SZNE Profile
The Pacer CFRA-Stovall Equal Weight Seasonal Rotation Index ETF is designed to provide investors with a dynamic approach to sector investing by tracking a semi-annual rotation strategy. The fund utilizes an objective, rules-based methodology to follow the performance of a sector rotation index that is based on the S&P 500 Equal Weight Index. This index specifically rotates between sectors of the S&P 500 based on seasonal performance trends, providing a systematic approach to capturing potential sector performance variations throughout the year.
The index's strategy involves a semi-annual rebalancing that aligns with historical seasonal trends, aiming to capitalize on periods when specific sectors have historically outperformed. By adhering to this rotation strategy, the index seeks to enhance returns by investing in sectors expected to perform well based on historical data and market cycles. The methodology is designed to provide broad exposure to sectors within the S&P 500 while adjusting allocations based on seasonal performance factors.
Under normal market conditions, the fund invests all, or substantially all, of its assets in the securities that comprise the underlying index. This may involve direct investments in the component securities of the index or through exchange-traded funds (ETFs) that replicate the performance of these securities. The approach ensures that the fund's holdings mirror the sector allocations and weightings of the index, providing investors with exposure to the sectors poised for seasonal outperformance.
The fund's focus on a rules-based, seasonal rotation strategy aims to deliver returns that reflect the historical seasonal strengths of various sectors within the S&P 500. Investors seeking to align their portfolios with seasonal trends and potentially enhance returns through tactical sector allocations may find this fund appealing. By systematically rotating sectors based on seasonal patterns, the ETF offers a structured approach to capturing sector-specific performance opportunities in the U.S. equity market.
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