When the index is in equity mode, it will select five sectors with the best performance updated quarterly and based on the total return for the six month period ending on the selection date. The pool of sectors include all 10 S&P 500 sectors, along with S&P Biotechnology Select Industry Total Return Index and Dow Jones Internet Composite Index. The five sector picks are equally weighted. If the value of any of the equity sectors selected is below the component’s 7-month exponential moving average, the 20% allocation will instead be allocated to 3-month U.S.
If the index is in fixed-income mode, the index will be 100% allocated to the S&P U.S. Treasury Bond 20+ Year Total Return Index. However, if the value of the 20+ Year Index is below its 7-month exponential moving average, the index will instead be 100% allocated to 3-month U.S. Treasury bills.
Source: Pacer ETFs
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