Pacer Funds

 

TABLE OF CONTENTS

 

 

Page

Letter to Shareholders

1

Portfolio Allocation

21

Performance Summary

30

Expense Example

59

Schedules of Investments

62

Statements of Assets & Liabilities

153

Statements of Operations

159

Statements of Changes in Net Assets

165

Financial Highlights

179

Notes to Financial Statements

206

Report of Independent Registered Public Accounting Firm

232

Additional Information

236

 

 

Pacer Funds

 

Dear Shareholder,

 

The highs and lows of the economy and stock market over the past year have been many. The final months of 2021 were promising as the availability of vaccines and boosters allowed many businesses to reopen, mask mandates to lift and life to start to get back to normal after the challenges of a nearly two year worldwide pandemic. The stock market had a solid performance in 2021 with the S&P 500 returning 26.9% and Nasdaq Composite gaining 21.4%.

 

During this time, Pacer experienced notable growth across its existing exchange traded funds ending the year at a company milestone of $10.2 billion in assets under management (AUM), a 76% increase from December 31, 2020. Pacer added 12 new funds through new launches and acquisitions such as the Pacer Swan SOS Series, the Pacer Metaurus US Large Cap Dividend Multiplier 300 Fund, Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF and the Pacer Pacific Asset Floating Rate High Income ETF. To enable Pacer’s growth, the firm added 46 employees in 2021 along with a third distribution channel to reach more financial advisors.

 

Unfortunately, the early months of 2022 have brought extreme volatility due to geopolitical concerns, rising interest rates and high inflation. These concerns have led the stock market to take a negative turn with the S&P 500 currently in bear market territory. In spite of these things, the company has continued to grow its assets under management to $13.3 billion (as of April 29, 2022) with the Pacer Cash Cows ETF Series leading the way.

 

The Cash Cows Series, launched in 2016, is now Pacer’s largest fund family with assets of $5.85 billion (as of April 29, 2022). It has surpassed the previous largest, Pacer’s Trendpilot Series, by approximately $1.7 billion as the fund series continues to deliver on its objective of investing in companies with high free-cash-flow yield. We credit this momentum to the Pacer wholesaler model of working closely with financial advisors to support their business and portfolio construction. This growth can also be attributed to a transition from growth stocks to value stocks. What separates Pacer’s Cash Cows series from other value-oriented strategies is the firm’s approach to measuring free-cash-flow relative to a company’s enterprise value. Incorporating enterprise value looks at the true value of a company, including its debt, which is not captured by price/book the traditional metric for measuring value.

 

Since our inception nearly seven years ago, our goal has been to design innovative products to help investors and financial advisors reach their investment goals. We thank our investors, financial advisors, and our partners for continuing to entrust your assets with us.

 

 

Joe M. Thomson
Chairman, Pacer Funds Trust

 

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Pacer Funds

 

The second half of the 2021-year finished very strong. The S&P 500 gained 26.9%, the Dow Jones Industrial Average gained 18.7%, and the Nasdaq Composite gained 21.4% for 2021. The unemployment rate was also very low at a rate of 3.9%. The covid pandemic still raged on, with variants like delta and omicron leading to case outbreaks throughout the year, but it was not enough to slow the equity markets. The stock market also got some help from the Federal Reserve, which kept its short-term interest rate at .05%. This helped keep borrowing costs for companies low and stock valuations high. It was a different look in the bond market. Bonds ended the year lower with The Bloomberg Barclays Aggregate Composite falling 1.77%. Despite the growth in the economy one concern that made its presence was inflation. The annual inflation rate for the United States at the end of the year was 7.0% for the 12 months ended December 2021 and it foreshadowed what a new year would bring to the markets.

 

The start of 2022 did not fare well for most of the stock market. The first half of the year started with a storm of events; from political turmoil around the presidential election, a war in Europe between Russia and Ukraine, to the Federal Reserve (Fed) stepping in to control the inflation rate. The S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite have year to date returns of -13.79%, -9.86%, and -22.09% respectively as of April 30, 2022. The biggest factors affecting the market right now are the current inflation rate and the Fed decision on short-term interest rates. We’ve seen inflation rise this year to 8.26% for the month of April. In an anticipated move, the Federal Reserve raised interest rates by a half percentage point, in an attempt to curb inflation. This had a rippling effect on equities and a direct effect on the bond market which saw its prices drop due to the increase in interest rates. The Barclays Aggregate U.S. Bond Index has fallen about 10% since the beginning of the year. It appears that the Fed might not be done raising interest rates. In recent statements Federal Reserve Chairman, Jerome Powell, expressed his support for raising interest rates again to combat inflation.

 

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Pacer Funds

 

The Pacer Trendpilot™ Series

 

The Pacer Trendpilot series is based on a trend following strategy that alternates exposure between a Benchmark Index and 3-Month US T-Bills using three indicators. It is designed to participate in the market when it is trending up, maintain some exposure during short term market declines and exit the market when it is trending down. The period referenced in this section for all Trendpilot Funds is for the fiscal year end of April 30, 2022.

 

Pacer Trendpilot® US Large Cap ETF

 

The Pacer Trendpilot® US Large Cap ETF (the “Fund”) is an exchange traded fund that seeks to track the total return performance, before fees and expenses, of the Pacer Trendpilot® US Large Cap Index (the “Index”).

 

The Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the S&P 500 Index, (ii) 50% to the S&P 500 Index and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the S&P 500 Total Return Index and its 200-business day historical simple moving average.

 

The S&P 500 Total Return Index is a total return version of the S&P 500 Index and reflects the reinvestment of dividends paid by the securities in the S&P 500 Index. The S&P 500 Index consists of approximately 500 leading U.S.-listed companies representing approximately 80% of the U.S. equity market capitalization.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of 3.48%. The Index had a total return of 4.19%. The S&P 500 Index had a total return of 0.21%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 1.29%, Health Care at 0.96%, and Consumer Staples at 0.82%. The three sectors with the lowest contribution to performance were Industrials at -0.43%, Consumer Discretionary at -1.20%, and Communication Services at -2.00%. Sector performance numbers reflect their total return during the period.

 

The Fund had the following exposure changes during the fiscal year. Summary details of these changes are presented in the following table.

 

PTLC EXPOSURE CHANGES

Dates

Resulting Exposure

U.S. Treasury 3-Month Yield

February 25, 2022

50/50

0.30%

March 25, 2022

Equity

0.47%

April 19 ,2022

50/50

0.79%

April 28, 2022

T-Bills

0.82%

 

Pacer Trendpilot® US Mid Cap ETF

 

The Pacer Trendpilot® US Mid Cap ETF (the “Fund”) is an exchange traded fund that seeks to track the total return performance, before fees and expenses, of the Pacer Trendpilot US Mid Cap Trendpilot Index (the “Index”).

 

The Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the S&P MidCap 400 Index, (ii) 50% to the S&P MidCap 400 Index and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the S&P MidCap 400 Total Return Index and its 200-business day historical simple moving average.

 

The S&P MidCap 400 Total Return Index is a total return version of the S&P MidCap 400 Index and reflects the reinvestment of dividends paid by the securities in the S&P MidCap 400 Index. The S&P Midcap 400 measures the performance of mid-capitalization stocks in the United States.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -2.98%. The Index had a total return of -2.63%. The S&P MidCap 400 Index had a total return of -7.03%.

 

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During the fiscal year, the top three sectors for contribution to performance were Financials at 0.30%, Energy at 0.27%, and Real Estate at 0.18%. The three sectors with the lowest contribution to performance were Industrials at -0.72%, Health Care at -0.89%, and Consumer Discretionary at -1.20%. Sector performance numbers reflect their total return during the period.

 

The Fund had the following exposure changes during the fiscal year. Summary details of these changes are presented in the following table.

 

PTMC EXPOSURE CHANGES

Dates

Resulting Exposure

U.S. Treasury 3-Month Yield

January 26, 2022

T-Bills

0.19%

 

Pacer Trendpilot® 100 ETF

 

The Pacer Trendpilot® 100 ETF (the “Fund”) seeks to track the total return performance, before fees and expenses, of the Pacer NASDAQ-100 Trendpilot™ Index (the “Index”).

 

The Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the Nasdaq-100 Index, (ii) 50% to the Nasdaq-100 Index and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the Nasdaq-100 Total Return Index and its 200-business day historical simple moving average.

 

The Nasdaq-100 Total Return Index is a total return version of the Nasdaq-100 Index and reflects the reinvestment of dividends paid by the securities in the Nasdaq-100 Index. The Nasdaq-100 Index includes approximately 100 of the largest non-financial securities listed on The Nasdaq Stock Market based on market capitalization. The Nasdaq-100 Index comprises securities of companies across major industry groups, including computer, biotechnology, healthcare, telecommunications and transportation. However, it does not contain securities of financial companies, including investment companies. The Nasdaq-100 Index was developed by Nasdaq OMX. There is no minimum market capitalization requirement for inclusion in the Nasdaq-100 Index. Inclusion is determined based on the top 100 largest issuers based on market capitalization meeting all other eligibility requirements.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -3.38%. The Index had a total return of -2.77%. The NASDAQ-100 Index had a total return of -6.61%.

 

During the fiscal year, the top three sectors for contribution to performance were Information Technology at 1.04%, Consumer Staples at 0.33%, and Utilities at 0.09%. The three sectors with the lowest contribution to performance were Industrials at -0.06%, Consumer Discretionary at -1.20%, and Communication Services at -1.55%. Sector performance numbers reflect their total return during the period.

 

The Fund had the following exposure changes during the fiscal year. Summary details of these changes are presented in the following table.

 

PTNQ EXPOSURE CHANGES

Dates

Resulting Exposure

U.S. Treasury 3-Month Yield

March 14, 2022

T-Bills

0.38%

 

Pacer Trendpilot® European Index ETF

 

The Pacer Trendpilot® European Index ETF (the “Fund”) seeks to track the total return performance, before fees and expenses, of the Pacer Trendpilot European Index (the “Index”).

 

The Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the FTSE Eurozone Index, (ii) 50% to the FTSE Eurozone Index and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the FTSE Eurozone Total Return Index and its 200-business day historical simple moving average.

 

The FTSE Eurozone Index is a rules-based, float-adjusted, market capitalization weighted index comprised of large- and mid-capitalization stocks providing coverage of the developed markets in the euro zone, including primarily France, Germany, Spain, the Netherlands and Italy. The FTSE Eurozone Index is a subset of the FTSE Global Equity Index Series, which covers 98% of the world’s investable market capitalization. The FTSE Eurozone Total Return Index is a total return version of the FTSE Eurozone Index and reflects the reinvestment of dividend paid by the securities in the FTSE Eurozone Index.

 

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The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -6.47%. The Index had a total return of -5.59%. The FTSE Eurozone Index (USD) had a total return of -13.51%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 0.47%, Telecommunication Services at 0.06%, and Financials at -0.16%. The three sectors with the lowest contribution to performance were Industrials at -1.29%, Information Technology at -1.36%, and Consumer Discretionary at -2.31%. Sector performance numbers reflect their total return during the period.

 

The Fund had the following exposure changes during the fiscal year. Summary details of these changes are presented in the following table.

 

PTEU EXPOSURE CHANGES

Dates

Resulting Exposure

U.S. Treasury 3-Month Yield

February 18, 2022

50/50

0.32%

March 2, 2022

T-Bills

0.32%

 

Pacer Trendpilot® International ETF

 

The Pacer Trendpilot® International ETF is an exchange traded fund (the “Fund”) that seeks to track the total return performance, before fees and expenses, of the Pacer Trendpilot International Index (the “Index”).

 

The Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the S&P Developed Ex-U.S. LargeCap Index, (ii) 50% to the S&P Developed Ex-U.S. LargeCap Index and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the S&P Developed Ex-U.S. LargeCap Index and its 200-business day historical simple moving average (the “200-day moving average”). The calculation of the 200-day moving average for the S&P Developed Ex-U.S. LargeCap Index is based on the total return version of the S&P Developed Ex-U.S. LargeCap Local Currency Index and reflects the reinvestment of dividends paid by the securities in the S&P Developed Ex-U.S. LargeCap Index. The Index is expected to be predominantly invested in the components of the S&P Developed Ex-U.S. LargeCap Index over most short- and long-term periods and is only expected to invest in 3-Month US Treasury bills from time to time in response to adverse market conditions as defined by the “50/50 Indicator” and “T-Bill Indicator” below.

 

The S&P Developed Ex-U.S. LargeCap Index is a rules-based, float-adjusted, market capitalization-weighted index comprised of large-capitalization stocks providing coverage of the developed markets excluding the United States. The S&P Developed Ex-U.S. LargeCap Index is a subset of the S&P Global BMI, a comprehensive, rules-based index measuring global stock market performance.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -11.46%. The Index had a total return of -11.25%. The S&P Developed Ex-US Large Cap Index had a total return of -6.82%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 1.21%, Materials at -0.05%, and Real Estate at -0.17%. The three sectors with the lowest contribution to performance were Industrials -1.47%, Consumer Discretionary at -1.54%, and Financials at -2.03%. Sector performance numbers reflect their total return during the period.

 

The Fund had the following exposure changes during the fiscal year. Summary details of these changes are presented in the following table.

 

PTIN EXPOSURE CHANGES

Dates

Resulting Exposure

U.S. Treasury 3-Month Yield

January 31, 2022

50/50

0.18%

February 8, 2022

Equity

0.26%

February 28, 2022

50/50

0.29%

March 8, 2022

T-Bills

0.34%

April 5, 2022

Equity

0.62%

April 13, 2022

50/50

0.74%

April 28, 2022

T-Bills

0.82%

 

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Pacer Trendpilot® US Bond ETF

 

The Pacer Trendpilot US Bond ETF (the “Fund”) is an exchange traded fund that seeks to track the total return performance, before fees and expenses, of the Pacer Trendpilot US Bond Index (the “Index”).

 

The Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure to one of the following positions: (i) 100% to the S&P U.S. High Yield Corporate Bond Index, (ii) 50% to the S&P U.S. High Yield Corporate Bond Index and 50% to the S&P U.S. Treasury Bond 7-10 Year Index or (iii) 100% to S&P U.S. Treasury Bond 7-10 Year Index, depending on the Risk Ratio.

 

The S&P U.S. High Yield Corporate Bond Index is designed to track the performance of U.S. dollar-denominated, high-yield corporate bonds issued in the U.S. The S&P U.S. Treasury Bond 7-10 Year Index is designed to measure the performance of U.S. Treasury bonds maturing in 7 to 10 years. The Index uses a “Risk Ratio” to signal a change in the position of the Index. The Risk Ratio is calculated by dividing the value of the S&P U.S. High Yield Corporate Bond Index by the value of the S&P U.S. Treasury Bond 7-10 Year Index.

 

The Index, and consequently the Fund, may stay in any of its three possible positions for an extended period of time. As described below, the Index will change its position based on the following indicators, and each change will become effective by the close of business on the sixth business day after the indicator for the change is triggered. The Index will be in a new position effective on the seventh business day.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -12.54%. The Index had a total return of -8.90%. The S&P US High Yield Corporate Bond Index had a total return of -5.20%.

 

PTBD had three exposure changes initiated on September 9, 2021, December 15, 2021, and March 25, 2022, resulting in exposure 100% High Yield Bonds, and 10-Year yields at the time were 1.34%, 1.46%, and 2.47%, respectively. When PTBD had three exposure changes to T-Bills on August 10, 2021, December 6, 2021, and February 28, 2022, 10- Yields during those changes were 1.35%, 1.43%, 1.83%, respectively. PTBD saw one exposure to 50/50 at a 10-Year Yield of 1.28%.

 

The Fund had the following exposure changes during the fiscal year. Summary details of these changes are presented in the following table.

 

PTBD EXPOSURE CHANGES

Dates

Resulting Exposure

U.S. Treasury 10-Year Yield

July 23, 2021

50/50

1.28%

August 10, 2021

T-Bills

1.35%

September 9, 2021

High Yield

1.34%

December 6, 2021

T-Bills

1.43%

December 15, 2021

High Yield

1.46%

February 28, 2022

T-Bills

1.83%

March 25, 2022

High Yield

2.47%

 

Pacer Trendpilot® Fund of Funds ETF

 

The Pacer Trendpilot Fund of Funds ETF (the “Fund”) is an exchange traded fund (“ETF”) that seeks to track the total return performance, before fees and expenses, of the Pacer Trendpilot Fund of Funds Index (the “Index” or the “Fund of Funds Index”).

 

The Fund of Funds Index uses an objective, rules-based approach to construct a portfolio that, as of each quarterly rebalance, is composed of the ETFs listed in the following table, each advised by the Adviser (collectively, the “Trendpilot ETFs”). Each of the Trendpilot ETFs is an index-based ETF that seeks to track the total return performance, before fees and expenses, of the underlying index listed in the following table (collectively, the “Trendpilot Indexes”). Each Trendpilot Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the “Equity Component” specified in the table below, (ii) 50% to the applicable Equity Component and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the Equity Component and its 200- business day historical simple moving average (the “200-day moving average”). The calculation of the 200-day moving average for each Equity Component is based on the total return version of such Equity Component and reflects the reinvestment of dividends paid by the securities in such Equity Component.

 

Weight

Trendpilot ETF

Trendpilot Index

Equity Universe

20%

Pacer Trendpilot® US Large Cap ETF

Pacer Trendpilot US Large Cap Index S

S&P 500® Index

 

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Weight

Trendpilot ETF

Trendpilot Index

Equity Universe

20%

Pacer Trendpilot® US Mid Cap ETF

Pacer Trendpilot US Mid Cap Index

S&P MidCap 400® Index

20%

Pacer Trendpilot® 100 ETF

Pacer NASDAQ-100 Trendpilot Index

NASDAQ-100® Index

20%

Pacer Trendpilot® International ETF

Pacer Trendpilot International Index

S&P Developed Ex-U.S. LargeCap Index

20%

Pacer Trendpilot® US Bond ETF

Pacer Trendpilot US Bond Index

S&P U.S. High Yield Corporate Bond Index

 

The Fund

 

The Fund had a NAV total return of -5.87%. The Index had a return of -4.38%. The S&P Global 1200 Index had a total return of -3.10%.

