Pacer Trendpilot US Mid Cap ETF (PTMC US) - Portfolio Construction Methodology

Core Insights - The Pacer Trendpilot US Mid Cap ETF (PTMC) utilizes a rules-based trend-following methodology to manage its portfolio allocation among S&P MidCap 400 exposure and U.S. T-bills [1] Group 1: Portfolio Construction Methodology - The underlying index allocates to 100% S&P MidCap 400, a 50% S&P MidCap 400/50% 3-Month U.S. T-bill mix, or 100% 3-Month U.S. T-bills based on market conditions [1] - Exposure shifts to 100% equity when the S&P MidCap 400 Total Return Index closes above its 200-business-day simple moving average for five consecutive business days [1] - If the index closes below the 200-day average for five days, the allocation changes to a 50/50 mix [1] - An "extreme valuation" trigger occurs when the index closes 20% below its 200-day average, prompting a shift to a 50/50 allocation [1] - Changes in allocation become effective after the close on the first business day following a trigger, with the new position in effect on the second business day [1] - Signals for allocation adjustments are evaluated each business day, with no additional security selection or weighting beyond these exposures [1]