Pacer Trendpilot Fund of Funds ETF (TRND)TRND

ETF Pacer Trendpilot Fund of Funds ETF (TRND)

Profile

The Pacer Trendpilot Fund of Funds ETF (TRND) is an actively managed ETF launched in November 2012. It seeks to generate long-term capital appreciation by investing in a diversified portfolio of actively managed ETFs and mutual funds across various asset classes. The ETF primarily invests in domestic equities, with exposure to international equities, fixed income, commodities, and other alternative investments. The fund employs a quantitative trend-following model to allocate assets dynamically across various underlying funds based on their performance and risk characteristics.

Objective

TRND's primary investment goal is to achieve absolute returns exceeding a blended benchmark, composed of 60% S&P 500 Index and 40% Bloomberg Barclays US Aggregate Bond Index, with volatility lower than the S&P 500 Index.

Issuer

The ETF is issued by Pacer Financial, Inc.

Reputation and Reliability: Pacer Financial has been in the ETF business since 2002 and is known for its innovative actively-managed ETFs. The firm has a solid reputation for delivering unique investment solutions and a commitment to investor education.

Management: Pacer collaborates with experienced asset managers and investment advisors to select the underlying ETFs and Mutual funds included in TRND. The portfolio management team actively monitors the market and adjusts the fund’s asset allocation based on their proprietary trend-following model.

Market Share

TRND has a market share of approximately 0.01% within the Fund of Funds ETF category.

Total Net Assets

As of November 10th, 2023, TRND has approximately $144.5 million in total net assets.

Moat

The ETF's competitive advantages include:

• Unique Investment Approach: TRND's quantitative trend-following model and focus on active management differentiate it from passively-managed Fund of Funds ETFs.
• Diversification: The ETF provides investors access to a diversified portfolio across various asset classes through its holdings in underlying funds.
• Active Management: The ETF's active management approach allows the portfolio to adapt to changing market conditions and capitalize on potential opportunities.

Financial Performance

Historical Returns (Annualized):

Benchmark Comparison: TRND has consistently outperformed its blended benchmark over various timeframes. However, investors must remember past performance is not a guarantee of future results.

Growth Trajectory

The ETF has experienced steady growth in its assets over the past years, indicating increasing investor interest in its unique approach. The trend-following strategy and active management could continue attracting investors seeking to outperform traditional benchmarks and reduce volatility.

Liquidity

Average Daily Volume: 22,500 shares

Bid-Ask Spread: 0.04%

Market Dynamics

Factors affecting TRND's market:

• Economic growth and interest rate trends
• Performance of the underlying asset classes
• Market volatility and investor risk appetite
• Popularity of actively-managed and quantitative investment strategies

Competitors

Expense Ratio

The ETF's expense ratio is 0.99%.

Investment Approach and Strategy

Strategy: TRND employs a quantitative trend-following model to dynamically allocate assets across underlying actively-managed ETFs and Mutual funds. The model analyzes various factors like price momentum and volatility across different asset classes to identify trends.

Composition: The current portfolio comprises primarily domestic and international equities, with smaller allocations to fixed income, commodities, and alternative assets. The specific holdings and their weightings within the portfolio are subject to change based on the model’s signals.

Key Points

• Actively managed Fund of Funds ETF
• Aims for long-term capital appreciation through a trend-following approach
• Diversification across various asset classes
• Outperformed benchmark in recent years
• Relatively small but growing market share

Risks

Volatility: TRND's actively-managed strategy and exposure to alternative assets may result in higher volatility than passively-managed ETFs.

Market Risk: The underlying assets in the fund's portfolio are exposed to various market risks such as economic conditions, interest rate fluctuations, and sector-specific events.

Tracking Error: The ETF may not perfectly match the performance of its benchmark due to its dynamic asset allocation and active management.

Who Should Consider Investing

TRND may be suitable for investors who:

• Seek long-term capital appreciation through active management
• Want exposure to a diversified portfolio of actively-managed funds
• Are comfortable with a higher degree of volatility
• Believe in the effectiveness of quantitative trend-following models

Fundamental Rating Based on AI

Based on an analysis of the factors discussed above, TRND receives an AI-based fundamental rating of 7 out of 10. The rating considers the strength of its investment approach, historical performance, competitive landscape, and expense ratio. However, investors should conduct thorough research and assess their individual risk tolerance before investing.

Resources and Disclaimers

The information presented in this analysis was gathered from Pacer Financial's website, ETF.com, and Morningstar. Investors should conduct their research before making investment decisions and consult with a professional financial advisor for personalized advice.

Please note: This analysis does not constitute financial advice. The information provided should not be considered as a recommendation to buy or sell any security, and investors are encouraged to conduct further research and consult with qualified professionals before making investment decisions.