 

The Pacer Cash Cows Index® ETF Series

 

The Pacer Cash Cows ETFs aim to provide capital appreciation over time by screening broad based indexes to identify quality companies with high free cash flow yield. The period referenced in this section for all Cash Cows Funds is for the fiscal year end of April 30, 2022.

 

Pacer Global Cash Cows Dividend ETF

 

The Pacer Global Cash Cows Dividend ETF (the “Fund”) seeks to track the total return performance, before fees and expenses, of the Pacer Global Cash Cows Dividend Index (the “Index”).

 

The Index uses an objective, rules-based methodology to provide exposure to global companies with high dividend yield backed by a high free cash flow yield. The initial index universe is derived from the component companies of the FTSE Developed Large Cap Index. The initial universe of companies is screened based on their average projected free cash flows and earnings over each of the next two fiscal years. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts, are excluded from the Index universe. The remaining companies are ranked by their free cash flow yield for the trailing twelve-month period. The 300 companies with the highest free cash flow yield are then ranked by their dividend yield. The equity securities of the 100 companies with the highest dividend yield are included in the Index.

 

The FTSE Developed Large-Cap Index is a market-capitalization weighted index representing the performance of large-cap stocks in developed markets. The FTSE Developed Large-Cap Total Return Index is a total return version of the FTSE Developed Large-Cap Index and reflects the reinvestment of dividends paid by the securities in the FTSE Developed Large-Cap Index.

 

The Fund

 

The Fund had a NAV total return of 10.22%. The Index had a total return of 11.59%. The FTSE Developed Large-Cap Index had a total return of -3.35%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 34.60%, Health Care at 19.53%, and Information Technology at 11.11%. The three sectors with the lowest contribution to performance were Real Estate at -12.63%, Consumer Discretionary at -5.68%, and Utilities at -5.32%. Sector performance numbers reflect their total return during the period.

 

Pacer US Cash Cows 100 ETF

 

The Pacer US Cash Cows 100 ETF (the “Fund”) seeks to track the total return performance, before fees and expenses, of the Pacer US Cash Cows 100 Index (the “Index”).

 

The Index uses an objective, rules-based methodology to provide exposure to large and mid-capitalization U.S. companies with high free cash flow yields. The initial index universe is derived from the component companies of the Russell 1000 Index. The initial universe of companies is screened based on their average projected free cash flows and earnings over each of the next two fiscal years. Companies with no forward year estimates available for free cash flows or earnings will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts, are excluded from the Index universe. The remaining companies are ranked by their free cash flow yield for the trailing twelve-month period. The equity securities of the 100 companies with the highest free cash flow yield are included in the Index.

 

The Russell 1000 Index is a market-capitalization weighted index representing the top 1,000 large-cap stocks in the Russell 3000 Index. The Russell 1000 Total Return Index is a total return version of the Russell 1000 Index that reflects the reinvestment of dividends paid by the securities in the Russell 1000 Index.

 

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The Fund

 

The Fund had a NAV total return of 16.08%. The Index had a total return of 16.76%. The Russell 1000 Index had a total return of -2.10%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 114.65%, Consumer Staples at 52.89%, and Health Care at 27.33%. The three sectors with the lowest contribution to performance were Industrials at -11.02%, Information Technology at -10.70%, and Communication Services at -10.47%. Sector performance numbers reflect their total return during the period.

 

Pacer US Small Cap Cash Cows 100 ETF

 

The Pacer US Small Cap Cash Cows 100 ETF (the “Fund”) seeks to track the total performance, before fees and expenses, of the Pacer US Small Cap Cash Cows 100 Index (the “Index”).

 

The Index uses an objective, rules-based methodology to provide exposure to small-capitalization U.S. companies with high free cash flow yields. The initial index universe is derived from the component companies of the S&P Small Cap 600 Index. The initial universe of companies is screened based on their average projected free cash flows and earnings over each of the next two fiscal years. Companies with no forward year estimates available for free cash flows or earnings will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts, are excluded from the Index universe. The remaining companies are ranked by their free cash flow yield for the trailing twelve-month period. The equity securities of the 100 companies with the highest free cash flow yield are included in the Index.

 

The S&P SmallCap 600 Index measures the performance of 600 small sized companies in the US equity market, with market capitalization ranging from $450 million to $2.1 billion USD. The Index does not overlap holdings with the S&P 500 or S&P MidCap 400.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -6.57%. The Index had a total return of -5.91%. The S&P 600 Index had a total return of -8.54%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 44.56%, Materials at 28.43%, and Industrials at 8.00%. The three sectors with the lowest contribution to performance were Communication Services at -55.61%, Real Estate at -29.03%, and Health Care at -16.80%. Sector performance numbers reflect their total return during the period.

 

Pacer Developed Markets International Cash Cows 100 ETF

 

The Pacer Developed Markets International Cash Cows 100 ETF (the “Fund”) seeks to track the total performance, before fees and expenses, of the Pacer Developed Markets International Cash Cows 100 Index (the “Index”).

 

The Index uses an objective, rules-based methodology to provide exposure to large and mid-capitalization non-U.S. companies in developed markets with high free cash flow yields. The initial index universe is derived from the component companies of the FTSE Developed ex US Index. The initial universe of companies is screened based on their average projected free cash flows and earnings over each of the next two fiscal years. Companies with no forward year estimates available for free cash flows or earnings will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts and companies with a market capitalization of less than $3 billion are excluded from the Index universe. The remaining companies are ranked by their average daily trading value (“ADTV”) for the prior three months. The 500 companies with the highest ADTV are then ranked by their free cash flow yield for the trailing twelve-month period. The equity securities of the 100 companies with the highest free cash flow yield are included in the Index.

 

The FTSE Developed ex-US Index is comprised of Large (85%) and Mid (15%) cap stocks providing coverage of Developed markets (24 countries) excluding the US. The Index is derived from the FTSE Global Equity Index Series, which covers over 99% of the world’s investable market capitalization.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -4.48%. The Index had a total return of -3.22%. The FTSE Developed ex-US Index had a total return of -7.93%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 40.54%, Consumer Staples 11.62%, and Communication Services at 10.80%. The three sectors with the lowest contribution to performance were Utilities at -40.99%, Consumer Discretionary at -21.66%, and Information Technology at -19.92%. Sector performance numbers reflect their total return during the period.

 

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Pacer Emerging Markets Cash Cows 100 ETF

 

The Pacer Emerging Markets Cash Cows 100 ETF (the “Fund”) is an exchange traded fund that seeks to track the total return performance, before fees and expenses, of the Pacer Emerging Markets Cash Cows 100 Index (the “Index”).

 

The Index uses an objective, rules-based methodology to provide exposure to large and mid-capitalization companies in emerging markets with high free cash flow yields. Companies with high free cash flow yields are commonly referred to as “cash cows”. The initial index universe is derived from the component companies of the FTSE Emerging Markets Index. The Fund defines emerging markets countries as those countries included in the FTSE Emerging Markets Index. As of April 2022, the Index had significant exposure to companies in Hong Kong, Brazil, Taiwan, and South Africa. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies with no forward year estimates available for free cash flows or earnings will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts (“REITs”), companies with a market capitalization of less than $2 billion, and companies whose average daily trading value (“ADTV”) for the prior 90 days does not exceed $5 million are excluded from the Index universe. The remaining companies are ranked by their free cash flow yield for the trailing twelve-month period. The equity securities of the 100 companies with the highest free cash flow yield (the “Top 100 Companies”) are included in the Index, subject to the exceptions described below. At the time of each rebalance of the Index, the companies included in the Index are weighted in proportion to their trailing twelve-month free cash flow, and weightings are capped at 2% of the weight of the Index for any individual company. Additionally, the Index is limited to a maximum of twenty companies from any individual country and any sector. As of April 2022, the Index had significant exposure to companies in the materials, energy and industrials sectors. If the Top 100 Companies include more than 20 companies from an individual country or sector (the “Exposure Limit”), the Index will exclude the companies with the lowest free cash flow yield from each country and/or sector needed to meet the Exposure Limit and will include companies outside the Top 100 Companies based on their free cash flow yield until the Index includes 100 companies and satisfies the Exposure Limit. As of April 30, 2022, the companies included in the Index had a market capitalization of $625 million to $93.5 billion. The Index is reconstituted and rebalanced semi-annually as of the close of business on the 3rd Friday of June and December based on data as of the 1st Friday of the applicable rebalance month.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -10.67%. The Index had a total return of -8.68%. The FTSE Emerging Market Index had a total return of -15.07%.

 

During the fiscal year, the top three sectors for contribution to performance were Telecommunication Services at 56.51%, Communication Services at 27.46%, and Energy at 13.76%. The three sectors with the lowest contribution to performance were Health Care at -56.16%, Information Technology at -29.70%, and Financials at -22.99%. Sector performance numbers reflect their total return during the period.

 

Pacer US Cash Cows Growth ETF

 

The Pacer US Cash Cows Growth ETF (the “Fund”) is an exchange traded fund that seeks to track the total return performance, before fees and expenses, of the Pacer US Cash Cows Growth Index (the “Index”).

 

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, an affiliate of Pacer Advisors, Inc., the Fund’s investment adviser (the “Adviser”). The Index uses an objective, rules-based methodology to provide exposure to mid- and large-capitalization U.S. companies with high free cash flow yields. Companies with high free cash flow yields are commonly referred to as “cash cows”. The initial Index universe is derived from the component companies of the S&P 900® Pure Growth Index. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies for which information on their projected free cash flows or earnings is not available will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts (“REITs”), are excluded from the Index universe. The remaining companies are ranked by their free cash flow yield for the trailing twelve month period. The equity securities of the 50 companies with the highest free cash flow yield are included in the Index. As of April 2022, the Index had significant exposure to companies in the information technology, consumer discretionary and health care. At the time of each rebalance of the Index, the companies included in the Index are weighted in proportion to their current market capitalization, and weightings are capped at 5% of the weight of the Index for any individual company. Weight above the 5% limitation is redistributed among the other Index constituents in proportion to their weights. As of April 30, 2022, the Index had a market capitalization range of $3.78 billion to $55.48 billion. The Index is reconstituted and rebalanced quarterly as of the close of business on the 3nd Friday of March, June, September, and December based on data as of the 2nd Friday of the applicable rebalance month.

 

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Pacer Funds

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -1.98%. The Index had a total return of -1.78%. The S&P 900 Pure Growth Index had a total return of -12.41%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 56.32%, Financials at 38.90%, and Materials 23.18%. The three sectors with the lowest contribution to performance were Communication Services at -32.69%, Consumer Discretionary at -14.70%, and Health Care at -12.08%. Sector performance numbers reflect their total return during the period.

 

Pacer Cash Cows Fund of Funds ETF

 

The Pacer Cash Cows Fund of Funds ETF (the “Fund”) is an exchange traded fund (“ETF”) that seeks to track the total return performance, before fees and expenses, of the Pacer Cash Cows Fund of Funds Index (the “Index” or the “Fund of Funds Index”).

 

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, an affiliate of Pacer Advisors, Inc., the Fund’s investment adviser (the “Adviser”). The Fund of Funds Index uses an objective, rules-based approach to construct a portfolio that, as of each quarterly rebalance, is composed of the ETFs listed in the following table, each advised by the Adviser (collectively, the “Cash Cows ETFs”). Each of the Cash Cows ETFs is an index-based ETF that seeks to track the total return performance, before fees and expenses, of the applicable underlying index listed in the following table (collectively, the “Cash Cows Indexes”). Each Cash Cows Index uses an objective, rules-based methodology to provide exposure to companies with high free cash flow yields (commonly referred to as “cash cows”) selected from the applicable “Equity Universe” as indicated in the following table.

 

Weight

Cash Cows ETF

Cash Cows Index

Equity Universe

20%

Pacer US Cash Cows 100 ETF

Pacer US Cash Cows 100 Index

Russell 1000 Index

20%

Pacer Global Cash Cows Dividend ETF

Pacer Global Cash Cows Dividend Index

FTSE Developed Large Cap Index

20%

Pacer US Small Cap Cash Cows 100 ETF

Pacer US Small Cap Cash Cows Index

S&P Small Cap 600® Index

20%

Pacer US Cash Cows Growth ETF

Pacer US Cash Cows Growth Index

S&P 900® Pure Growth Index

20%

Pacer Developed Markets International
Cash Cows 100 ETF

Pacer Developed Markets International
Cash Cows 100 Index

FTSE Developed ex US Index

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of 2.29%. The Index had a total return of 3.12%. The FTSE All-World Developed Index had a total return of -4.18%

 

The Fund’s top contributor to its return was Pacer US Cash Cows 100 ETF at 16.08%. The Fund’s bottom contributor to its return was Pacer US Small Cap Cash Cows 100 ETF at -6.57%.

 

The Pacer Custom ETF Series

 

The Pacer Custom ETFs are strategy-driven, rules-based and are each designed to offer a specific investment focus. The period referenced in this section for all custom funds is for the fiscal year end of April 30, 2022.

 

Pacer WealthShield ETF

 

The Pacer WealthShield ETF (the “Fund”) seeks to track the total performance, before fees and expenses, of the Pacer WealthShield Index (the “Index”).

 

The Index uses an objective, rules-based methodology to implement a trend-following strategy that directs some or all of the Index’s 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.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -5.30%. The Index had a total return of -5.40%. The S&P 500 Index had a total return of 0.21%. Throughout the fiscal year, the Fund went “risk on” from April 2021 to the end of January 2022, and “risk off” from February 2022 to the end of March, 2022. The Fund finished the fiscal year in April 2022, “risk on.”

 

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Pacer Funds

 

Pacer CSOP FTSE China A50 ETF

 

The Pacer CSOP FTSE China A50 ETF (the “Fund”) is an exchange traded fund (“ETF”) that seeks to provide investment results that, before fees and expenses, track the performance for the FTSE China A50 Net Total Return Index (the “Index.”)

 

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 comprised of A-Shares issued by the 50 largest companies in the China A-Shares market. The Index is a net total return index, which means that the performance of the Index assumes that dividends paid by the Index constituents, net of any withholding taxes, are reinvested in additional shares of such Index constituents. The Index is a free float-adjusted market capitalization-weighted index compiled and published by FTSE International Limited (“FTSE” or the “Index Provider”), which is not affiliated with the Fund, Pacer Advisors, Inc. (the “Adviser”), CSOP Asset Management Limited (the “Sub-Adviser”), or the Fund’s distributor. The Index is a real-time, tradable index comprising the largest 50 China A-Share companies by full market capitalization of the FTSE China AAll Cap Free Index. The Index is a subset of the FTSE China AAll Cap Free Index, FTSE’s most comprehensive benchmark for the Chinese A-Share market. It is denominated and quoted in Chinese Yuan (“CNY”) and comprised of stocks listed on the Shanghai Stock and Shenzhen Stock Exchange main markets, the Shenzhen SME Board and/or the Shenzhen ChiNext Board. The Index Provider determines the composition of the Index and relative weightings of the Index constituents based on the Index’s methodology, and publishes information regarding the market value of the Index.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -22.15%. The FTSE China A50 Index had a total return of -22.09%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 0.49%, Utilities at 0.12%, and Real Estate at -0.63%. The three sectors with the lowest contribution to performance were Health Care at -3.67%, Consumer Staples at -5.28%, and Financials at -6.51%. Sector performance numbers reflect their total return during the period.

 

Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF

 

The Pacer Benchmark Data & Infrastructure Real Estate SCTR℠ ETF (the “Fund”) is an exchange traded fund that seeks to track the total return performance, before fees and expenses, of the Kelly Data Center and Tech Infrastructure Index (the “Index”), formerly the Benchmark Data & Infrastructure Real Estate SCTR Index.

 

The Index is generally composed of the U.S.-listed equity securities of companies that derive at least 85% of their earnings or revenues from real estate operations in the data and infrastructure real estate sectors (“Eligible Companies”). At the time of each reconstitution of the Index, Eligible Companies with a market capitalization of more than $200 million and average daily traded volume of at least 10,000 shares are included in the Index (the “Index Constituents”). A significant portion of the Index is expected to be composed of real estate investment trusts (“REITs”). The real estate companies included in the Index may utilize leverage, and some may be highly leveraged. Additionally, such companies may include significant business operations outside of the United States.

 

The Index is reconstituted and rebalanced quarterly as of the close of business on the third Friday of each March, June, September, and December based on data as of the end of the previous month (each, a “Reference Date”). Index Constituents are weighted based on their free-float market capitalization (i.e., market capitalization based on the number of shares available to the public), subject to the following constraints as of the time of each reconstitution of the Index. Each Index Constituent’s weight is capped at 15% and the sum of Index Constituents with weights greater than 4.5% cannot exceed 45% of the total Index weight. If the foregoing limits would be exceeded at the time of a reconstitution of the Index, the excess weight is proportionally redistributed to all Index Constituents with weights below such limits.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -1.63%. The Index had a total return of -0.99%. The FTSE NAREIT All Equity REITS Index had a total return of 10.15%.

 

The Fund’s top three contributors to its return were Switch, Inc. Clas A at 62.21%, CoreSite Realty Corporation at 43.41%, and Iron Mountain at 41.13%. The Fund’s bottom three contributors to its return were Chindata Group Holdings Limited at –52.69%, GDS Holdings Ltd. at -62.13%, and VNET Group, Inc at –78.61%. Performance numbers reflect their total return during the period.

