Pacer ETFs enhances flagship Trendpilot Series with Extreme Valuation Trigger addition
Index Design Group (IDG), the index provider for Pacer ETFs flagship fund family The Pacer Trendpilot Series, has added an “Extreme Valuation Trigger” enhancement to the strategy.
The Extreme Valuation Trigger is a methodology improvement that applies to all Pacer Trendpilot ETFs except the Pacer Trendpilot US Bond ETF (PTBD). When the respective index of a Trendpilot ETF is trading at or more than 20 per cent above or 20 per cent below its 200-day simple moving average (SMA), the ETF will rotate into a 50/50 exposure between its equity index and 3-month US Treasury Bills.
The Pacer Advisors team, the investment adviser for the funds, has studied this addition to the rules-based methodology and believe it to be a natural evolution of the fund families’ risk mitigation strategy, especially given the extreme volatility global markets have experienced this year.