Pacer Trendpilot US Large Cap ETF (PTLC US) – Portfolio Construction Methodology

The underlying Pacer Trendpilot US Large Cap Index delivers a rules-based allocation between the S&P 500 Total Return Index and 3-Month U.S. Treasury bills using moving-average trend signals. When the S&P 500 TR closes above its 200-day simple moving average (SMA) for five consecutive business days, exposure shifts to 100% S&P 500; when it closes below the 200-day SMA for five consecutive business days, exposure shifts to 50% S&P 500/50% T-bills. A T-bill “risk-off” trigger moves exposure to 100% T-bills when the 200-day SMA itself declines versus its level five business days earlier; from that state the index returns directly to 100% equities only when the above-SMA signal is re-established. An extreme-valuation safeguard moves to 50/50 if the index closes 20% below its 200-day SMA. Signal changes take effect at the next close, with position effective the following business day.

To explore PTLC in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/PTLC_US