 

Pacer Benchmark Industrial Real Estate SCTR ETF

 

The Pacer Benchmark Industrial Real Estate SCTR℠ ETF (the “Fund”) is an exchange traded fund that seeks to track the total return performance, before fees and expenses, of the Kelly Benchmark Indexes (the “Index”), formerly Benchmark Investments, LLC.

 

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Pacer Funds

 

The Index is generally composed of the U.S.-listed equity securities of companies that derive at least 85% of their earnings or revenues from real estate operations in the industrial real estate sector (“Industrial Companies”), including companies that derivate at least 85% of their earnings or revenues from self-storage real estate operations (“Self-Storage Companies”). At the time of each reconstitution of the Index, Industrial Companies with a market capitalization of more than $200 million and average daily traded volume of at least 10,000 shares are included in the Index (the “Index Constituents”). A significant portion of the Index is expected to be composed of real estate investment trusts (“REITs”). The real estate companies included in the Index may utilize leverage, and some may be highly leveraged. Additionally, such companies may include significant business operations outside of the United States.

 

The Index is reconstituted and rebalanced quarterly as of the close of business on the third Friday of each March, June, September, and December based on data as of the end of the previous month (each, a “Reference Date”). Index Constituents are weighted based on their free-float market capitalization (i.e., market capitalization based on the number of shares available to the public), subject to the following constraints as of the time of each reconstitution of the Index. The sum of all Industrial Companies that are not Self-Storage Companies cannot exceed 80% of the total Index weight, and the remaining weight will be composed of Self-Storage Companies. Additionally, each Index Constituent’s weight is capped at 15% and the sum of Index Constituents with weights greater than 4.5% cannot exceed 45% of the total Index weight. If the foregoing limits would be exceeded at the time of a reconstitution of the Index, the excess weight is proportionally redistributed to all Index Constituents with weights below such limits.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of 14.88%. The Index had a total return of 15.72%. The FTSE NAREIT All Equity REITS Index had a total return of 10.15%.

 

The Fund’s top three contributors to its return were Rexford Industrial Realty, Inc. at 42.67%, Life Storage, Inc. at 41.79%, and Prologis, Inc. at 40.16%. The Fund’s bottom three contributors to its return were Innovative Industrial Properties Inc. at -18.81%, Industrial Logistics Properties Trust at -31.15%, and Americold at -32.85%. Performance numbers reflect their total return during the period.

 

Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF

 

The Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF (the “Fund”) is an exchange traded fund (“ETF”) that seeks to track the total return performance, before fees and expenses, of the Pacer CFRA-Stovall Equal Weight Seasonal Rotation Index (the “Index”).

 

The Index uses an objective, rules-based methodology to track the performance of a semi-annual rotation of certain sectors within the S&P 500 Equal Weight Index (“EWI”). The S&P 500 EWI is an equal-weighted version of the S&P 500®, which measures the performance of the large-cap segment of the U.S. equity market. The S&P 500 EWI includes stocks covering all 11 Global Industry Classification Standard (“GICS®”) sectors, six of which are eligible for inclusion in the Index.

 

On the last business day of each April, the Index is equally weighted in the S&P 500 EWI Consumer Staples and Healthcare sectors. The Index holdings then float until the last business day of the following October, when the Index is reconstituted and rebalanced to an equal weighting in the S&P 500 EWI Consumer Discretionary, Industrials, Information Technology, and Materials sectors. The Index holdings then float until the last business day of the following April (the next calendar year), when the Index is reconstituted and rebalanced back to an equal weighting in the S&P 500 EWI Consumer Staples and Healthcare sectors.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -5.11%. The Index had a total return of -4.37%. The S&P 500 Index had a total return of 0.21%.

 

During the fiscal year, the top three sectors for contribution to performance were Financials at 10.27%, Health Care at 9.68%, and Materials at 8.57%. The three sectors with the lowest contribution to performance were Industrials at -7.72%, Information Technology at -15.29%, and Consumer Discretionary at -16.48. Sector performance numbers reflect their total return during the period.

 

The Pacer Leaders ETF Series

 

The Pacer Leaders ETFs are strategy-driven, rules-based and are each designed to offer exposure to leaders in specific themes. The period referenced in this section for all custom funds is for the fiscal year end of April 30, 2022.

 

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Pacer Funds

 

Pacer US Export Leaders ETF

 

The Pacer US Export Leaders ETF (the “Fund”) is an exchange traded fund that seeks to track the total return performance, before fees and expenses, of the Pacer US Export Leaders Index (the “Index”).

 

The Index uses an objective, rules-based methodology to measure the performance of an equal weight portfolio of approximately 100 large- and mid-capitalization U.S. companies with a high percentage of foreign sales and high free cash flow growth. Free cash flow is a company’s cash flow from operations minus its capital expenditures. Construction of the Index begins with an initial universe of the 200 companies across the S&P 900® Index (which is comprised of the S&P 500® Index (“S&P 500”) and S&P MidCap 400® Index (“S&P MidCap 400”)) that have the highest annual foreign sales as a percentage of total sales. The 200 companies are then narrowed to the 100 companies with the highest change in free cash flow growth over the past five years, and those 100 companies are equally weighted to create the Index. The Index is reconstituted and rebalanced to equal-weight quarterly. From time to time, the Index may include more or less than 100 companies as a result of events such as acquisitions, spin-offs and other corporate actions. The S&P 500 consists of approximately 500 leading U.S.-listed companies representing approximately 80% of the U.S. equity market capitalization. The S&P MidCap 400 measures the performance of mid-capitalization stocks in the United States.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -5.00%. The Index had a total return of -4.49%. The S&P 900 Index had a total return of -24.00%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 70.45%, Real Estate at 14.79%, and Consumer Staples at 12.90%. The three sectors with the lowest contribution to performance were Health Care at -15.742%, Financials at -17.87%, and Communication Services at -33.68%. Sector performance numbers reflect their total return during the period.

 

Pacer BioThreat Strategy ETF

 

The Pacer BioThreat Strategy ETF (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 by LifeSci Index Partners, LLC, the Fund’s Index Provider (the “Index Provider”), which is not affiliated with the Fund, its distributor, or Pacer Advisors, Inc., the Fund’s investment adviser (the “Adviser”). The Index is generally composed of U.S.-listed stocks of companies whose products or services help protect against, endure, or recover from biological threats to human health. Companies helping to protect against such threats include those that conduct research to identify or anticipate such threats and those developing or producing the tools necessary to detect them. Companies helping to endure biological threats include those offering goods or services to help individuals, organizations, businesses, and governments adapt to requirements for social distancing or remote connectivity. Such companies may reflect a variety of industries, ranging from the provision of consumer staples that may be stockpiled in an emergency to critical healthcare supplies to basic energy resources. Companies helping to recover from a biological threat include those that support the treatment of diseases or responses to chemical or biological attacks. The Index selects companies based on a proprietary, multi-step research process. First, the Index Provider conducts fundamental research to identify the most important current and emerging biological threats to human health. Such threats may include pandemic diseases, biological warfare, food and water safety, environmental safety, and natural disasters. Next, the Index Provider utilizes publicly available information such as financial reports and screens, corporate websites, news reports, and interviews with key opinion leaders to identify publicly traded companies which protect against and prepare for recovering from these threats. These companies have products, technologies, and services that seek to: ● research or combat pandemic diseases such as the novel coronavirus (COVID-19), Zika, H1N1, Ebola, avian flu, and MERS; ● combat agents of biological or chemical warfare such as anthrax, sarin gas, variola virus, and brucellosis; ● detect the presence of biological or chemical threats; ● enable social distancing and increased productivity for working and shopping at home; ● secure national borders and ports and strengthen homeland security; ● aid in stockpiling of products in times of natural disasters and disease outbreaks, such as canned foods, power sources, consumer first aid kits, anti-microbial agents, gas masks, and sterilization supplies and services; and ● test and improve food and water safety and purity. Finally, the Index Provider only includes those companies with a minimum market capitalization of $1 billion and a minimum average daily value traded for the last six months of at least $2 million. Index components are weighted based on their market capitalization, subject to a maximum weight of 4.9% at the time of rebalance. The Index is reconstituted (i.e., components are added or removed and weights are reset based on the Index methodology) on the third Friday of each January and rebalanced (i.e., weights are reset based on the Index methodology, but no components are added or removed) semi-annually as of the close of business on the third Friday of each January and July. The weights are fixed as of closing prices on the second Friday in each January and July. As of April 30, 2022, the Index was made up of 50 companies and included significant allocations to companies in the health care and industrial sectors.

 

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Pacer Funds

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -4.41%. The Index had a total return of -3.68%. The S&P 500 Index had a total return of 0.21%.

 

During the fiscal year, the top three sectors for contribution to performance were Consumer Staples at 8.11%, Health Care at 5.13%, and Telecommunication Services at -4.39%. The three sectors with the lowest contribution to performance were Industrials at -23.33%, Materials at -23.63%, and Communication Services at -62.93%. Sector performance numbers reflect their total return during the period.

 

The Pacer Factor ETF Series

 

The Pacer Factor ETFs invest in equities based on certain shared characteristics (factors) and seeks to outperform the market over time. Three of these funds, the Pacer Lunt funds, have the ability to rotate their factor exposures on a monthly basis based on certain signals in an effort to realize greater returns than the overall market. The period referenced in this section for all factor funds is for the fiscal year end of April 30, 2022.

 

Pacer Lunt Large Cap Alternator ETF

 

The Pacer Lunt Large Cap Alternator ETF (the “Fund”) employs a “passive management” (or indexing) investment approach designed to track the total return performance, before fees and expenses, of the Lunt Capital U.S. Large Cap Rotation Index (the “Index”).

 

The Index is based on a proprietary methodology developed by Lunt Capital Management, Inc. (“Lunt Capital” or the “Index Provider”). The Index uses an objective, rules-based methodology to provide exposure to large-capitalization U.S. companies. The Index uses Lunt Capital’s proprietary relative strength methodology to rotate between the holdings of one of two sub-indices, the S&P 500 Low Volatility Index and the S&P 500 High Beta Index (each, a “Sub-Index,” and together, the “Sub-Indices”), that seek to identify the 100 components of the S&P 500 Index that most strongly exhibit a particular trait (e.g., low volatility or high beta). Each Sub-Index is composed of the 100 securities comprising the S&P 500 Index that most strongly exhibit the characteristic screened for by the Sub-Index. The S&P 500 is a free-float weighted index that measures the performance of the large-cap segment of the U.S. equity market. The S&P500 includes approximately 500 leading companies and captures approximately 80% of the U.S. market capitalization. Accordingly, each Sub-Index is composed of large-capitalization equity 4 securities. S&P Opco LLC (a subsidiary of S&P Dow Jones Indices, LLC) compiles, maintains, and calculates the S&P 500 Index and the Sub-Indices. The S&P 500 Low Volatility Index is composed of the 100 securities comprising the S&P 500 Index that have exhibited the lowest realized volatility over the prior 12 months. Each stock comprising the S&P 500 Low Volatility Index is weighted by the inverse of its volatility with the least volatile stocks receiving the highest weights. Volatility is a statistical measurement of the magnitude of price fluctuations in a stock’s price over time. The S&P 500 High Beta Index is composed of the 100 securities comprising the S&P 500 Index that have exhibited the highest sensitivity to market movements, or “beta,” over the prior 12 months. The weight of each stock in the S&P 500 High Beta Index is proportionate to its beta, rather than to its market capitalization. Beta is a measure of relative risk and is the rate of change of a security’s price. The Index utilizes Lunt Capital’s proprietary relative strength analysis in its attempt to determine which Sub-Index is likely to exhibit better price performance than the other Sub-Index. Pursuant to this methodology, the Index Provider calculates the “Risk Adjusted Score” for each Sub-Index. Each Sub-Index’s “Risk-Adjusted Score” is calculated using the Sub-Index’s standard deviation of returns over the prior 12 months. On the final trading day of each month, the Index Provider computes the relative strength of each Sub-Index by comparing each Sub-Index’s Risk-Adjusted Score. The Index Provider considers the Sub-Index with the higher Risk-Adjusted Score to have the higher relative strength. The Index is composed of the securities comprising the Sub-Index demonstrating the greater relative strength. The Index is reconstituted and rebalanced monthly, except when the Index methodology would not result in a change in the Sub-Index comprising the Index at such time.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of 6.97%. The Index had a total return of 7.80%. The S&P 500 Index had a total return of 0.21%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 49.49%, Materials at 34.30%, and Health Care at 11.66%. The three sectors with the lowest contribution to performance were Information Technology at -4.65%, Industrials at -5.33%, Utilities at -7.00%. Sector performance numbers reflect their total return during the period.

 

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Pacer Funds

 

Pacer Lunt Midcap Multi-Factor Alternator ETF

 

The Pacer Lunt Midcap Multi-Factor Alternator ETF (the “Fund”) employs a “passive management” (or indexing) investment approach designed to track the total return performance, before fees and expenses, of the Lunt Capital U.S. MidCap Multi-Factor Rotation Index (the “Index”).

 

The Index is based on a proprietary methodology developed by Lunt Capital Management, Inc. (“Lunt Capital” or the “Index Provider”). The Index uses an objective, rules-based methodology to provide exposure to mid-capitalization U.S. companies. The Index uses Lunt Capital’s proprietary relative strength methodology to rotate between the holdings of the highest and lowest quintile components of four factor-based indices of the S&P MidCap 400 Index (each, a “Sub-Index,” and together, the “Sub-Indices”), that seek to identify the components of the S&P MidCap 400 Index that most strongly exhibit a particular factor. The four factor groups are Momentum, Quality, Value, and Volatility. 9 The Index will include holdings for two of the following eight Sub-Indices: Momentum Quality Value Volatility Highest Quintile S&P MidCap 400 Momentum Index S&P MidCap 400 Quality Index S&P MidCap 400 Enhanced Value Index S&P MidCap 400 Volatility - Highest Quintile Index Lowest Quintile S&P MidCap 400 Momentum - Lowest Quintile Index S&P MidCap 400 Quality - Lowest Quintile Index S&P MidCap 400 Enhanced Value - Lowest Quintile Index S&P MidCap 400 Low Volatility Index Each Sub-Index is composed of the 80 securities (a quintile) comprising the S&P MidCap 400 Index that most strongly exhibit the characteristic screened for by the Sub-Index. The S&P MidCap 400 Index is a market-weighted index and measures the performance of mid-capitalization stocks in the United States. S&P Opco LLC (a subsidiary of S&P Dow Jones Indices, LLC) compiles, maintains, and calculates the S&P MidCap 400 Index and the Sub-Indices. The Index utilizes Lunt Capital’s proprietary relative strength analysis in its attempt to determine which two Sub-Indices are likely to exhibit better price performance than the other Sub-Indices. Pursuant to this methodology, the Index Provider calculates the “Risk Adjusted Score” for each Sub-Index. On the final trading day of each month, the Index Provider computes the relative strength of each Sub-Index by comparing each Sub-Index’s Risk-Adjusted Score. The Index Provider considers a higher Risk-Adjusted Score to indicate greater relative strength. The Index is composed of the securities comprising the two Sub-Indices demonstrating the greatest relative strength unless such Sub-Indices include both the highest and lowest quintile from the same factor group, in which case only the Sub-Indices with the highest and third-highest Risk-Adjusted Score would be selected. The Index is reconstituted and rebalanced monthly, except when the Index methodology would not result in a change in the Sub-Indices comprising the Index at such time.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -12.66%. The Index had a total return of -12.41%. The S&P MidCap 400 Index had a total return of -7.03%.

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 32.42%, Materials at 20.15%, and Utilities at 5.74%. The three sectors with the lowest contribution to performance were Consumer Staples at -23.45%, Information Technology at -27.16%, and Consumer Discretionary at -29.92%. Sector performance numbers reflect their total return during the period.

 

Pacer Lunt Large Cap Multi-Factor Alternator ETF

 

The Pacer Lunt Large Cap Multi-Factor Alternator ETF (the “Fund”) employs a “passive management” (or indexing) investment approach designed to track the total return performance, before fees and expenses, of the Lunt Capital U.S. Large Cap Multi-Factor Rotation Index (the “Index”). The Index is based on a proprietary methodology developed by Lunt Capital Management, Inc. (“Lunt Capital” or the “Index Provider”). The Index uses an objective, rules-based methodology to provide exposure to large-capitalization U.S. companies. The Index uses Lunt Capital’s proprietary relative strength methodology to rotate between the holdings of the highest and lowest quintile components of four factor-based indices of the S&P 500 Index (each, a “Sub-Index,” and together, the “Sub-Indices”), that seek to identify the components of the S&P 500 Index that most strongly exhibit a particular factor. The four factor groups are Momentum, Quality, Value, and Volatility. 14 The Index will include holdings for two of the following eight Sub-Indices: Momentum Quality Value Volatility Highest Quintile S&P 500 Momentum Index S&P 500 Quality Index S&P 500 Enhanced Value Index S&P 500 Volatility - Highest Quintile Index Lowest Quintile S&P 500 Momentum - Lowest Quintile Index S&P 500 Quality - Lowest Quintile Index S&P 500 Enhanced Value - Lowest Quintile Index S&P 500 Low Volatility Index Each Sub-Index is composed of the 100 securities (a quintile) comprising the S&P 500 Index that most strongly exhibit the characteristic screened for by the Sub-Index. The S&P 500 is a free-float weighted index that measures the performance of the large-cap segment of the U.S. equity market. The S&P 500 includes approximately 500 leading companies and captures approximately 80% of the U.S. market capitalization. S&P Opco LLC (a subsidiary of S&P Dow Jones Indices, LLC) compiles, maintains, and calculates the S&P 500 Index and the Sub-Indices. The Index utilizes Lunt Capital’s proprietary relative strength analysis in its attempt to determine which two Sub-Indices are likely to exhibit better price performance than the other Sub-Indices. Pursuant to this methodology, the Index Provider calculates the “Risk Adjusted Score” for each Sub-Index. On the final trading day of each month, the Index Provider computes the relative strength of each Sub-Index by comparing each Sub-Index’s Risk-Adjusted Score. The Index Provider considers a higher Risk-Adjusted Score to indicate greater relative strength. The Index is composed of the securities comprising the two Sub-Indices demonstrating the greatest relative

 

15

 

 

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strength unless such Sub-Indices include both the highest and lowest quintile from the same factor group, in which case only the Sub-Indices with the highest and third-highest Risk-Adjusted Score would be selected. The Index is reconstituted and rebalanced monthly, except when the Index methodology would not result in a change in the Sub-Indices comprising the Index at such time. The Fund’s Investment Strategy Under normal circumstances, at least 80% of the Fund’s total assets (exclusive of collateral held from securities lending) will be invested in the component securities of the Fund’s underlying Index or in one or more ETFs that track the performance of all or a portion of such component securities in the same approximate proportion as in the Fund’s underlying Index. The Fund’s investment adviser expects that, over time, the correlation between the Fund’s 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. The Fund is considered to be non-diversified, which means that it may invest more of its assets in the securities of a single issuer or a smaller number of issuers than if it were a diversified fund.

