Pacer Trendpilot US Bond ETF

Pacer Trendpilot US Bond ETF (PTBD) tracks a rules-based index that moves between three positions: all high-yield corporate bonds, a 50/50 mix with 7- to 10-year US Treasuries, or all Treasuries. Which one it holds depends on which side has been trending better. The aim is to hold higher-paying, riskier bonds in good stretches and move toward Treasuries in weak ones. That approach costs 0.60% a year, far more than SPDR Portfolio High Yield Bond ETF (0.05%).

• Over the year to Oct 27, 2026, PTBD returned -0.4%, 8th of 8 among similar funds.
• Its 5-year annualized return was -1.6%.
• In the 2020 COVID crash it fell 6.5% and regained its old high 4.1 months after the low.
• Its worst full calendar year was 2022 (-20.9%); its best was 2020 (+10.6%).
• The deepest fall in its price history was 26% (Aug 3, 2021 to Sep 27, 2022), not yet recovered.

As of Jul 31, 2026, the fund held 990 securities; the ten largest made up 3.82% of assets, and 2.73% sat in cash and money-market holdings.

The bonds mature in 5.4 years on average (weighted by size), with an average coupon of 6.7%.

• Over the three months to Jul 31, 2026, investors withdrew a net $7.7M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.42%, +0.16%, -0.37%.

PTBD tracks the Pacer Trendpilot US Bond Index. Index Design Group built the index, and it is an affiliate of the fund's adviser, Pacer Advisors. The index is always in one of three positions. The first is 100% in the iBoxx USD Liquid High Yield Index, which holds bonds from companies with weaker credit that pay more interest to make up for the risk. The second is a 50/50 split with the iBoxx USD Treasuries 7-10 Year Index. The third is 100% in those Treasuries.

A "Risk Ratio" decides the position. It is the value of the high-yield index divided by the value of the Treasury index. If the ratio closes above its 100-day moving average (the average of the past 100 daily closes) for five business days in a row, the index goes fully into high yield. Five closes in a row below that average move it to 50/50. If the 100-day average falls below where it was five business days earlier, the index moves fully into Treasuries. Each change takes effect by the sixth business day after the signal. The index can stay in one position for long periods.

As of July 31, 2026, the fund had 990 holdings, and 97.6% of its assets were in corporate bonds. Their average maturity was 5.4 years. No single holding was above 0.6%. The largest were 1261229 BC Ltd, Meridian Arc Holdco and EchoStar. Moving between positions led to portfolio turnover of 623%.

• PTBD charges 0.6% a year, versus an average of 0.35% for the similar funds below (6th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).

PTBD pays high monthly income from high-yield bonds, but its trend rule did not prevent a 26% loss that had not been recovered as of October 27, 2026, so it fits better as a small position than as a core bond holding.

PTBD could add high monthly income: its trailing 12-month yield was 6.36% as of October 27, 2026. The trend rule is meant to limit high-yield losses. In the 2020 COVID crash the fund fell 6.5% and recovered in about four months. In 2022 the rule did not help. The fund lost 20.85% that year, and its deepest drop, 26% from August 2021 to September 2022, had still not been recovered as of October 27, 2026. Anyone who had to sell shares or take income during that stretch would have locked in losses. The fund launched in 2019, so it has no record from 2008. In the SEC's standard example, the 0.60% expense ratio costs $61 in the first year and $750 over 10 years on $10,000. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).