Strategy. The Fund employs a passive management (or indexing) investment approach designed to track the total return performance, before fees and expenses, of the Index. The Index is based on a proprietary methodology developed and maintained by Index Design Group (the Index Provider), an affiliate of Pacer Advisors, Inc., the Funds investment adviser (the Adviser). The Index utilizes a systematic risk management strategy that directs the Indexs exposure to U.S. equity securities, U.S. Treasury securities, or a mix of each. The Index The Index uses an objective, rules-based methodology to implement a trend-following strategy that directs some or all of the Indexs exposure to (i) U.S. equity securities or (ii) U.S. Treasury securities depending on the strength of the high-yield corporate … Show more… The Fund employs a passive management (or indexing) investment approach designed to track the total return performance, before fees and expenses, of the Index. The Index is based on a proprietary methodology developed and maintained by Index Design Group (the Index Provider), an affiliate of Pacer Advisors, Inc., the Funds investment adviser (the Adviser). The Index utilizes a systematic risk management strategy that directs the Indexs exposure to U.S. equity securities, U.S. Treasury securities, or a mix of each. The Index The Index uses an objective, rules-based methodology to implement a trend-following strategy that directs some or all of the Indexs exposure to (i) U.S. equity securities or (ii) U.S. Treasury securities depending on the strength of the high-yield corporate (junk) bond market relative to U.S. Treasury bonds and the momentum of certain U.S. equity sectors or industries and of long-term U.S. Treasury bonds, as described below. Exponential Moving Average: An exponential moving average (EMA) is a type of moving average that reacts faster to recent price changes than a simple moving average. Exposure to Equities or Fixed Income On the third-to-last business day of each month (the Selection Date), the Index will observe the ratio between the S&P U.S. High Yield Corporate Bond Index and the S&P U.S. Treasury Bond 7-10 Year Index (the Risk Ratio). The Risk Ratio relative to its 5-month exponential moving average determines whether the Index will be in Equity Mode or Fixed Income Exposure, each as described below, for the following month effective on the first day of such month. If the Risk Ratio is at or above its 5-month exponential moving average, the Index will be in Equity Exposure for the following month. If the Risk Ratio is below its 5-month exponential moving average, the Index will be in Fixed Income Exposure for the following month. Equity Exposure If the Risk Ratio dictates that the Index will be in Equity Exposure for the following month, the Index will select the five U.S. equity market components (Equity Components) from the list below with the best performance. The performance of each Equity Component is updated quarterly as of the Selection Date in each March, June, September, and December, and is based on the total return for the 6-month period ending on such Selection Date. S&P 500 Energy Sector Total Return Index S&P 500 Materials Sector Total Return Index S&P 500 Information Technology Sector Total Return Index S&P 500 Industrials Sector Total Return Index S&P 500 Financials Sector Total Return Index S&P 500 Health Care Sector Total Return Index S&P 500 Utilities Sector Total Return Index S&P 500 Real Estate Sector Total Return Index S&P 500 Consumer Staples Sector Total Return Index S&P Biotechnology Select Industry Total Return Index S&P 500 Consumer Discretionary Sector Total Return Index Dow Jones Internet Composite Index Each of the five Equity Components selected will be equally weighted (i.e ., 20% to each Equity Component). However, if the value of any of the Equity Components selected is below such Equity Components 7-month exponential moving average, the 20% allocation to each such Equity Component will instead be allocated to 3-month U.S. Treasury bills. For each Equity Component included in the Index, the individual equity securities of such Equity Component will be included in the Index holdings in the proportion they had as of the Selection Date. When all five Equity Components selected are included in the Index, the Index will be comprised of approximately 400 individual equity securities. Fixed Income Exposure If the Risk Ratio dictates that the Index will be in Fixed Income Exposure for the following month, the Index will be 100% allocated to the S&P U.S. Treasury Bond 20+ Year Total Return Index (the 20+ Year Index). However, if the value of the 20+ Year Index is below its 7-month exponential moving average, the Index will instead be 100% allocated to 3-month U.S. Treasury bills. The constituents identified as of the Selection Date will become effective on the first business day of the month following the Selection Date. The Funds Investment Strategy The Fund is classified as diversified under the Investment Company Act of 1940, as amended (the 1940 Act). However, the Fund may become non-diversified solely as a result of a change in the relative market capitalization or index weighting of one or more constituents of the Index. The Fund attempts to invest all, or substantially all, of its assets in the component securities that make up (i) the component securities of the Index or (ii) ETFs that seek to track the performance of some or all of the component securities of the Index in the same approximate weight as such component securities. The Funds investments in the component securities of the Index will consist of equity and/or fixed income securities or other ETFs investing in such equity and/or fixed income securities. The Adviser expects that, over time, the correlation between the Funds performance and that of the Index, before fees and expenses, will be 95% or better. The Fund will generally use a replication strategy to achieve its investment objective, meaning it will invest in all of the component securities of the Index in the same approximate proportion as in the Index. The Fund may invest in other ETFs whose holdings correspond to the holdings of an Equity Component when such Equity Component is included in the Index. Similarly, the Fund may invest in other ETFs whose holdings correspond to the holdings of the 20+ Year Index or are comprised of 3-month U.S. Treasury bills when such components are included in the Index. Show less