 

The Fund

 

As of the fiscal year end, the Fund had a NAV total return of -2.58%. The Index had a total return of -1.72%. The S&P 500 Index had a total return of 0.21%

 

During the fiscal year, the top three sectors for contribution to performance were Energy at 76.54%, Consumer Staples at 20.02%, and Real Estate at 6.10%. The three sectors with the lowest contribution to performance were Industrials at -9.56%, Communication Services at -14.73%, and Consumer Discretionary at -17.50%. Sector performance numbers reflect their total return during the period.

 

The performance data quoted is historical. Past performance is no guarantee of future results. You cannot invest directly in an index.

 

Pacer Pacific Asset Floating Rate High Income ETF

 

Pacific Asset Management LLC (the “Sub-Adviser”) seeks to achieve the Fund’s investment objective by selecting a focused portfolio comprised primarily of income-producing adjustable rate securities. Under normal circumstances, the Fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in senior secured floating rate loans and other adjustable rate securities. Other adjustable rate securities will typically include collateralized loan obligations (“CLOs”), asset-backed securities (“ABS”), and commercial mortgage backed securities (“CMBS”) (collectively, “Adjustable Rate Securities”). The Fund is expected to invest primarily in loans and Adjustable Rate Securities that are rated below investment grade (i.e., high yield securities, sometimes called “junk bonds” or non-investment grade securities) or, if unrated, of comparable quality as determined by the Sub-Adviser. The Fund may invest in U.S.-dollar denominated senior floating rate loans and Adjustable Rate Securities of domestic and foreign issuers. Senior floating rate loans are debt instruments that may have a right to payment that is senior to most other debts of borrowers. Borrowers may include corporations, partnerships and other entities that operate in a variety of industries and geographic regions, which may from time to time prepay their loan obligations in response, for example, to changes in interest rates. Senior loans in which the Fund may invest include secured and unsecured loans. Generally, secured floating rate loans are secured by specific assets of the borrower. An adjustable rate security includes any fixed income security that requires periodic changes in its interest rate based upon changes in a recognized index interest rate or another method of determining prevailing interest rates. The Fund invests in various types of ABS, such as auto loan and student loan ABS. The Fund is actively managed. The Fund may invest up to 20% of its assets in certain other types of debt instruments or securities, including corporate bonds (including floating rate investment grade bonds) and secured or unsecured second lien floating rate loans. Second lien loans generally are second in line behind senior loans in terms of prepayment priority with respect to pledged collateral and therefore have a lower credit quality as compared to senior loans but may produce a higher yield to compensate for the additional risk. The secondary market on which high yield securities are traded may be less liquid than the market for investmentgrade securities. Less liquidity in the secondary trading market could adversely affect the ability of the Fund to sell a high yield security or the price at which the Fund could sell a high yield security, and could adversely affect the daily NAV of Fund shares. When secondary markets for high yield securities are less liquid than the market for investment-grade securities, it may be more difficult to value the securities because such valuation may require more research, and elements of judgment may play a greater role in the valuation because there is less reliable, objective data available. The Fund may invest up to an aggregate amount of 15% of its net assets in illiquid investments, as such term is defined by Rule 22e-4 under the Investment Company Act of 1940, as amended (the “1940 Act”). When the Sub-Adviser believes that current market, economic, political or other conditions are unsuitable and would impair the pursuit of the Fund’s investment objectives, the Fund may invest some or all of its assets in cash or cash equivalents, including but not limited to obligations of the U.S. government, money market fund shares, commercial paper, certificates of deposit and/or bankers acceptances, as well as other interest bearing or discount obligations or debt instruments that carry an investment grade rating by a national rating agency. When the Fund takes a temporary defensive position, the Fund may not achieve its investment objectives. The Fund may invest from time to time more heavily in one or more sectors of the economy than in other sectors.

 

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The Fund

 

As of the fiscal year end, the Fund had a NAV total return of 1.02%. The S&P/LSTA Leveraged Loan Total Return Index had a total return of 1.72%.

 

Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF

 

The Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF (the “Fund”) employs a “passive management” (or indexing) investment approach designed to track the total return performance, before fees and expenses, of the Metaurus US Large Cap Dividend Multiplier Index - Series 400 (the “Index”). The Index is based on a proprietary methodology developed by Metaurus Advisors LLC (“Metaurus”), the Fund’s sub-adviser and the Fund’s index provider. All or a portion of the methodologies and algorithms used to calculate the Index are covered by one or more granted or pending U.S. patents owned by Metaurus

 

The Index, as designed, has two components: (i) an S&P 500 Index component (the “S&P 500 Component”) and (ii) a dividend component (the “Dividend Component”) consisting of long positions in annual futures contracts that provide exposure to ordinary dividends paid on the common stocks of companies included in the S&P 500 (“S&P Dividend Futures”). The S&P 500 Index consists of approximately 500 leading U.S.-listed companies representing approximately 80% of the U.S. equity market capitalization. The Dividend Component is designed to give the Fund exposure to approximately 400% of the ordinary dividends the Fund would otherwise have expected to receive from its investment in the S&P 500 Component. The Dividend Component consists of annual futures contracts whose value represents the market’s expectation of the amount of ordinary dividends to be paid by S&P 500 companies during the term of the futures contract. As of April 30, 2022, the S&P 500 Component comprised approximately 78% of the Index. S&P Dividend Futures seek to allow investors in these instruments to obtain exposure to the actual dividend value that will be paid by the S&P 500 constituent companies over a period of time. The amount of such futures contracts will generally result in exposure to such dividends that is significantly greater than the amount of dividends that the Fund would normally receive from its direct investment in S&P 500 constituent companies (i.e., approximately 400% of such dividends that the Fund would normally have received). S&P Dividend Futures provide for the future sale by one party and purchase by another party of a specified dividend value of the S&P 500 at a specified future time and at a specified price. S&P Dividend Futures are standardized contracts traded on a recognized exchange. The Fund’s investment in S&P Dividend Futures will generally include the three most current annual S&P Dividend Futures contracts (e.g., in April 2022, the Fund would invest in the 2022, 2023, and 2024 contracts. The Index is typically rebalanced each December, at the end of the trading day on which the current year’s S&P Dividend Futures expire. At each rebalancing date, the current year’s annual S&P Dividend Futures will be replaced by the then closest maturing contract in three years. On each Index rebalancing date, the composition of the Index is expected to change.

 

The Fund

 

The Fund’s inception date was July 12, 2021. As of the fiscal year end, the Fund had a NAV total return of -5.00%. The Index had a total return of -4.28%. The S&P 500 Index had a total return of -4.73%.

 

During the fiscal period, the top three sectors for contribution to performance were Energy at 49.53%, Consumer Staples at 14.40%, and Utilities at 13.24%. The three sectors with the lowest contribution to performance were Information Technology at -6.49%, Consumer Discretionary at -12.95%, and Communication Services at -26.34%. Sector performance numbers reflect their total return during the period.

 

Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF

 

The Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF (the “Fund”) employs a “passive management” (or indexing) investment approach designed to track the total return performance, before fees and expenses, of the Metaurus US Large Cap Dividend Multiplier Index - Series 300 (the “Index”). The Index is based on a proprietary methodology developed by Metaurus Advisors LLC (“Metaurus”), the Fund’s sub-adviser and the Fund’s index provider. All or a portion of the methodologies and algorithms used to calculate the Index are covered by one or more granted or pending U.S. patents owned by Metaurus.

 

The Index, as designed, has two components: (i) an S&P 500 Index component (the “S&P 500 Component”) and (ii) a dividend component (the “Dividend Component”) consisting of long positions in annual futures contracts that provide exposure to ordinary dividends paid on the common stocks of companies included in the S&P 500 (“S&P Dividend Futures”). The S&P 500 Index consists of approximately 500 leading U.S.-listed companies representing approximately 80% of the U.S. equity market capitalization. The Dividend Component is designed to give the Fund exposure to approximately 300% of the ordinary dividends the Fund would otherwise have expected to receive from its investment in the S&P 500 Component. The Dividend Component consists of annual futures contracts whose value represents the market’s expectation of the amount of ordinary dividends to be paid by S&P 500 companies during the term of the futures contract. As of April 30, 2022, the S&P 500 Component comprised approximately 88% of the Index. S&P Dividend Futures seek to allow investors in these instruments to obtain exposure to the actual dividend value that will be paid by the S&P 500 constituent companies over a period of

 

17

 

 

Pacer Funds

 

time. The amount of such futures contracts will generally result in exposure to such dividends that is significantly greater than the amount of dividends that the Fund would normally receive from its direct investment in S&P 500 constituent companies (i.e., approximately 300% of such dividends that the Fund would normally have received). S&P Dividend Futures provide for the future sale by one party and purchase by another party of a specified dividend value of the S&P 500 at a specified future time and at a specified price. S&P Dividend Futures are standardized contracts traded on a recognized exchange. The Fund’s investment in S&P Dividend Futures will generally include the three most current annual S&P Dividend Futures contracts (e.g., in April 2022, the Fund would invest in the 2022, 2023, and 2024 contracts. The Index is typically rebalanced each December, at the end of the trading day on which the current year’s S&P Dividend Futures expire. At each rebalancing date, the current year’s annual S&P Dividend Futures will be replaced by the then closest maturing contract in three years. On each Index rebalancing date, the composition of the Index is expected to change.

 

The Fund

 

The Fund’s inception date was July 12, 2021. As of the fiscal year end, the Fund had a NAV total return of -5.21%. The Index had a total return of -4.44%. The S&P 500 Index had a total return of -4.73%.

 

During the fiscal period, the top three sectors for contribution to performance were Energy at 49.63%, Consumer Staples at 14.42%, and Utilities at 13.22%. The three sectors with the lowest contribution to performance were Information Technology at -6.51%, Consumer Discretionary at -12.90%, and Communication Services at -26.21%. Sector performance numbers reflect their total return during the period.

 

Before investing you should carefully consider a Fund’s investment objectives, risks, charges and expenses. This and other information is in the prospectus. A copy may be obtained by visiting www.paceretfs.com or calling 1-877-337-0500. Please read the prospectus carefully before investing.

 

An investment in the Funds is subject to investment risk, including the possible loss of principal. Pacer ETF shares may be bought and sold on an exchange through a brokerage account. Brokerage commissions and ETF expenses will reduce investment returns. There can be no assurance that an active trading market for ETF shares will be developed or maintained. The risks associated with these funds are detailed in the prospectus and could include factors such as alternator strategy risk, cash redemption risk, high yield risk, management risk, calculation methodology risk, concentration risk, currency exchange rate risk, emerging markets risk, equity market risk, ETF risks, European investments risk, fixed income risk, foreign sales risk, foreign securities risk, geographic concentration risk, government obligations risk, high portfolio turnover risk, index criteria risk, international operations risk, large and mid-capitalization investing risk, monthly exposure risk, new fund risk, non-diversification risk, other investment companies risk, passive investment risk, real estate companies risk, REIT investment risk, models and data risk, sector risk, sector rotation risk, smaller-capitalization companies risk, style risk, tax risk, tracking risk, trend lag risk, energy infrastructure industry risk, MLP risk, risk of investing in China, risk of investments in A-Shares, A-Shares tax risk, risk of investing through Shanghai-Hong Kong Stock Connect, risk of investing in Issuers listed on the ChiNext Board, authorized participant concentration risk, concentration risk, costs of buying or selling fund shares, emerging markets risk, equity securities risk, financial sector risk, index tracking error risk, international closed market trading risk, large-capitalization securities risk, market risk, non-U.S. currency risk, non-U.S. securities risk, passive investment risk, risk of cash transactions, secondary market trading risk, shares of the fund may trade at prices other than NAV, cybersecurity risk and/or special risks of exchange traded funds.

 

The Pacer Trendpilot® US Large Cap Index, Pacer Trendpilot® US Mid Cap Index, Pacer US Small Cap Cash Cows Index, Pacer US Export Leaders Index, Pacer WealthShield Index, Pacer Trendpilot® International Index, Pacer US Cash Cows Growth Index, Pacer Trendpilot® US Bond Index, and Pacer Trendpilot® Fund of Funds Index (the “Indices”) are the property of Index Design Group, LLC which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Indices. The Indices are not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Indices. “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Index Design Group, LLC. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“SPFS”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”).

 

The Pacer NASDAQ-100 Trendpilot® Index is co-owned by Index Design Group, LLC. and Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”). The NASDAQ-100 is a registered trademark of the Corporations and is licensed for use by Index Design Group, LLC. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. The Corporations make no warranties and bear no liability with respect to the product(s).

 

18

 

 

Pacer Funds

 

“FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and / or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without FTSE’s express written consent. FTSE does not promote, sponsor or endorse the content of this communication.

 

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and / or Russell ratings or underlying data and no party may rely on any Russell Indexes and / or Russell ratings and / or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication.

 

The Russell 1000 Index (the “Index”) is a trademark of Frank Russell Company (“Russell”) and has been licensed for use by Index Design Group, LLC (“IDG”). The Pacer US Cash Cows 100 Index is not in any way sponsored, endorsed, sold or promoted by Russell or the London Stock Exchange Group companies (“LSEG”) (together the “Licensor Parties”) and none of the Licensor Parties make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to (i) the results to be obtained from the use of the Index (upon which the Pacer US Cash Cows 100 Index is based), (ii) the figure at which the Index is said to stand at any particular time on any particular day or otherwise, or (iii) the suitability of the Index for the purpose to which it is being put in connection with the Pacer US Cash Cows 100 Index. None of the Licensor Parties have provided or will provide any financial or investment advice or recommendation in relation to the Index to IDG or to its clients. The Index is calculated by Russell or its agent. None of the Licensor Parties shall be (a) liable (whether in negligence or otherwise) to any person for any error in the Index or (b) under any obligation to advise any person of any error therein.

 

Kelly Data Center & Tech Infrastructure Index and Kelly Industrial Real Estate Index are trademarks of Benchmark Investments, LLC and have been licensed for use by Pacer Advisors, Inc. The Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF and Pacer Benchmark Industrial Real Estate SCTR ETF are not sponsored, endorsed, sold or promoted by Benchmarks Investments, LLC and Benchmark Investments, LLC makes no representation or warranty regarding the advisability of investing in this Pacer Benchmark Data & Infrastructure Real Estate SCTR ETF and Pacer Benchmark Industrial Real Estate SCTR ETF. On November 3, 2021, the index name of the Benchmark Data & Infrastructure Real Estate SCTR Index changed to the Kelly Data Center & Tech Infrastructure Index and the Benchmark Industrial Real Estate SCTR Index changed to the Kelly Industrial Real Estate Index. No changes were made to either index methodology.

 

Pacer Cash Cows Fund of Funds ETF is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade mark or the Index Price at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Indexes are calculated correctly. Irrespective of its obligations towards the Issuer, Solactive AG has no obligation to point out errors in the Indexes to third parties including but not limited to investors and/or financial intermediaries of the financial instrument. Neither publication of the Index by Solactive AG nor the licensing of the Indexes or Indexes trade mark for the purpose of use in connection with the financial instrument constitutes a recommendation by Solactive AG to invest capital in said financial instrument nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this financial instrument.

 

The Lunt Capital U.S. Large Cap Equity Rotation Index, Lunt Capital U.S. MidCap Multi-Factor Rotation Index, and Lunt Capital U.S. Large Cap Multi-Factor Rotation Index (the “Indices”) are a service mark of Lunt Capital Management, Inc. and have been licensed for use by Pacer Advisors, Inc. The Products are not sponsored, endorsed, sold, or promoted by Lunt Capital Management, Inc. and Lunt Capital Management, Inc. makes no representation regarding the advisability of investing in the Products. The Index is the property of Lunt Capital Management, Inc., which has contracted with S&P Opco, LLC (a subsidiary of S&P Dow Jones Indices LLC) to calculate and maintain the Indices. The Indices are not sponsored by S&P Dow Jones Indices or its affiliates or its third party licensors (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices will not be liable for any errors or omissions in calculating the Indices. “Calculated by S&P Dow Jones Indices” and the related stylized mark(s) are service marks of S&P Dow Jones Indices and have been licensed for use by Lunt Capital Management, Inc. S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (“SPFS”), and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”).

 

CFRA makes no representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing in securities generally, or in the Product particularly, or the ability of CFRA’s Index to track general market performance. CFRA is not responsible for and has not participated in the determination of the prices and amount of the Product or the timing of the issuance or sale of the Product or in the determination or calculation of the equation by which the product may be converted into cash or other redemption mechanics. CFRA has no obligation or liability in connection with the administration, marketing or trading of the Product. CFRA is not an investment advisor. Inclusion of a security within a CFRA Index is not a recommendation by CFRA to buy, sell,

 

19

 

 

or hold any security, nor is it investment advice. CFRA does not guarantee the adequacy, accuracy, timeliness and/or the completeness of the CFRA Index or any data related thereto or any communication with respect thereto, including oral, written, or electronic communications. CFRA shall not be subject to any damages or liability for any errors, omissions, or delays therein. CFRA makes no express or implied warranties, and expressly disclaims all warranties, of merchantability or fitness for a particular purpose or use or as to results to be obtained by users, owners of the product, or any other person or entity from the use of the CFRA Index or with respect to any data related thereto.

 

The LifeSci BioThreat Strategy Index is a trademark of LifeSci Index Partners, LLC (“LSIP”) and has been licensed for use by Pacer Advisors, Inc. The Pacer BioThreat Strategy ETF (CBOE: VIRS) is not sponsored, endorsed, sold or promoted by LifeSci Index Partners, LLC and LSIP makes no representation or warranty regarding the advisability of investing in the Pacer BioThreat ETF.

 

Pacer Advisors, Inc. is the fund advisor. Pacific Asset Management LLC serves as investment sub-advisor to the Pacer Pacific Asset Floating Rate High Income ETF (the “Fund”). The Fund is the successor to the Pacific Global Senior Loan ETF, a series of Pacific Global ETF Trust, and its investment performance as a result of the reorganization of the Predecessor Fund into the Fund at the close of business on October 22, 2021. In addition, the Pacific Global Senior Loan ETF was the successor to the investment performance of AdvisorShares Pacific Asset Enhanced Floating Rate ETF, a series of AdvisorShares Trust, as a result of the reorganization of the series of AdvisorShares Trust into a series of Pacific Global ETF that occurred on December 27, 2019 (together, the “Predecessor Fund”).

 

From the Predecessor Fund’s inception to October 22, 2021, the Predecessor Fund invested at least 80% of its net assets (plus any borrowings for investment purposes) in senior secured floating rate loans. After the reorganization, the Fund invests at least 80% of its net assets (plus any borrowings for investment purposes) in senior secured floating rate loans and other adjustable rate securities. Other than each Fund’s respective 80% policy and the associated risks with investing in adjustable rate securities, the Funds had similar investment objectives, strategies, and policies.

 

Investment products offered are: Not FDIC Insured ● No Bank Guarantee ● May Lose Value

 

Trendpilot®, Cash Cows Index® and Strategy Driven ETFs™ are trademarks of Index Design Group, LLC.

 

Distributor: Pacer Financial, Inc, member FINRA, SIPC, an affiliate of Pacer Advisors, Inc.

 

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Pacer Funds

PORTFOLIO ALLOCATION (Unaudited)
As of April 30, 2022

 

Pacer Trendpilot® US Large Cap ETF

 

Sector(a)

Percentage of
Net Assets

Short-Term Investments

64.6%

Investments Purchased with Proceeds from Securities Lending

0.5%

Other assets in excess of liabilities

34.9%

Total

100.0%

 

(a) The Fund may classify a company in a different category than the Pacer Trendpilot® US Large Cap Index.

 

Pacer Trendpilot® US Mid Cap ETF

 

Sector(a)

Percentage of
Net Assets

Short-Term Investments

100.0%

Other assets in excess of liabilities

0.0%*

Total

100.0%

 

* Less than 0.05%.
(a) The Fund may classify a company in a different category than the Pacer Trendpilot® US Mid Cap Index.

 

Pacer Trendpilot® 100 ETF

 

Sector(a)

Percentage of
Net Assets

Short-Term Investments

100.1%

Investments Purchased with Proceeds from Securities Lending

14.8%

Liabilities in excess of other assets

-14.9%

Total

100.0%

 

(a) The Fund may classify a company in a different category than the Pacer Nasdaq-100 Trendpilot® Index.

 

Pacer Trendpilot® European Index ETF

 

Sector(a)

Percentage of
Net Assets

Energy

0.1%

Short-Term Investments

99.1%

Liabilities in excess of other assets

0.8%

Total

100.0%

 

(a) The Fund may classify a company in a different category than the Pacer Trendpilot® European Index.

 

Pacer Trendpilot® International ETF

 

Sector(a)

Percentage of
Net Assets

Short-Term Investments

51.2%

Investments Purchased with Proceeds from Securities Lending

3.0%

Liabilities in excess of other assets

45.8%

Total

100.0%

 

(a) The Fund may classify a company in a different category than the Pacer Trendpilot® International Index.

 

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Pacer Funds

PORTFOLIO ALLOCATION (Unaudited) (Continued)
As of April 30, 2022

 

Pacer Trendpilot® US Bond ETF

 

Sector(a)

Percentage of
Net Assets

Consumer, Cyclical

20.0%

Communications

19.8%

Financial

11.5%

Consumer, Non-Cyclical

16.0%

Industrial

7.7%

Energy

12.2%

Basic Materials

5.3%

Technology

3.8%

Utilities

2.4%

Short-Term Investments

0.1%

Investments Purchased with Proceeds from Securities Lending

8.8%

Liabilities in excess of other assets

-7.6%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Pacer Trendpilot® US Bond Index.

 

Pacer Trendpilot® Fund of Funds ETF

 

Sector(a)

Percentage of
Net Assets

Affiliated Exchange Traded Funds

99.8%

Short-Term Investments

0.2%

Liabilities in excess of other assets

0.0%*

Total

100.0%

 

*

Less than 0.05%.

(a)

The Fund may classify a company in a different category than the Pacer Trendpilot® Fund of Funds Index.

 

Pacer Global Cash Cows Dividend ETF

 

Sector(a)

Percentage of
Net Assets

Consumer, Non-Cyclical

32.2%

Communications

14.1%

Energy

17.6%

Consumer, Cyclical

4.9%

Basic Materials

17.6%

Industrial

5.5%

Technology

3.5%

Utilities

2.9%

Diversified

0.9%

Short-Term Investments

0.5%

Investments Purchased with Proceeds from Securities Lending

15.1%

Liabilities in excess of other assets

-14.8%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Pacer Global Cash Cows Dividend 100 Index.

 

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Pacer Funds

PORTFOLIO ALLOCATION (Unaudited) (Continued)
As of April 30, 2022

 

Pacer US Cash Cows 100 ETF

 

Sector(a)

Percentage of
Net Assets

Consumer, Cyclical

13.9%

Consumer, Non-Cyclical

28.6%

Technology

8.2%

Communications

9.6%

Basic Materials

14.3%

Industrial

4.4%

Energy

16.9%

Financial

3.7%

Short-Term Investments

0.3%

Investments Purchased with Proceeds from Securities Lending

10.9%

Liabilities in excess of other assets

-10.8%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Pacer US Cash Cows 100 Index.

 

Pacer US Small Cap Cash Cows 100 ETF

 

Sector(a)

Percentage of
Net Assets

Consumer, Cyclical

51.4%

Consumer, Non-Cyclical

16.5%

Industrial

12.7%

Energy

6.2%

Communications

5.3%

Basic Materials

2.7%

Financial

2.5%

Technology

2.5%

Short-Term Investments

0.2%

Investments Purchased with Proceeds from Securities Lending

30.4%

Liabilities in excess of other assets

-30.4%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Pacer US Small Cap Cash Cows 100 Index.

 

Pacer Developed Markets International Cash Cows 100 ETF

 

Sector(a)

Percentage of
Net Assets

Consumer, Cyclical

21.1%

Communications

10.2%

Consumer, Non-Cyclical

11.9%

Industrial

19.1%

Basic Materials

17.2%

Energy

4.4%

Technology

14.0%

Utilities

0.9%

Short-Term Investments

0.5%

Investments Purchased with Proceeds from Securities Lending

10.7%

Liabilities in excess of other assets

-10.0%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Pacer Developed Markets International Cash Cows 100 Index.

 

23

 

 

Pacer Funds

PORTFOLIO ALLOCATION (Unaudited) (Continued)
As of April 30, 2022

 

Pacer US Cash Cows Growth ETF

 

Sector(a)

Percentage of
Net Assets

Technology

31.2%

Consumer, Non-cyclical

17.7%

Communications

11.3%

Consumer, Cyclical

19.2%

Industrial

5.6%

Basic Materials

4.3%

Energy

10.5%

Short-Term Investments

0.2%

Investments Purchased with Proceeds from Securities Lending

26.4%

Liabilities in excess of other assets

-26.4%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Pacer US Cash Cows Growth Index.

 

Pacer Emerging Markets Cash Cows 100 ETF

 

Sector(a)

Percentage of
Net Assets

Basic Materials

25.6%

Consumer, Cyclical

11.0%

Industrial

17.6%

Energy

18.2%

Consumer, Non-Cyclical

7.2%

Communications

9.3%

Utilities

2.5%

Technology

3.8%

Diversified

3.0%

Financial

0.6%

Short-Term Investments

0.5%

Investments Purchased with Proceeds from Securities Lending

3.8%

Other assets in excess of liabilities

-3.1%

Total

100.0%

 

Pacer Cash Cows Fund of Funds ETF

 

Sector(a)

Percentage of
Net Assets

Affiliated Exchange Traded Funds

99.9%

Short-Term Investments

0.1%

Liabilities in excess of other assets

0.0%*

Total

100.0%

 

*

Less than 0.05%.

(a)

The Fund may classify a company in a different category than the Pacer Cash Cows Fund of Funds Index.

 

24

 

 

Pacer Funds

PORTFOLIO ALLOCATION (Unaudited) (Continued)
As of April 30, 2022

 

Pacer WealthShield ETF

 

Sector(a)

Percentage of
Net Assets

Energy

20.1%

Utilities

19.8%

Financial

19.5%

Consumer, Non-cyclical

17.9%

Basic Materials

15.8%

Consumer, Cyclical

4.3%

Industrial

2.6%

Short-Term Investments

0.1%

Investments Purchased with Proceeds from Securities Lending

17.0%

Liabilities in excess of other assets

-17.1%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Pacer WealthShield Index.

 

Pacer Benchmark Industrial Real Estate SCTRSM ETF

 

Sector(a)

Percentage of
Net Assets

Financial

99.7%

Short-Term Investments

0.2%

Investments Purchased with Proceeds from Securities Lending

16.9%

Liabilities in excess of other assets

-16.8%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Kelly Industrial Real Estate Index.

 

Pacer Benchmark Data & Infrastructure Real Estate SCTRSM ETF

 

Sector(a)

Percentage of
Net Assets

Financial

76.7%

Communications

14.3%

Industrial

8.8%

Short-Term Investments

0.3%

Investments Purchased with Proceeds from Securities Lending

8.6%

Liabilities in excess of other assets

-8.7%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Kelly Data Center & Tech Infrastructure Index.

 

 

25

 

 

Pacer Funds

PORTFOLIO ALLOCATION (Unaudited) (Continued)
As of April 30, 2022

 

Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF

 

Sector(a)

Percentage of
Net Assets

Consumer, Non-Cyclical

93.2%

Consumer, Cyclical

4.3%

Industrial

1.5%

Technology

0.8%

Short-Term Investments

0.1%

Investments Purchased with Proceeds from Securities Lending

16.4%

Liabilities in excess of other assets

-16.3%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Pacer CFRA-Stovall Equal Weight Seasonal Rotation Index.

 

Pacer CSOP FTSE China A50 ETF    

 

Sector(a)

Percentage of
Net Assets

Consumer, Non-Cyclical

38.0%

Financial

26.9%

Consumer, Cyclical

14.6%

Industrial

6.5%

Energy

5.5%

Utilities

3.3%

Basic Materials

3.0%

Communications

1.8%

Short-Term Investments

0.3%

Other assets in excess of liabilities

0.1%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the FTSE China A50 Net Total Return Index.

 

Pacer BioThreat Strategy ETF

 

Sector(a)

Percentage of
Net Assets

Consumer, Non-Cyclical

62.0%

Consumer, Cyclical

16.4%

Communications

6.1%

Technology

6.6%

Industrial

6.9%

Basic Materials

1.9%

Short-Term Investments

0.1%

Investments Purchased with Proceeds from Securities Lending

31.2%

Liabilities in excess of other assets

-31.2%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the BioShares BioThreat Index.

 

26

 

 

Pacer Funds

PORTFOLIO ALLOCATION (Unaudited) (Continued)
As of April 30, 2022

 

Pacer Lunt Large Cap Alternator ETF

 

Sector(a)

Percentage of
Net Assets

Consumer, Non-cyclical

30.1%

Utilities

24.9%

Financial

17.7%

Industrial

13.3%

Consumer, Cyclical

5.9%

Communications

3.3%

Basic Materials

2.7%

Technology

2.0%

Short-Term Investments

0.1%

Investments Purchased with Proceeds from Securities Lending

5.2%

Liabilities in excess of other assets

-5.2%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Lunt Capital U.S. Large Cap Equity Rotation Index.

 

Pacer Lunt Midcap Multi-Factor Alternator ETF

 

Sector(a)

Percentage of
Net Assets

Financial

20.7%

Consumer, Cyclical

24.1%

Consumer, Non-Cyclical

13.3%

Industrial

10.2%

Energy

7.8%

Technology

8.3%

Basic Materials

11.5%

Communications

2.8%

Utilities

1.1%

Short-Term Investments

0.2%

Investments Purchased with Proceeds from Securities Lending

31.2%

Liabilities in excess of other assets

-31.2%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Lunt Capital U.S. MidCap Multi-Factor Rotation Index.

 

Pacer Lunt Large Cap Multi-Factor Alternator ETF

 

Sector(a)

Percentage of
Net Assets

Financial

21.2%

Consumer, Non-Cyclical

17.1%

Consumer, Cyclical

15.6%

Energy

15.1%

Technology

12.1%

Communications

8.1%

Basic Materials

7.1%

Industrial

2.6%

Utilities

0.8%

Short-Term Investments

0.2%

Investments Purchased with Proceeds from Securities Lending

13.9%

Liabilities in excess of other assets

-13.8%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Lunt Capital U.S. Large Cap Multi-Factor Rotation Index.

 

27

 

 

Pacer Funds

PORTFOLIO ALLOCATION (Unaudited) (Continued)
As of April 30, 2022

 

Pacer US Export Leaders ETF

 

Sector(a)

Percentage of
Net Assets

Technology

32.6%

Industrial

17.7%

Consumer, Non-cyclical

20.1%

Consumer, Cyclical

6.4%

Financial

1.1%

Basic Materials

12.6%

Communications

4.6%

Energy

4.9%

Short-Term Investments

0.1%

Investments Purchased with Proceeds from Securities Lending

23.3%

Liabilities in excess of other assets

-23.4%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Pacer US Export Leaders Index.

 

Pacer Pacific Asset Floating Rate High Income ETF

 

Sector

Percentage of
Net Assets

Consumer, Cyclical

17.6%

Industrial

10.0%

Consumer, Non-cyclical

10.3%

Communications

7.9%

Technology

9.5%

Financial

5.8%

Energy

2.4%

Basic Materials

0.8%

Short-Term Investments

12.2%

Other assets in excess of liabilities

-10.6%

Asset Backed Securities

34.2%

Total

100.0%

 

Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF

 

Sector(a)

Percentage of
Net Assets

Technology

21.8%

Consumer, Non-Cyclical

19.7%

Communications

12.1%

Financial

13.9%

Consumer, Cyclical

9.0%

Industrial

7.1%

Energy

4.0%

Utilities

2.7%

Basic Materials

2.1%

Short-Term Investments

2.5%

Other assets in excess of liabilities

5.2%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Metaurus US Large Cap Dividend Multiplier Total Return - Series 300.

 

28

 

 

Pacer Funds

PORTFOLIO ALLOCATION (Unaudited) (Continued)
As of April 30, 2022

 

Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF

 

Sector(a)

Percentage of
Net Assets

Technology

20.7%

Consumer, Non-Cyclical

18.8%

Communications

11.4%

Financial

13.2%

Consumer, Cyclical

8.7%

Industrial

6.8%

Energy

3.8%

Utilities

2.5%

Basic Materials

2.0%

Short-Term Investments

6.9%

Government Notes/Bonds

2.7%

Other assets in excess of liabilities

2.5%

Total

100.0%

 

(a)

The Fund may classify a company in a different category than the Metaurus US Large Cap Dividend Multiplier Total Return - Series 400.

 

29

 

 

Pacer Trendpilot® US Large Cap ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

 

This chart illustrates the performance of a hypothetical $10,000 investment made on June 11, 2015, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer Trendpilot® US Large Cap Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the S&P 500 Total Return Index, (ii) 50% to the S&P 500 Total Return Index and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the S&P 500 Total Return Index and its 200-business day historical simple moving average.

 

The S&P 500 Total Return Index consists of approximately 500 leading U.S.-listed companies representing approximately 80% of the U.S. equity market capitalization.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Five Year

Since Inception(2)

Pacer Trendpilot® US Large Cap ETF - NAV

3.48%

8.14%

9.11%

7.06%

Pacer Trendpilot® US Large Cap ETF - Market

3.38%

8.09%

9.08%

7.05%

Pacer Trendpilot® US Large Cap Index(3)

4.19%

8.79%

9.78%

7.72%

S&P 500® Total Return Index (3)

0.21%

13.85%

13.66%

12.36%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is June 11, 2015.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

30

 

 

Pacer Trendpilot® US Mid Cap ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

 

This chart illustrates the performance of a hypothetical $10,000 investment made on June 11, 2015, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer Trendpilot® US Mid Cap Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the S&P MidCap 400 Index, (ii) 50% to the S&P MidCap 400 Index and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the S&P MidCap 400 Total Return Index and its 200-business day historical simple moving average.

