What this ETF is trying to do

The PACER TRENDPILOT FUND OF FUNDS ETF (ticker: TRND) is an exchange-traded fund. Instead of just buying individual stocks, this "fund of funds" invests in other ETFs. Its portfolio is made up of five main holdings:

• PACER TRENDPILOT “$ 100 ETF (PTNQ): 20.15%

• PACER TRENDPILOT “ US MID CAP ETF (PTMC): 20.07%

• PACER TRENDPILOT US BOND ETF (PTBD): 20.00%

• PACER TRENDPILOT “ US LARGE CAP ETF (PTLC): 19.95%

• PACER TRENDPILOT INTERNATIONAL ETF (PTIN): 19.75%

What the numbers show

The current price of one share is $36.99. An estimated price from roughly one year ago was $33.77.

When looking at performance, it is important to know the difference between "price return" and "total return." Price return only tracks how much the share price moves. Total return includes those price changes plus any cash distributions paid to investors.

• One-Year: The one-year price return was approximately 9.55%. However, the one-year total return was higher, at approximately 12.09%.

• Year-to-Date (YTD): Both the YTD price return and the YTD total return are approximately 9.92%.

• Three-Year: The three-year price return was approximately 30.88%, while the three-year total return was approximately 40.42%.

To see how the share price alone changed, imagine you had $10,000 worth of shares one year ago. Based on the 9.55% price return, that investment would be worth approximately $10,955 today.

Income and distribution explanation

This ETF provides a distribution yield of approximately 2.11%. This represents the cash distributions relative to the ETF's price. The trailing distributions over the last year were $0.78 per share. These payments are described as "irregular" or "less frequent." It is important to remember that a distribution yield is not the same as total return.

NAV erosion explanation

"NAV erosion" refers to a decline in the value of the actual assets held within the fund. Some investors worry about this because if the underlying value drops, it can be hard to get their original money back. For TRND, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• The fund has shown positive total returns over one, three, and five years.

• The erosion-risk measurement is considered "good."

• The portfolio is spread across different types of assets, like large caps, mid caps, international stocks, and bonds.

Cons

• The cash distributions are irregular and do not happen on a set schedule.

Beginner takeaway

TRND is a fund that holds other funds to create a mix of investments. While the share price has grown over the last few years, investors also receive occasional cash distributions. When looking at this ETF, you should look at both the price return and the total return to see the full picture of how the value has changed.