Pacer Trendpilot International ETF (PTIN)

Overview

The Pacer Trendpilot International ETF (ticker: PTII) is an actively managed ETF that seeks to provide capital appreciation by investing in international equity markets. Its strategy is designed to capture upward trends while mitigating downside risk through a proprietary trend-following methodology. The ETF focuses on developed and emerging market equities, aiming for diversification across global economies.

Reputation and Reliability

Pacer Financial is a reputable financial services firm known for its innovative ETF strategies, particularly its Trendpilot series. They have a growing presence in the ETF market, focusing on providing unique investment solutions.

Management Expertise

The ETF is managed by Pacer Financial, with a team experienced in quantitative analysis and trend-following strategies. Their expertise lies in identifying and executing on market trends across different asset classes and geographies.

Goal

The primary investment goal of the Pacer Trendpilot International ETF is to achieve long-term capital appreciation by investing in a diversified portfolio of international equities, guided by a trend-following methodology.

Investment Approach and Strategy

Strategy: The ETF employs an active management strategy utilizing the Pacer Trendpilot strategy. This strategy aims to identify and invest in international equities that are exhibiting upward price trends and to reduce exposure or move to cash equivalents when downward trends are detected, thereby aiming to mitigate losses during market downturns.

Composition The ETF invests primarily in international equities, including stocks of companies located in developed and emerging markets. The specific holdings will vary based on the Pacer Trendpilot methodology's real-time assessment of market trends.

Market Share: Market share data for niche actively managed ETFs like PTII can be difficult to ascertain precisely and is often fragmented. However, it operates within the broader international equity ETF space.

Total Net Assets (AUM): 160556000

Key Competitors

• iShares Core MSCI EAFE ETF (IEFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares MSCI Emerging Markets ETF (EEM)

Competitive Landscape

The international equity ETF landscape is highly competitive, dominated by large, passive index-tracking ETFs from providers like iShares and Vanguard. PTII's active, trend-following approach differentiates it from many passive competitors. Its advantage lies in its potential to navigate market volatility, but this also comes with higher management fees and the risk that the active strategy may underperform passive benchmarks. Passive ETFs offer lower costs and broad market exposure, making them popular for core holdings.

Historical Performance: Historical performance data for PTII needs to be accessed from financial data providers. The trend-following nature means performance can be cyclical, with periods of outperformance during trending markets and potentially underperformance during choppy or highly volatile periods.

Benchmark Comparison: PTII's performance is typically compared against broad international equity benchmarks such as the MSCI EAFE Index or a blend of developed and emerging market indices. Its active strategy aims to outperform or provide downside protection relative to these benchmarks.

Expense Ratio: 0.53

Average Trading Volume

The ETF's average trading volume is typically moderate, suggesting reasonable liquidity for most retail investors, though institutional traders might find it less liquid than larger, more established ETFs.

Bid-Ask Spread

The bid-ask spread for PTII is generally competitive for an actively managed ETF, reflecting its moderate trading volume and the efficiency of the ETF market structure.

Market Environment Factors

PTII is influenced by global economic growth, geopolitical events, currency fluctuations, and monetary policy decisions in major economies. Emerging market performance and developed market stability are key drivers. The current market environment, characterized by inflation concerns and potential interest rate hikes, will significantly impact the performance of its underlying international equities and its trend-following strategy.

Growth Trajectory

The growth trajectory of PTII is dependent on its ability to consistently execute its trend-following strategy and attract assets. Changes in strategy would be driven by Pacer Financial's ongoing quantitative analysis and market outlook, with a focus on adapting to evolving market conditions and maintaining its trend identification capabilities.

Competitive Edge

PTII's primary competitive edge is its proprietary Pacer Trendpilot methodology, an active, quantitative approach designed to capture upward trends and mitigate downside risk in international markets. This systematic strategy offers a distinct alternative to passive index-tracking ETFs. Its focus on international equities also provides diversification benefits. The active management allows for tactical adjustments based on market signals, potentially offering superior risk-adjusted returns during volatile periods.

Volatility

PTII's historical volatility will reflect the inherent volatility of international equity markets, particularly emerging markets, and the impact of its trend-following strategy. Its objective is to reduce volatility during downturns compared to a simple index tracker.

Market Risk

The ETF is subject to market risk associated with global equity markets, including economic downturns, political instability, currency fluctuations, and changes in interest rates. Specific risks include currency translation risk and the potential for the trend-following strategy to generate false signals or miss market reversals.

Ideal Investor Profile

The ideal investor for PTII is one who seeks diversified exposure to international equities with an active, risk-managed approach. Investors comfortable with quantitative strategies and trend-following methodologies, and who are looking for potential downside protection, would find this ETF suitable.

Market Risk

PTII is best suited for long-term investors who understand and are comfortable with active management and trend-following strategies. It can also appeal to more tactical investors seeking to navigate global market trends and volatility.

The Pacer Trendpilot International ETF (PTII) is an actively managed fund focused on international equities, employing a proprietary trend-following strategy. Its aim is to achieve capital appreciation while mitigating downside risk. While facing competition from larger passive ETFs, PTII offers a differentiated approach for investors seeking systematic global market participation and potential risk management. Its expense ratio is moderate for an active ETF, and its liquidity is generally sufficient for most investors.

Data Sources:

• Pacer Financial Official Website
• Financial Data Provider APIs (e.g., Morningstar, Bloomberg)

Disclaimers:

This information is for educational purposes only and does not constitute investment advice. ETF performance can fluctuate, and past performance is not indicative of future results. Investors should conduct their own research and consult with a financial advisor before making investment decisions.