 

The S&P Midcap 400 Index measures the performance of mid-capitalization stocks in the United States.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Five Year

Since Inception(2)

Pacer Trendpilot® US Mid Cap ETF - NAV

-2.98%

4.42%

5.03%

5.46%

Pacer Trendpilot® US Mid Cap ETF - Market

-3.11%

4.38%

4.98%

5.44%

Pacer Trendpilot® US Mid Cap Index(3)

-2.63%

5.08%

5.65%

6.11%

S&P MidCap 400 Index(3)

-7.03%

9.91%

9.29%

9.01%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is June 11, 2015.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

31

 

 

Pacer Trendpilot® 100 ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

 

This chart illustrates the performance of a hypothetical $10,000 investment made on June 11, 2015, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

Pacer NASDAQ-100 Trendpilot® Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the NASDAQ-100 Index, (ii) 50% to the NASDAQ-100 Index and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the NASDAQ-100 Index and its 200-business day historical simple moving average.

 

The NASDAQ-100 Index includes approximately 100 of the largest non-financial securities listed on The NASDAQ Stock Market based on market capitalization. The NASDAQ-100 Index comprises securities of companies across major industry groups, including computer, biotechnology, healthcare, telecommunications and transportation. However, it does not contain securities of financial companies, including investment companies. The NASDAQ-100 Index was developed by NASDAQ OMX. There is no minimum market capitalization requirement for inclusion in the NASDAQ-100 Index. Inclusion is determined based on the top 100 largest issuers based on market capitalization meeting all other eligibility requirements.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Five Year

Since Inception(2)

Pacer Trendpilot® 100 ETF - NAV

-3.38%

13.40%

14.99%

11.58%

Pacer Trendpilot® 100 ETF - Market

-3.44%

13.37%

15.00%

11.58%

Pacer NASDAQ-100 Trendpilot® Index(3)

-2.77%

14.03%

15.62%

12.25%

NASDAQ-100 Index(3)

-6.61%

19.22%

19.27%

17.70%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.65%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is June 11, 2015.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

32

 

 

Pacer Trendpilot® European Index ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

 

This chart illustrates the performance of a hypothetical $10,000 investment made on December 14, 2015, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer Trendpilot® European Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the FTSE Eurozone Index, (ii) 50% to the FTSE Eurozone Index and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the FTSE Eurozone Total Return Index and its 200-business day historical simple moving average.

 

The FTSE Eurozone Index is a rules-based, float-adjusted, market capitalization-weighted index comprised of large- and mid-capitalization stocks providing coverage of the developed markets in the euro zone, including primarily France, Germany, Spain, the Netherlands, and Italy. The FTSE Eurozone Index is a subset of the FTSE Global Equity Index Series, which covers 99% of the investable market capitalization globally.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Five Year

Since Inception(2)

Pacer Trendpilot® European Index ETF - NAV

-6.47%

-4.20%

-2.25%

-0.56%

Pacer Trendpilot® European Index ETF - Market

-6.17%

-4.55%

-2.45%

-0.58%

Pacer Trendpilot® European Index(3)

-5.59%

-2.78%

-0.76%

0.86%

FTSE Eurozone Index(3)

-13.51%

3.57%

4.18%

6.14%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.65%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is December 14, 2015.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

33

 

 

Pacer Trendpilot® International ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

 

This chart illustrates the performance of a hypothetical $10,000 investment made on May 2, 2019, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer Trendpilot International Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the S&P Developed Ex-U.S. LargeCap Index, (ii) 50% to the S&P Developed Ex-U.S. LargeCap Index and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the S&P Developed Ex-U.S. LargeCap Index and its 200-business day historical simple moving average (the “200-day moving average”).

 

The S&P Developed Ex-US LargeCap Index is a rules-based, float-adjusted, market capitalization-weighted index comprised of large-capitalization stocks providing coverage of the developed markets excluding the United States.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Since Inception(2)

Pacer Trendpilot International ETF - NAV

-11.46%

0.69%

Pacer Trendpilot International ETF - Market

-11.72%

0.59%

Pacer Trendpilot International Index

-11.25%

1.57%

S&P Developed Ex-US Large Cap Index(3)

-6.82%

6.42%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.65%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is May 2, 2019.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

34

 

 

Pacer Trendpilot® US Bond ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

 

This chart illustrates the performance of a hypothetical $10,000 investment made on October 22, 2019, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer Trendpilot US Bond Index uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure to one of the following positions: (i) 100% to the S&P U.S. High Yield Corporate Bond Index, (ii) 50% to the S&P U.S. High Yield Corporate Bond Index and 50% to the S&P U.S. Treasury Bond 7-10 Year Index or (iii) 100% to S&P U.S. Treasury Bond 7-10 Year Index.

 

The S&P U.S. High Yield Corporate Bond Index is designed to track the performance of U.S. dollar-denominated, high-yield corporate bonds issued in the U.S. The S&P U.S. Treasury Bond 7-10 Year Index is designed to measure the performance of U.S. Treasury bonds maturing in 7 to 10 years.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Since Inception(2)

Pacer Trendpilot US Bond ETF - NAV

-12.54%

-0.06%

Pacer Trendpilot US Bond ETF - Market

-13.32%

-0.37%

Pacer Trendpilot US Bond Index(3)

-8.90%

2.27%

S&P U.S. High Yield Corporate Bond IndexTM(3)

-5.20%

2.05%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is October 22, 2019.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

35

 

 

Pacer Trendpilot® Fund of Funds ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

 

This chart illustrates the performance of a hypothetical $10,000 investment made on May 3, 2019, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer Trendpilot Fund of Funds Index uses an objective, rules-based approach to construct a portfolio that, as of each quarterly rebalance, is composed of the ETFs listed in the following table, each advised by the Adviser (collectively, the “Trendpilot ETFs”). Each of the Trendpilot ETFs is an index-based ETF that seeks to track the total return performance, before fees and expenses, of the underlying index listed in the following table (collectively, the “Trendpilot Indexes”). Each Trendpilot Index other than the Pacer Trendpilot US Bond Index (collectively, the “Trendpilot Equity Indexes”) uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure (i) 100% to the “Underlying Component” specified in the table below, (ii) 50% to the applicable Underlying Component and 50% to 3-Month US Treasury bills, or (iii) 100% to 3-Month US Treasury bills, depending on the relative performance of the Underlying Component and its 200 business day historical simple moving average (the “200-day moving average”). The calculation of the 200-day moving average for each Underlying Component is based on the total return version of such Underlying Component and reflects the reinvestment of dividends paid by the securities in such Underlying Component. The Pacer Trendpilot US Bond Index (the “Trendpilot Bond Index”) uses an objective, rules-based methodology to implement a systematic trend-following strategy that directs exposure to one of the following positions: (i) 100% to the S&P U.S. High Yield Corporate Bond Index, (ii) 50% to the S&P U.S. High Yield Corporate Bond Index and 50% to the S&P U.S. Treasury Bond 7-10 Year Index or (iii) 100% to S&P U.S. Treasury Bond 7-10 Year Index, depending on the value of the S&P U.S. High Yield Corporate Bond Index divided by the value of the S&P U.S. Treasury Bond 7-10 Year Index (the “Risk Ratio”).

 

Weight

Trendpilot ETF

Trendpilot Index

Equity Component

20%

Pacer Trendpilot® US Large Cap ETF

Pacer Trendpilot® US Large Cap Index

S&P 500® Index

20%

Pacer Trendpilot® US Mid Cap ETF

Pacer Trendpilot® US Mid Cap Index

S&P MidCap 400® Index

20%

Pacer Trendpilot® 100 ETF

Pacer NASDAQ-100 Trendpilot® Index

NASDAQ-100® Index

20%

Pacer Trendpilot® International ETF

Pacer Trendpilot® International Index

S&P Developed Ex-US Large Cap Index

20%

Pacer Trendpilot® US Bond ETF

Pacer Trendpilot® US Bond Index

S&P U.S. High Yield Corporate Bond Index

 

The S&P 1200 Index captures approximately 70% of global market capitalization.

 

36

 

 

Pacer Trendpilot® Fund of Funds ETF

PERFORMANCE SUMMARY (Continued)
(Unaudited)

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Since Inception(2)

Pacer Trendpilot Fund of Funds ETF - NAV

-5.87%

3.94%

Pacer Trendpilot Fund of Funds ETF - Market

-5.97%

3.91%

Pacer Trendpilot Fund of Funds Index(3)

-4.38%

5.26%

S&P 1200 Index(3)

-3.10%

10.78%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.15%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is May 3, 2019.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

37

 

 

Pacer Global Cash Cows Dividend ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

 

This chart illustrates the performance of a hypothetical $10,000 investment made on February 22, 2016, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer Global Cash Cows Dividend Index uses an objective, rules-based methodology to provide exposure to global companies with high dividend yield backed by a high free cash flow yield. The initial index universe is derived from the component companies of the FTSE All-World Developed Large Cap Index. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts, are excluded from the Index universe. The remaining companies are ranked by their free cash flow yield for the trailing twelve month period. The 300 companies with the highest free cash flow yield are then ranked by their dividend yield. The equity securities of the 100 companies with the highest dividend yield are included in the Index.

 

The FTSE All-World Developed Large-Cap Index is a market-capitalization weighted index representing the performance of large-cap stocks in developed markets.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Five Year

Since Inception(2)

Pacer Global Cash Cows Dividend ETF - NAV

10.22%

6.37%

7.09%

8.46%

Pacer Global Cash Cows Dividend ETF - Market

9.95%

6.22%

6.96%

8.42%

Pacer Global Cash Cows Dividend Index(3)

11.59%

7.53%

8.18%

9.52%

FTSE All-World Developed Large-Cap Index(3)

-3.35%

11.12%

10.90%

12.66%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is February 22, 2016.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

38

 

 

Pacer US Cash Cows 100 ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

 

This chart illustrates the performance of a hypothetical $10,000 investment made on December 16, 2016, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer US Cash Cows 100 Index uses an objective, rules-based methodology to provide exposure to large and mid-capitalization U.S. companies with high free cash flow yields. Companies with high free cash flow yields are commonly referred to as “cash cows.” The initial index universe is derived from the component companies of the Russell 1000® Index. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies with no forward year estimates available for free cash flows or earnings will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts, are excluded from the Index universe. The remaining companies are ranked by their free cash flow yield for the trailing twelve month period. The equity securities of the 100 companies with the highest free cash flow yield are included in the Index.

 

The Russell 1000 Index is a market-capitalization weighted index representing the top 1,000 large-cap stocks in the Russell 3000 Index.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Five Year

Since Inception(2)

Pacer US Cash Cows 100 ETF - NAV

16.08%

20.01%

15.36%

15.25%

Pacer US Cash Cows 100 ETF - Market

16.06%

19.88%

15.33%

15.21%

Pacer US Cash Cows 100 Index(3)

16.76%

20.47%

15.81%

15.72%

Russell 1000® Index(3)

-2.10%

13.57%

13.44%

13.75%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.49%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is December 16, 2016.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

39

 

 

Pacer US Small Cap Cash Cows 100 ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

 

This chart illustrates the performance of a hypothetical $10,000 investment made on June 16, 2017, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer US Small Cap Cash Cows Index uses an objective, rules-based methodology to provide exposure to small-capitalization U.S. companies with high free cash flow yields. Companies with high free cash flow yields are commonly referred to as “cash cows.” The initial Index universe is derived from the component companies of the S&P Small Cap 600® Index. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies for which information on their projected free cash flows or earnings is not available will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts, are excluded from the Index universe. The remaining companies are ranked by their free cash flow yield for the trailing twelve month period. The equity securities of the 100 companies with the highest free cash flow yield are included in the Index.

 

The S&P SmallCap 600® Index seeks to measure the small-cap segment of the U.S. equity market.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Since Inception(2)

Pacer US Small Cap Cash Cows 100 ETF - NAV

-6.57%

15.46%

10.76%

Pacer US Small Cap Cash Cows 100 ETF - Market

-6.65%

15.35%

10.71%

Pacer US Small Cap Cash Cows Index(3)

-5.91%

15.87%

11.09%

S&P SmallCap 600® Index(3)

-8.54%

9.15%

9.07%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplmented March 17, 2022 and December 3, 2021, is 0.59%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is June 16, 2017.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

40

 

 

Pacer Developed Markets International Cash Cows 100 ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on June 16, 2017, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer Developed Markets International Cash Cows 100 Index uses an objective, rules-based methodology to provide exposure to large and mid-capitalization non-U.S. companies in developed markets with high free cash flow yields. Companies with high free cash flow yields are commonly referred to as “cash cows”. The initial index universe is derived from the component companies of the FTSE Developed ex US Index. The initial universe of companies is screened based on their average projected free cash flows and earnings over each of the next two fiscal years (if available). Companies with no forward year estimates available for free cash flows or earnings will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts, and companies with a market capitalization of less than $3 billion are excluded from the Index universe. The remaining companies are ranked by their average daily trading value (“ADTV”) for the prior three months. The 500 companies with the highest ADTV are then ranked by their free cash flow yield for the trailing twelve month period. The equity securities of the 100 companies with the highest free cash flow yield are included in the Index.

 

The FTSE Developed ex-US Index is comprised of Large (85%) and Mid (15%) cap stocks providing coverage of Developed markets (24 countries) excluding the US.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Since Inception(2)

Pacer Developed Markets International Cash Cows 100 ETF - NAV

-4.48%

6.11%

6.14%

Pacer Developed Markets International Cash Cows 100 ETF - Market

-5.24%

5.67%

6.03%

Pacer Developed Markets International Cash Cows 100 Index(3)

-3.22%

7.42%

7.27%

FTSE Developed ex-US Index(3)

-7.93%

11.12%

4.63%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.65%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is June 16, 2017.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

41

 

 

Pacer US Cash Cows Growth ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on May 2, 2019, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer US Cash Cows Growth Index uses an objective, rules-based methodology to provide exposure to mid- and large-capitalization U.S. companies with high free cash flow yields. Companies with high free cash flow yields are commonly referred to as “cash cows”. The initial Index universe is derived from the component companies of the S&P 900® Pure Growth Index. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies for which information on their projected free cash flows or earnings is not available will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts, are excluded from the Index universe. The remaining companies are ranked by their free cash flow yield for the trailing twelve month period. The equity securities of the 50 companies with the highest free cash flow yield are included in the Index.

 

The S&P 900 Pure Growth Index is composed of companies found in the S&P 400 and S&P 500 Indices, including mid- and large-cap stocks based on growth potential with respect to sales, earnings relative to price, and momentum.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Since Inception(2)

Pacer US Cash Cows Growth ETF - NAV

-1.98%

13.45%

Pacer US Cash Cows Growth ETF - Market

-2.23%

13.40%

Pacer US Cash Cows Growth Index(3)

-1.78%

13.67%

S&P 900 Pure Growth Index(3)

-12.41%

10.11%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is May 2, 2019.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

42

 

 

Pacer Emerging Markets Cash Cows 100 ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on May 2, 2019, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer Emerging Markets Cash Cows 100 Index uses an objective, rules-based methodology to provide exposure to large and mid-capitalization companies in emerging markets with high free cash flow yields. Companies with high free cash flow yields are commonly referred to as “cash cows.” The initial index universe is derived from the component companies of the FTSE Emerging Markets Index. The Fund defines emerging markets countries as those countries included in the FTSE Emerging Markets Index. The initial universe of companies is screened based on their average projected free cash flows and earnings (if available) over each of the next two fiscal years. Companies with no forward year estimates available for free cash flows or earnings will remain in the Index universe. Companies with negative average projected free cash flows or earnings are removed from the Index universe. Additionally, financial companies, other than real estate investment trusts (“REITs”), companies with a market capitalization of less than $2 billion, and companies whose average daily trading value (“ADTV”) for the prior 90 days does not exceed $5 million are excluded from the Index universe. The remaining companies are ranked by their free cash flow yield for the trailing twelve-month period. The equity securities of the 100 companies with the highest free cash flow yield (the “Top 100 Companies”) are included in the Index.

 

The FTSE Emerging Markets Index is comprised of all the countries that make up the advanced emerging markets and secondary emerging markets within the FTSE Global Equity Index Series.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Since Inception(2)

Pacer Emerging Markets Cash Cows 100 ETF - NAV

-10.67%

1.64%

Pacer Emerging Markets Cash Cows 100 ETF - Market

-10.91%

1.70%

Pacer Emerging Markets Cash Cows 100 Index(3)

-8.68%

3.66%

FTSE Emerging Markets Index(3)

-15.07%

3.15%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.70%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is May 2, 2019.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

43

 

 

Pacer Cash Cows Fund of Funds ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on May 3, 2019, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer Cash Cows Fund of Funds Index uses an objective, rules-based approach to construct a portfolio that, as of each quarterly rebalance, is composed of the ETFs listed in the following table, each advised by the Adviser (collectively, the “Cash Cows ETFs”). Each of the Cash Cows ETFs is an index-based ETF that seeks to track the total return performance, before fees and expenses, of the applicable underlying index listed in the following table (collectively, the “Cash Cows Indexes”). Each Cash Cows Index uses an objective, rules-based methodology to provide exposure to companies with high free cash flow yields (commonly referred to as “cash cows”) selected from the applicable “Equity Universe” as indicated in the following table.

