MALVERN, Pa.--(BUSINESS WIRE)--Pacer ETFs, a strategy-driven, exchange traded fund (ETF) provider, announces the launch of the Pacer Trendpilot US Bond ETF (ticker: PTBD), which will be included in the firm’s flagship fund family. Pacer’s Trendpilot Series, known for its rules-based strategy which aims to offer risk-mitigation, has seen immense growth since the first Trendpilot fund launched in 2015.
“We’ve experienced rapid growth and adoption by financial advisors and investors looking for a strategy that offers risk-mitigation tactics, especially in today's volatile market environment,” says Sean O’Hara, President of Pacer ETFs Distributors. “Our new Trendpilot Bond ETF gives investors exposure to potentially higher-yielding fixed-income assets that complement a portfolio, but with the added benefit of a risk management strategy.”
The Pacer Trendpilot US Bond ETF has a similar approach to the rest of the Trendpilot funds, implementing a passive, trend-following strategy that will direct exposure between the S&P U.S. High Yield Corporate Bond Index and the S&P U.S. Treasury Bond 7-10 Year Index based on the 100-day simple moving average (100-day SMA) of the fund’s risk ratio. The risk ratio is calculated by dividing the value of the S&P U.S. High Yield Corporate Bond Index by the value of the S&P U.S. Treasury Bond 7-10 Year Index.
When the risk ratio closes above the 100-day SMA for five consecutive business days, the fund will have 100% exposure to the S&P U.S. High Yield Corporate Bond Index. If the risk ratio closes below the 100-day SMA for five consecutive business days, the fund will switch exposure to 50% of the S&P U.S. High Yield Corporate Bond Index and 50% of the S&P U.S. Treasury Bond 7-10 Year Index. The fund will switch to 100% exposure to the S&P U.S. Treasury Bond 7-10 Year Index when the risk ratio’s 100-day SMA closes lower than its value from five business days earlier.
“At Pacer ETFs, we pride ourselves on offering innovative and diverse investment options that meet the needs of our investors, which has been a key driver of our rapid growth,” says Joe Thomson, Founder and President of Pacer Financial. “Expanding our successful Trendpilot strategy into the fixed-income market shows our dedication to our client-first mentality.”
About Pacer ETFs:
Pacer ETFs is a strategy-driven, exchange traded fund provider with 21 ETFs and over $4.96 billion in assets under management as of October 18th, 2019. Pacer ETFs is focused on addressing investors’ needs through its four fund families: the Pacer Trendpilot® Series, Pacer Cash Cows Index® Series, Pacer Custom ETF Series, and Pacer Leaders ETF Series. Pacer ETFs employs a rules-based, passive management approach to track S&P, NASDAQ, FTSE Russell, and Custom Indexes.
For more information, please visit PacerETFs.com.
Before investing you should carefully consider the Fund’s investment objectives, risks, charges, and expenses. This and other information is in the prospectus. A copy may be obtained by visiting www.paceretfs.com or calling 1-877-337-0500. Please read the prospectus carefully before investing.
An investment in the Funds is subject to investment risk, including the possible loss of principal. Pacer ETF shares may be bought and sold on an exchange through a brokerage account. Brokerage commissions and ETF expenses will reduce investment returns. There can be no assurance that an active trading market for ETF shares will be developed or maintained. The risks associated with these funds are detailed in the prospectus and could include factors such as cash redemption risk, fixed income risk, government obligations risk, high yield risk, management risk, new fund risk, passive investment risk, tracking risk, trend lag risk and other special risks of exchange traded funds.
Trendpilot®, Cash Cows Index® and Strategy Driven ETFs® are trademarks of Index Design Group, LLC, an affiliate of Pacer Advisors, Inc.
Pacer Advisors 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.
NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED