 | $0 | $0 | $0 | |||
| 12/28/2016 | $0.25823478 | $0.25823478 | $0 | $0 | $0 | |||
| 12/29/2015 | $0.058882 | $0.058882 | $0 | $0 | $0 | |||
| 9/22/2015 | $0.03904 | $0.03904 | $0 | $0 | $0 | |||
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Past distributions are not indicative of future distributions. |
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Index Characteristics
as of 9/30/2018
| Pacer Trendpilot US Large Cap Index | S&P 500 Index | 3-Month US Treasury Bill Index | |
|---|---|---|---|
| Weighted Average Market Cap ($mil) | 247,644.59 | 247,644.59 | N/A |
| Dividend Yield (%) | 1.78 | 1.78 | N/A |
| P/E Ratio | 21.52 | 21.52 | N/A |
| Treasury Yield (%) | N/A | N/A | 2.1964 |
Top 10 Holdings (%)
as of 6/30/17
| Ticker | Holding | Weight |
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View All Holdings
Sector Breakdown (%)
as of 9/30/2018
| Weight | |
|---|---|
| Information Technology | 20.99 |
| Health Care | 15.05 |
| Financials | 13.31 |
| Consumer Discretionary | 10.30 |
| Communication Services | 10.03 |
| Industrials | 9.70 |
| Consumer Staples | 6.71 |
| Energy | 6.00 |
| Utilities | 2.83 |
| Real Estate | 2.65 |
| Materials | 2.43 |
Weighted average market cap is the sum of each company's weight multiplied by its market cap.
Dividend yield is calculated using the gross dividend of a security (i.e., before any applicable withholding tax). Special cash dividends, unless they are paid for three consecutive years, and capital repayments are excluded from the dividend yield calculation.
Price to earning ratio (P/E ratio) is a fundamental measure used to determine if an investment is valued appropriately. Each holding’s P/E is the latest closing price divided by the latest fiscal year’s earnings per share. Negative P/E ratios are excluded from this calculation.
Treasury yield is the interest rate on a given bond issued by the United States government.
The S&P 500® Index is a popular gauge of large-cap U.S. equities and includes 500 leading companies, capturing approximately 80% coverage of available market capitalization.
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Pacer Trendpilot US Large Cap ETF Factsheet
as of 9/30/18
Category: Trendpilot Series, PTLC
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Pacer ETFs Performance
as of 10/31/18
Category: PTLC, PTMC, PTNQ, PTEU, GCOW, COWZ, CALF, ICOW, PWS, VETS, SRVR, INDS, RTL, SZNE, PEXL
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Up, Up and Now Which Way?
March 2018
Category: PTLC, PTMC, PTNQ, PTEU
After two years of steady returns since the last correction, investors were wondering if the market would ever see one again.
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Why the 200-day Simple Moving Average?
November 2017
Category: PTLC, PTMC, PTNQ, PTEU
Investors have long used moving averages to determine trends in the market.
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Feeling Emotional? You're Not Alone.
2017
Category: PTLC, PTMC, PTNQ, PTEU
To be an informed investor, it’s important to keep up with world news and understand how current events can affect the market and your investments.
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Cooling His Temper and Headed for Success?
November 2016
Category: PTLC, PTMC
2016 has definitely been a year marked with uncertainty. Post-election, the uncertainty has now shifted from who will be president to what will President-elect Trump do.
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