 

Weight

Cash Cows ETF

Cash Cows Index

Equity Universe

20%

Pacer US Cash Cows 100 ETF

Pacer US Cash Cows 100 ETF

Russell 1000 Index

20%

Pacer Global Cash Cows Dividend ETF

Pacer Global Cash Cows Dividend Index

FTSE Developed Large Cap Index

20%

Pacer US Small Cap Cash Cows 100 ETF

Pacer US Small Cap Cash Cows 100 Index

S&P Small Cap 600® Index

20%

Pacer US Cash Cows Growth ETF

Pacer US Cash Cows Growth Index

S&P 900® Pure Growth Index

20%

Pacer Developed Markets International Cash Cows 100 ETF

Pacer Developed Markets International Cash Cows 100 Index

FTSE Developed ex US Index

 

The FTSE All World Developed Index is a market-capitalization weighted index representing the performance of large- and mid-cap stocks from the FTSE Global Equity Index Series.

 44

 

 

Pacer Cash Cows Fund of Funds ETF

PERFORMANCE SUMMARY (Continued)
(Unaudited)

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Since Inception(2)

Pacer Cash Cows Fund of Funds ETF - NAV

2.29%

12.21%

Pacer Cash Cows Fund of Funds ETF - Market

1.94%

12.06%

Pacer Cash Cows Fund of Funds Index(3)

3.12%

12.90%

FTSE All World Developed Index(3)

-4.18%

10.23%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.15%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is May 3, 2019.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

45

 

 

Pacer WealthShield ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on December 11, 2017, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer WealthShield Index uses an objective, rules-based methodology to implement a trend-following strategy that directs some or all of the Index’s 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.

 

The S&P 500 Index consists of approximately 500 leading U.S.-listed companies representing approximately 8% of the U.S. equity market capitalization.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Since Inception(2)

Pacer WealthShield ETF - NAV

-5.30%

7.42%

5.42%

Pacer WealthShield ETF - Market

-5.35%

7.37%

5.39%

Pacer WealthShield Index(3)

-5.40%

7.28%

5.65%

S&P 500® Total Return Index(3)

0.21%

13.85%

12.54%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is December 11, 2017.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

46

 

 

Pacer Benchmark Industrial Real Estate SCTRSM ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on May 14, 2018, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Kelly Industrial Real Estate Index (formerly known as the Benchmark Industrial Real Estate SCTRSM Index) generally composed of the equity securities of developed markets companies that derive at least 85% of their earnings or revenues from real estate operations in the industrial real estate sector (“Industrial Companies”), including companies that derive at least 85% of their earnings or revenues from self-storage real estate operations (“SelfStorage Companies”).

 

The FTSE Nareit All Equity REITs Index is a free-float adjusted, market capitalization-weighted index of U.S. equity REITs. Constituents of the index include all tax-qualified REITs with more than 50% of total assets in qualifying real estate assets other than mortgages secured by real property.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Since Inception(2)

Pacer Benchmark Industrial Real Estate SCTRSM ETF - NAV

14.88%

19.61%

20.32%

Pacer Benchmark Industrial Real Estate SCTRSM ETF - Market

15.00%

19.54%

20.31%

Kelly Industrial Real Estate Index(3)

15.72%

20.69%

21.27%

FTSE NAREIT All Equity REITS Total Return Index

10.15%

10.41%

12.25%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is May 14, 2018.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

47

 

 

Pacer Benchmark Data & Infrastructure Real Estate SCTRSM ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on May 15, 2018, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Kelly Data Center & Tech Infrastructure Index (formerly known as the Benchmark Data & Infrastructure Real Estate SCTRSM Index) is generally composed of equity securities of developed markets companies that derive at least 85% of their earnings or revenues from real estate operations in the data and infrastructure real estate sectors (“Eligible Companies”). At the time of each reconstitution of the Index, Eligible Companies with a market capitalization of more than $500 million and average daily traded volume of at least 10,000 shares are included in the Index (the “Index Constituents”). A significant portion of the Index is expected to be composed of real estate investment trusts (“REITs”). The real estate companies included in the Index may utilize leverage, and some may be highly leveraged. Additionally, such companies may include significant business operations outside of the United States.

 

The FTSE Nareit All Equity REITs Index is a free-float adjusted, market capitalization-weighted index of U.S. equity REITs. Constituents of the index include all tax-qualified REITs with more than 50% of total assets in qualifying real estate assets other than mortgages secured by real property.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Since Inception(2)

Pacer Benchmark Data & Infrastructure Real Estate SCTRSM ETF - NAV

-1.63%

11.35%

13.10%

Pacer Benchmark Data & Infrastructure Real Estate SCTRSM ETF - Market

-2.04%

11.11%

12.96%

Kelly Data Center & Tech Infrastructure Index(3)

-0.99%

12.00%

13.94%

FTSE NAREIT All Equity REITS Total Return Index(3)

10.15%

10.41%

12.72%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is May 15, 2018.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

48

 

 

Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on July 23, 2018, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The CFRA-Stovall Equal Weight Seasonal Rotation Index (formerly known as Pacer CFRA-Stovall Equal Weight Seasonal Rotation Index) uses an objective, rules-based methodology to track the performance of a semi-annual rotation of certain sectors within the S&P 500 Equal Weight Index (“EWI”). The S&P 500 EWI is an equal-weighted version of the S&P 500®, which measures the performance of the large-cap segment of the U.S. equity market.

 

The S&P 500 Index consists of approximately 500 leading U.S.-listed companies representing approximately 8% of the U.S. equity market capitalization.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Since Inception(2)

Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF - NAV

-5.11%

8.76%

10.61%

Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF - Market

-5.22%

8.64%

10.53%

CFRA-Stovall Equal Weight Seasonal Rotation Index(3)

-4.37%

9.89%

11.63%

S&P 500® Total Return Index(3)

0.21%

13.85%

12.76%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2021, as supplemented March 17, 2022 and December 3, 2021, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is July 23, 2018.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

49

 

 

Pacer CSOP FTSE China A50 ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on March 10, 2015, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The FTSE China A50 Net Total Return Index® is comprised of the A-Shares issued by the 50 largest companies in the China A-Shares market. The Index is a free float-adjusted market capitalization-weighted index compiled and published by FTSE International Limited, which is not affiliated with the Fund, Pacer Advisors, Inc, CSOP Asset Management Limited (“CSOP” or “CSOP Sub-Adviser”) or the Fund’s distributor. The Index is a real-time, tradable index comprising of the largest 50 China A-Share companies by full market capitalization of the FTSE China A All Cap Free Index.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Five Year

Since Inception(2)

Pacer CSOP FTSE China A50 ETF - NAV

-22.15%

2.15%

8.16%

4.97%

Pacer CSOP FTSE China A50 ETF - Market

-24.03%

1.20%

7.80%

4.64%

FTSE China A50 Net Total Return Index®(3)

-22.09%

2.71%

8.86%

5.36%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2020, is 0.70%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is March 10, 2015. The Fund is the successor to the investment performance of the CSOP FTSE China A50 ETF (the “Predecessor CSOP”) as a result of the reorganization of the Predecessor CSOP Fund into the Fund on January 23, 2020. Accordingly, the performance information shown in the chart and table above for periods prior to January 23, 2020 is that of the Predecessor CSOP Fund’s Shares for the Fund. The Predecessor CSOP Fund was managed by the same portfolio managers as the Fund and had substantially the same investment objectives, policies, and strategies as the Fund.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

50

 

 

Pacer BioThreat Strategy ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on June 24, 2020, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The LifeSci BioThreat Strategy Index is generally composed of U.S.-listed stocks of companies whose products or services help protect against, endure, or recover from biological threats to human health. Companies helping to protect against such threats include those that conduct research to identify or anticipate such threats and those developing or producing the tools necessary to detect them. Companies helping to endure biological threats include those offering goods or services to help individuals, organizations, businesses, and governments adapt to requirements for social distancing or remote 2 connectivity. The Index Provider only includes those companies with a minimum market capitalization of $1 billion and a minimum average daily value traded for the last six moths of at least $2 million.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Since Inception(2)

Pacer BioThreat Strategy ETF - NAV

-4.41%

9.26%

Pacer BioThreat Strategy ETF - Market

-4.44%

9.22%

LifeSci BioThreat Strategy Index(3)

-3.68%

10.07%

S&P 500® Total Return Index(3)

0.21%

19.58%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated June 23, 2020, is 0.70%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is June 24, 2020.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

51

 

 

Pacer Lunt Large Cap Alternator ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on June 24, 2020, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Lunt Capital U.S. Large Cap Equity Rotation Index uses an objective, rules-based methodology to provide exposure to large-capitalization U.S. companies. The Index uses Lunt Capital’s proprietary relative strength methodology to rotate between the holdings of one of two sub-indices, the S&P 500 Low Volatility Index and the S&P 500 High Beta Index (each, a “Sub-Index,” and together, the “Sub-Indices”), that seek to identify the 100 components of the S&P 500 Index that most strongly exhibit a particular trait (e.g., low volatility or high beta). Each Sub-Index is composed of the 100 securities comprising the S&P 500 Index that most strongly exhibit the characteristic screened for by the Sub-Index.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Since Inception(2)

Pacer Lunt Large Cap Alternator ETF - NAV

6.97%

40.36%

Pacer Lunt Large Cap Alternator ETF - Market

6.80%

40.27%

Lunt Capital U.S. Large Cap Equity Rotation Index(3)

7.80%

41.70%

S&P 500® Total Return Index(3)

0.21%

19.58%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated June 23, 2020, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is June 24, 2020.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

52

 

 

Pacer Lunt Midcap Multi-Factor Alternator ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on June 24, 2020, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Lunt Capital U.S. MidCap Multi-Factor Rotation Index uses an objective, rules-based methodology to provide exposure to mid-capitalization U.S. companies. The Index uses Lunt Capital’s proprietary relative strength methodology to rotate between the holdings of the highest and lowest quintile components of four factor-based indices of the S&P MidCap 400 Index (each, a “Sub-Index,” and together, the “Sub-Indices”), that seek to identify the components of the S&P MidCap 400 Index that most strongly exhibit a particular factor. The four factor groups are Momentum, Quality, Value, and Volatility.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Since Inception(2)

Pacer Lunt Midcap Multi-Factor Alternator ETF - NAV

-12.66%

18.22%

Pacer Lunt Midcap Multi-Factor Alternator ETF - Market

-12.78%

18.18%

Lunt Capital U.S. MidCap Multi-Factor Rotation Index(3)

-12.41%

19.43%

S&P MidCap 400® Total Return Index(3)

-7.03%

23.62%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated June 23, 2020, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is June 24, 2020.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

53

 

 

Pacer Lunt Large Cap Multi-Factor Alternator ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on June 24, 2020, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Lunt Capital U.S. Large Cap Multi-Factor Rotation Index uses an objective, rules-based methodology to provide exposure to large-capitalization U.S. companies. The Index uses Lunt Capital’s proprietary relative strength methodology to rotate between the holdings of the highest and lowest quintile components of four factor-based indices of the S&P 500 Index (each, a “Sub-Index,” and together, the “Sub-Indices”), that seek to identify the components of the S&P 500 Index that most strongly exhibit a particular factor. The four factor groups are Momentum, Quality, Value, and Volatility.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Since Inception(2)

Pacer Lunt Large Cap Multi-Factor Alternator ETF - NAV

-2.58%

25.14%

Pacer Lunt Large Cap Multi-Factor Alternator ETF - Market

-2.52%

25.13%

Lunt Capital U.S. Large Cap Multi-Factor Rotation Index(3)

-1.72%

26.25%

S&P 500® Index(3)

0.21%

19.58%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated June 23, 2020, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is June 24, 2020.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

54

 

 

Pacer US Export Leaders ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on July 23, 2018, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Pacer US Export Leaders Index uses an objective, rules-based methodology to measure the performance of an equal weight portfolio of approximately 100 large- and mid-capitalization U.S. companies with a high percentage of foreign sales and high free cash flow growth. Free cash flow is a company’s cash flow from operations minus its capital expenditures. Construction of the Index begins with an initial universe of the 200 companies across the S&P 900® Index (which is comprised of the S&P 500® Index (“S&P 500”) and S&P MidCap 400® Index (“S&P MidCap 400”)) that have the highest annual foreign sales as a percentage of total sales. The 200 companies are then narrowed to the 100 companies with the highest change in free cash flow growth over the past five years, and those 100 companies are equally weighted to create the Index. The Index is reconstituted and rebalanced to equal-weight quarterly.

 

The S&P 900® combines the S&P 500® and the S&P MidCap 400® to form an investable benchmark for the mid- to large-cap segment of the U.S. equity market.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

One Year

Three Year

Since Inception(2)

Pacer US Export Leaders ETF - NAV

-5.00%

14.35%

12.51%

Pacer US Export Leaders ETF - Market

-4.66%

14.31%

12.47%

Pacer US Export Leaders Index(3)

-4.49%

15.07%

13.24%

S&P 900 IndexTM(3)

-24.00%

13.60%

12.43%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated August 31, 2020, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is July 23, 2018.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

55

 

 

Pacer Pacific Asset Floating Rate High Income ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on February 18, 2015, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The S&P/LSTA U.S. Leveraged Loan 100 Index is an index designed to reflect the performance of the largest facilities in the leveraged loan market.

 

The S&P 500 Index consists of approximately 500 leading U.S.-listed companies representing approximately 8% of the U.S. equity marketcapitalization.

 

Annualized Returns(1)
(For the Periods Ended April 30, 2022)

 

 

Ten Months

One Year

Three Year

Five Year

Since Inception(2)

Pacer Pacific Asset Floating Rate High Income ETF - NAV

0.34%

1.02%

2.66%

2.97%

2.97%

Pacer Pacific Asset Floating Rate High Income ETF - Market

0.47%

0.99%

2.72%

2.95%

3.00%

S&P/LSTA U.S. Leveraged Loan 100 Index (3)

1.04%

1.72%

3.06%

3.57%

3.52%

S&P 500® Index (3)

-2.62%

0.21%

13.85%

13.66%

11.97%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated October 25, 2021, is 0.60%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is February 18, 2015. The Fund is the successor to the investment performance of the Pacific Global Senior Loan ETF (the “Predecessor Fund”) as a result of the reorganization of the Predecessor CSOP Fund into the Fund on October 22, 2021. Accordingly, the performance information shown in the chart and table above for periods prior to October 22, 2021 is that of the Predecessor Fund’s Shares for the Fund. The Predecessor Fund was managed by the same portfolio managers as the Fund and had substantially the same investment objectives, policies, and strategies as the Fund.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

56

 

 

Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on July 12, 2021, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Metaurus US Large Cap Dividend Multiplier Index - Series 300 has two components: (i) an S&P 500 Index component (the “S&P 500 Component”) and (ii) a dividend component (the “Dividend Component”) consisting of long positions in annual futures contracts that provide exposure to ordinary dividends paid on the common stocks of companies included in the S&P 500. The Dividend Component is designed to give the Fund exposure to approximately 300% of the ordinary dividends the Fund would otherwise have expected to receive from its investment in the S&P 500 Component. The Dividend Component consists of annual futures contracts whose value represents the market’s expectation of the amount of ordinary dividends to be paid by S&P 500 companies during the term of the futures contract.

 

The S&P 500 Total Return Index consists of approximately 500 leading U.S.-listed companies representing approximately 80% of the U.S. equity market capitalization.

 

Cumulative Returns(1)
(For the Periods Ended April 30, 2022)

 

 

Since Inception(2)

Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF - NAV

-5.21%

Pacer Metaurus US Large Cap Dividend Multiplier 300 ETF - Market

-5.07%

Metaurus US Large Cap Dividend Multiplier Return Index – Series 300 (3)

-4.44%

S&P 500® Total Return Index (3)

-4.73%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated July 12, 2021, is 0.79%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is July 12, 2021.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

57

 

 

Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF

PERFORMANCE SUMMARY
(Unaudited)

 

Growth of $10,000

 

This chart illustrates the performance of a hypothetical $10,000 investment made on July 12, 2021, and is not intended to imply any future performance. The returns shown do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. The chart assumes reinvestment of capital gains and dividends.

 

The Metaurus US Large Cap Dividend Multiplier Index - Series 400 has two components: (i) an S&P 500 Index component (the “S&P 500 Component”) and (ii) a dividend component (the “Dividend Component”) consisting of long positions in annual futures contracts that provide exposure to ordinary dividends paid on the common stocks of companies included in the S&P 500. The Dividend Component is designed to give the Fund exposure to approximately 400% of the ordinary dividends the Fund would otherwise have expected to receive from its investment in the S&P 500 Component. The Dividend Component consists of annual futures contracts whose value represents the market’s expectation of the amount of ordinary dividends to be paid by S&P 500 companies during the term of the futures contract.

 

The S&P 500 Total Return Index consists of approximately 500 leading U.S.-listed companies representing approximately 80% of the U.S. equity market capitalization.

 

Cumulative Returns(1)
(For the Periods Ended April 30, 2022)

 

 

Since Inception(2)

Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF - NAV

-5.00%

Pacer Metaurus US Large Cap Dividend Multiplier 400 ETF - Market

-4.71%

Metaurus US Large Cap Dividend Multiplier Return Index – Series 400 (3)

-4.28%

S&P 500® Total Return Index (3)

-4.73%

 

(1)

The performance data quoted is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that investor’s shares, when redeemed, may be worth more or less than the original cost. The returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or on redemptions of Fund shares. The total annual operating expenses as stated in the fee table to the Fund’s prospectus dated July 12, 2021, is 0.79%. For performance information current to the most recent month-end, please call 1-877-337-0500.

(2)

Inception date is July 12, 2021.

(3)

Indexes are unmanaged statistical composites and their returns do not include fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index.

 

58

 

 

Pacer Funds

EXPENSE EXAMPLE
For the Six-Months Ended April 30, 2022

 

As a shareholder of a Fund, you pay ongoing expenses, such as advisory fees, and other fund expenses. The following examples are intended to help you understand the ongoing cost (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds. Please note, the expenses shown in the tables are meant to highlight ongoing costs only and do not reflect any transactional costs. You may pay brokerage commissions on your purchase and sale of Fund shares, which are not reflected in the following examples. Each example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period as indicated below.

