Worry-Free Investing in Uncertain Markets

Fear of rising interest rates affecting retirement savings was high amongst all the age ranges, with 73% reporting that they were either somewhat or very worried about the long-term effects of inflation on their savings. The survey found that resoundingly, most Americans were still very risk-averse with their investments and finances, a trend that began in earnest with the onset of the COVID-19 pandemic.

“Our survey found external market conditions are primary concerns for American investors, and while it is important for them to be aware of these changes, it is also critical that they don’t panic – especially if their retirement is 20-30 years away,” said Chris Blunt, CEO of F&G, in the press release.

These worries are sentiments that are reflecting broadly across markets as investors wrestle with investing in a historically high-inflation environment and facing rising interest rates next year. Markets continue to be choppy as investors retreat from equity investments and take refuge in bonds, but as supply chain tangles begin to relax and economies push to reopen more fully, there is still potential for growth from equity markets.

The Pacer Trendpilot 100 ETF (PTNQ ) takes the worry and guesswork out of market trend tracking for investors by utilizing an approach that responds in three different ways to market condition changes. The fund seeks to track the Pacer NASDAQ-100 Trendpilot Index, an index that utilizes a rules-based, objective methodology to enact a trend-following strategy that has three different levels of exposure to the Nasdaq-100, depending on its performance.

The Nasdaq-100 tracks the top 100 biggest securities outside of the financial sector that are listed on the Nasdaq and include industries such as biotechnology, healthcare, telecommunications, transportation, and computers, all industries that show potentials for disruptive growth moving forward.

The index will have either 100% exposure to the Nasdaq-100 when the index closes above its 200-day moving average for five business days in a row, 50% exposure to the index and 50% exposure to three-month U.S. Treasury bills if the index closes below its 200-day moving average for five business days in a row, or 100% exposure to three-month U.S. Treasury bills if the index continues to close below its 200-day moving average for five days beyond that.

The index also responds in times of extreme volatility when the index is 20% above or 20% below its 200-day moving average to the 50% split between equities and Treasury bills at the close of the next business day.

The index is designed to help alleviate some of the volatility that the technology sector and general markets can sometimes experience by tracking Treasury bills instead when equities are experiencing a prolonged or drastic downturn and can take a lot of worry out of tracking market trends for investors.

PTNQ carries an expense ratio of 0.65%, and the fund is currently tracking 50% equities and 50% Treasury bills.

For more news, information, and strategy, visit the Nasdaq Portfolio Solutions Channel.