Pacer ETFs have gathered $2.38 billion in assets under management as they celebrate their third birthday, attracting growing investment interest from the rules-based, strategy-driven index ETFs focused on following market trends.
“When we started Pacer ETFs, we looked to provide investors with tools they could use to build well-diversified portfolios. Only three short years later, we now have more than $2 billion in assets under management,” Joe Thomson, Chairman and President of Pacer Advisors, advisor of Pacer ETFs, said in a note.
Pacer Financial Inc. first started off in the ETF arena with a suite of so-called Pacer Trendpilot ETFs, including the Pacer Trendpilot US Large Cap ETF (BATS: PTLC) and Pacer Trendpilot US Mid Cap ETF (BATS: PTMC), which have gathered $1.07 billion and $553.9 million in assets under management, respectively.
A Trend Following ETF Indexing Methodology
The Pacer ETFs implement a type of trend following strategy that automatically adjusts exposures according to current market conditions. PTLC takes a 100% position in the S&P 500 Index when the benchmark is trading above its 200-day simple moving average for five consecutive days, moves to a 50% position to the large-cap index and 50% 3-month U.S. T-bills when the benchmark falls below its 200-day for five consecutive days, and takes on 100% 3-month US T-Bills if the benchmark closes lower than its value from five business days earlier. PTMC follows the same move between S&P MidCap 400 Index and US T-Bills.
“Our products have proven attractive because they provide value to the investor in an array of market conditions,” Sean O’Hara, President of Pacer ETFs Distributors, said. “All of our ETFs are built with a specific investor need at heart. For example, our Trendpilot Series is focused on downside risk management for more cautious investors.”
Pacer also recently expanded upon its custom series line up with the recently launched Pacer Military Times Best Employers ETF (VETS), which invests in companies with the best hiring records for veterans.
Additionally, the fund provider has rolled out a new suite of ETFs that focus on the industrial, data infrastructure and retail real estate sub-sectors, including the Pacer Benchmark Industrial Real Estate SCTR ETF (NYSEArca: INDS), Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF (NYSEArca: SRVR) and Pacer Benchmark Retail Real Estate SCTR ETF (NYSEArca: RTL).
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