 

Actual Expenses

 

The columns under the heading entitled “Actual” help you estimate the actual expenses you paid over the period. The “Actual Ending Account Value” shown is derived from a Fund’s actual return and the “Actual Expenses Paid During Period” show the dollar amount that would have been paid by an investor who started with $1,000 in a Fund. To estimate the expenses you paid on your account during this period, simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the column under the heading untitled “Actual Expenses Paid During Period”.

 

Hypothetical Example for Comparison Purposes

 

The columns under the heading entitled “Hypothetical” provide information about hypothetical account value and hypothetical expenses based on a Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

 

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs which may be applicable to your account. Therefore, the last column of the table (Hypothetical Expenses Paid During Period) is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

 

Fund’s Annual
Expense Ratio

Beginning Account
Value 11/01/21

Ending Account
Value 04/30/22

Expenses Paid
During Period
(a)

Pacer Trendpilot® US Large Cap ETF

       

Actual

0.60%

$1,000.00

$ 936.40

$ 2.88

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer Trendpilot® US Mid Cap ETF

       

Actual

0.60%

$1,000.00

$ 954.80

$ 2.91

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer Trendpilot® 100 ETF

       

Actual

0.65%

$1,000.00

$ 898.10

$ 3.06

Hypothetical(b)

0.65%

$1,000.00

$ 1,021.57

$ 3.26

Pacer Trendpilot® European Index ETF

       

Actual

0.65%

$1,000.00

$ 898.80

$ 3.06

Hypothetical(b)

0.65%

$1,000.00

$ 1,021.57

$ 3.26

Pacer Trendpilot® International ETF

       

Actual

0.65%

$1,000.00

$ 847.60

$ 2.98

Hypothetical(b)

0.65%

$1,000.00

$ 1,021.57

$ 3.26

Pacer Trendpilot® US Bond ETF

       

Actual

0.60%

$1,000.00

$ 879.20

$ 2.80

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer Trendpilot® Fund of Funds ETF

       

Actual

0.15%

$1,000.00

$ 899.50

$ 0.71

Hypothetical(b)

0.15%

$1,000.00

$ 1,024.05

$ 0.75

Pacer Global Cash Cows Dividend ETF

       

Actual

0.60%

$1,000.00

$ 1,109.40

$ 3.14

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

 

59

 

 

Pacer Funds

EXPENSE EXAMPLE
For the Six-Months Ended April 30, 2022 (Continued)

 

 

Fund’s Annual
Expense Ratio

Beginning Account
Value 11/01/21

Ending Account
Value 04/30/22

Expenses Paid
During Period
(a)

Pacer U.S. Cash Cows 100 ETF

       

Actual

0.49%

$1,000.00

$ 1,074.20

$ 2.52

Hypothetical(b)

0.49%

$1,000.00

$ 1,022.36

$ 2.46

Pacer U.S. Small Cap Cash Cows 100 ETF

       

Actual

0.59%

$1,000.00

$ 907.60

$ 2.79

Hypothetical(b)

0.59%

$1,000.00

$ 1,021.87

$ 2.96

Pacer Developed Markets International Cash Cows 100 ETF

       

Actual

0.65%

$1,000.00

$ 974.30

$ 3.18

Hypothetical(b)

0.65%

$1,000.00

$ 1,021.57

$ 3.26

Pacer US Cash Cows Growth ETF

       

Actual

0.60%

$1,000.00

$ 870.50

$ 2.78

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer Emerging Markets Cash Cows 100 ETF

       

Actual

0.70%

$1,000.00

$ 942.80

$ 3.37

Hypothetical(b)

0.70%

$1,000.00

$ 1,021.32

$ 3.51

Pacer Cash Cows Fund of Funds ETF

       

Actual

0.15%

$1,000.00

$ 982.00

$ 0.74

Hypothetical(b)

0.15%

$1,000.00

$ 1,024.05

$ 0.75

Pacer WealthShield ETF

       

Actual

0.60%

$1,000.00

$ 883.20

$ 2.80

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer Benchmark Industrial Real Estate SCTRSM ETF

       

Actual

0.60%

$1,000.00

$ 970.20

$ 2.93

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer Benchmark Data & Infrastructure Real Estate SCTRSM ETF

     

Actual

0.60%

$1,000.00

$ 926.90

$ 2.87

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETF

       

Actual

0.60%

$1,000.00

$ 916.10

$ 2.85

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer CSOP FTSE China A50 ETF

       

Actual

0.70%

$1,000.00

$ 824.00

$ 3.17

Hypothetical(b)

0.70%

$1,000.00

$ 1,021.32

$ 3.51

Pacer BioThreat Strategy ETF

       

Actual

0.70%

$1,000.00

$ 827.70

$ 3.17

Hypothetical(b)

0.70%

$1,000.00

$ 1,021.32

$ 3.51

Pacer Lunt Large Cap Alternator ETF

       

Actual

0.60%

$1,000.00

$ 998.70

$ 2.97

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer Lunt Midcap Multi-Factor Alternator ETF

       

Actual

0.60%

$1,000.00

$ 892.10

$ 2.81

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer Lunt Large Cap Multi-Factor Alternator ETF

       

Actual

0.60%

$1,000.00

$ 875.70

$ 2.79

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer US Export Leaders ETF

       

Actual

0.60%

$1,000.00

$ 867.40

$ 2.78

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

 

60

 

 

Pacer Funds

EXPENSE EXAMPLE
For the Six-Months Ended April 30, 2022 (Continued)

 

 

Fund’s Annual
Expense Ratio

Beginning Account
Value 11/01/21

Ending Account
Value 04/30/22

Expenses Paid
During Period
(a)

Pacer Pacific Asset Floating Rate High Income ETF

     

Actual

0.60%

$1,000.00

$ 993.60

$ 2.97

Hypothetical(b)

0.60%

$1,000.00

$ 1,021.82

$ 3.01

Pacer Metarus US Large Cap Target Dividend 300 ETF

       

Actual

0.79%

$1,000.00

$ 903.10

$ 3.73

Hypothetical(b)

0.79%

$1,000.00

$ 1,020.88

$ 3.96

Pacer Metarus US Large Cap Target Dividend 400 ETF

       

Actual

0.79%

$1,000.00

$ 906.10

$ 3.73

Hypothetical(b)

0.79%

$1,000.00

$ 1,020.88

$ 3.96

 

(a)

The dollar amounts shown as expenses paid during the period are equal to the annualized six-month expense ratio multiplied by the average account value during the period, multiplied by the number of days (184) in the most recent six-month period and divided by the number of days in the most recent twelve-month period (365).

(b)

Assumes 5% return before expenses.

 

61

 

 

Pacer Trendpilot® US Large Cap ETF

SCHEDULE OF INVESTMENTS
April 30, 2022

 

   

Principal
Amount

   

Value

 

SHORT-TERM INVESTMENTS — 64.6%

       
                 

Money Market Deposit Accounts — 16.5%

       

U.S. Bank Money Market Deposit Account, 0.13% (b)

  $ 303,238,097     $ 303,238,097  
                 

U.S. Treasury Bills — 48.1%

       

United States Treasury Bill, 0.00%, 07/21/2022

    887,000,000       885,388,126  

TOTAL SHORT-TERM INVESTMENTS (Cost $1,188,651,477)

            1,188,626,223  
         
   

Shares

         

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING — 0.5%

Mount Vernon Liquid Assets Portfolio, LLC, 0.45% (b)

    9,260,305       9,260,305  

TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $9,260,305)

            9,260,305  
         

Total Investments (Cost $1,197,911,782) — 65.1%

            1,197,886,528  

Other Assets in Excess of Liabilities — 34.9%

            643,356,549  

TOTAL NET ASSETS — 100.0%

          $ 1,841,243,077  

 

Percentages are stated as a percent of net assets.

 

(a)

Due to settlement of open trades, there are no positions in the portfolio on loan as of April 30, 2022. The total value of securities on loan is $8,697,806 or 0.5% of net assets.

 

(b)

The rate shown is as of April 30, 2022.

 

 

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or they may be defined by Fund management. This definition does not apply for all purposes of this report, which may combine sub-classifications for reporting ease. Categories are shown as a percentage of net assets.

 

The accompanying notes are an integral part of the financial statements.

 

62

 

 

Pacer Trendpilot® US Mid Cap ETF

SCHEDULE OF INVESTMENTS
April 30, 2022

 

   

Principal
Amount

   

Value

 

SHORT-TERM INVESTMENTS — 100.0%

       
                 

Money Market Deposit Accounts — 63.8%

       

U.S. Bank Money Market Deposit Account, 0.13% (a)

  $ 282,122,221     $ 282,122,221  
                 

U.S. Treasury Bills — 36.2%

       

United States Treasury Bill, 0.00%, 05/19/2022

    160,000,000       159,984,133  

TOTAL SHORT-TERM INVESTMENTS (Cost $442,093,421)

            442,106,354  
         

Total Investments (Cost $442,093,421) — 100.0%

            442,106,354  

Liabilities in Excess of Other Assets — 0.0% (b)

            (212,828 )

TOTAL NET ASSETS — 100.0%

          $ 441,893,526  

 

Percentages are stated as a percent of net assets.

 

(a)

The rate shown is as of April 30, 2022.

 

(b)

Less than 0.05%.

 

 

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or they may be defined by Fund management. This definition does not apply for all purposes of this report, which may combine sub-classifications for reporting ease. Categories are shown as a percentage of net assets.

 

The accompanying notes are an integral part of the financial statements.

 

63

 

 

Pacer Trendpilot® 100 ETF

SCHEDULE OF INVESTMENTS
April 30, 2022

 

   

Principal
Amount

   

Value

 

SHORT-TERM INVESTMENTS — 100.1%

       
                 

Money Market Deposit Accounts — 2.3%

       

U.S. Bank Money Market Deposit Account, 0.13% (b)

  $ 15,943,812     $ 15,943,812  
                 

U.S. Treasury Bills — 97.8%

       

United States Treasury Bill, 0.00%, 07/21/2022

    324,000,000       323,411,221  

United States Treasury Bill, 0.00%, 06/16/2022 (a)

    350,000,000       349,807,391  
              673,218,612  

TOTAL SHORT-TERM INVESTMENTS (Cost $689,180,896)

            689,162,424  
         
   

Shares

         

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING — 14.8%

Mount Vernon Liquid Assets Portfolio, LLC, 0.45% (b)

    102,000,000       102,000,000  

TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $102,000,000)

            102,000,000  
         

Total Investments (Cost $791,180,896) — 114.9%

            791,162,424  

Liabilities in Excess of Other Assets — (14.9)%

            (102,346,540 )

TOTAL NET ASSETS — 100.0%

          $ 688,815,884  

 

Percentages are stated as a percent of net assets.

 

(a)

Due to settlement of open trades, there are no positions in the portfolio on loan as of April 30, 2022. The total value of securities on loan is $99,945,000 or 14.5% of net assets.

 

(b)

The rate shown is as of April 30, 2022.

 

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or they may be defined by Fund management. This definition does not apply for all purposes of this report, which may combine sub-classifications for reporting ease. Categories are shown as a percentage of net assets.

 

The accompanying notes are an integral part of the financial statements.

 

64

 

 

Pacer Trendpilot® European Index ETF

SCHEDULE OF INVESTMENTS
April 30, 2022

 

   

Shares

   

Value

 

COMMON STOCKS — 0.1%

       
                 

Greece — 0.0%(d)

       

FF Group (a) (b)

    1,259     $ 6,376  
                 

Netherlands — 0.0%(d)

       

Iveco Group NV (b)

    844       5,029  
                 

United Kingdom — 0.1%

       

TechnipFMC PLC (a) (b)

    3,996       27,654  

TOTAL COMMON STOCKS (Cost $58,227)

            39,059  
         
   

Principal
Amount

         

SHORT-TERM INVESTMENTS- 99.1%

       
                 

Money Market Deposit Accounts — 12.1%

       

U.S. Bank Money Market Deposit Account, 0.13% (c)

  $ 5,551,951       5,551,951  
                 

U.S. Treasury Bills — 87.0%

       

United States Treasury Bill, 0.00%, 06/02/2022

    20,000,000       19,994,442  

United States Treasury Bill, 0.00%, 06/09/2022

    20,000,000       19,991,001  
              39,985,443  

TOTAL SHORT-TERM INVESTMENTS (Cost $45,537,782)

            45,537,394  
         

Total Investments (Cost $45,596,009) — 99.2%

            45,576,453  

Other Assets in Excess of Liabilities — 0.8%

            348,364  

TOTAL NET ASSETS — 100.0%

          $ 45,924,817  

 

Percentages are stated as a percent of net assets.

 

(a)

Value determined using significant unobservable inputs.

 

(b)

Non-income producing security.

 

(c)

The rate shown is as of April 30, 2022.

 

(d)

Less than 0.05%.

 

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or they may be defined by Fund management. This definition does not apply for all purposes of this report, which may combine sub-classifications for reporting ease.

 

The accompanying notes are an integral part of the financial statements.

 

65

 

 

Pacer Trendpilot® International ETF

SCHEDULE OF INVESTMENTS
April 30, 2022

 

   

Shares

   

Value

 

COMMON STOCKS — 0.0%(d)

       
                 

Germany — 0.0%(d)

       

Allianz SE - ADR

    1     $ 22  
                 

Israel — 0.0%(d)

       

Isracard Ltd.

    1       4  
                 

Netherlands — 0.0%(d)

       

Iveco Group NV (b)

    1,975       11,768  

Iveco Group NV (b)

    1,529       8,942  
              20,710  

United States — 0.0%(d)

       

Block, Inc. (b)

    0       39  

TOTAL COMMON STOCKS (Cost $26,164)

            20,775  
         

PREFERRED STOCKS — 0.0%(d)

       
                 

Bermuda — 0.0%(d)

       

Brookfield Property Preferred LP (b)

    31       647  

TOTAL PREFERRED STOCKS (Cost $778)

            647  
         
   

Principal
Amount

         

SHORT-TERM INVESTMENTS- 51.2%

       
                 

Money Market Deposit Accounts — 5.3%

       

U.S. Bank Money Market Deposit Account, 0.13% (c)

  $ 6,965,347       6,965,347  
                 

U.S. Treasury Bills — 45.9%

       

United States Treasury Bill, 0.00%, 07/21/2022

    60,000,000       59,890,967  

TOTAL SHORT-TERM INVESTMENTS (Cost $66,853,972)

            66,856,314  

 

   

Shares

   

Value

 

INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING — 3.0%

Mount Vernon Liquid Assets Portfolio, LLC, 0.45% (c)

    3,876,193     $ 3,876,193  

TOTAL INVESTMENTS PURCHASED WITH PROCEEDS FROM SECURITIES LENDING (Cost $3,876,193)

            3,876,193  
         

Total Investments (Cost $70,757,107) — 54.2%

            70,753,929  

Other Assets in Excess of Liabilities — 45.8%

            59,772,937  

TOTAL NET ASSETS — 100.0%

          $ 130,526,866  

 

Percentages are stated as a percent of net assets.

  ADR American Depositary Receipt

 

(a)

Due to settlement of open trades, there are no positions in the portfolio on loan as of April 30, 2022. The total value of securities on loan is $3,781,664 or 2.9% of net assets.

 

(b)

Non-income producing security.

 

(c)

The rate shown is as of April 30, 2022.

 

(d)

Less than 0.05%.

 

For Fund compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or they may be defined by Fund management. This definition does not apply for all purposes of this report, which may combine sub-classifications for reporting ease.

 

The accompanying notes are an integral part of the financial statements.

 

66

 

 

Pacer Trendpilot® US Bond ETF

SCHEDULE OF INVESTMENTS
April 30, 2022

 

   

Principal
Amount

   

Value

 

CORPORATE BONDS — 98.7%

       
                 

Accommodation and Food Services — 0.0% (a)

       

Resorts World Las Vegas LLC

       

4.625%, 04/06/2031

  $ 320,000     $ 273,842  
         

Advertising — 0.9%

       

Advantage Sales & Marketing, Inc.

       

6.500%, 11/15/2028 (b)

    995,000       905,485  

Clear Channel Outdoor Holdings, Inc.

       

5.125%, 08/15/2027 (b)

    1,640,000       1,543,281  

7.750%, 04/15/2028 (b)

    895,000       844,692  

7.500%, 06/01/2029 (b)

    300,000       283,494  

Lamar Media Corp.

       

4.875%, 01/15/2029

    615,000       587,365  

4.000%, 02/15/2030

    965,000       865,986  

National CineMedia LLC

       

5.875%, 04/15/2028 (b)(c)

    875,000       753,515  

Outfront Media Capital LLC / Outfront Media Capital Corp.

       

4.625%, 03/15/2030 (b)

    1,080,000       962,496  

Stagwell Global LLC

       

5.625%, 08/15/2029 (b)

    1,155,000       1,021,170  

Terrier Media Buyer, Inc.

       

8.875%, 12/15/2027 (b)

    860,000       842,847  
              8,610,331  

Aerospace/Defense — 1.9%

       

Bombardier, Inc.

       

7.500%, 12/01/2024 (b)

    1,595,000       1,589,410  

7.125%, 06/15/2026 (b)

    1,900,000       1,750,289  

Hexcel Corp.

       

4.950%, 08/15/2025

    1,275,000       1,292,687  

Howmet Aerospace, Inc.

       

5.125%, 10/01/2024

    235,000       239,412  

6.875%, 05/01/2025

    345,000       365,295  

6.750%, 01/15/2028

    695,000       737,555  

3.000%, 01/15/2029

    605,000       528,749  

5.950%, 02/01/2037

    680,000       688,265  

Spirit AeroSystems, Inc.

       

5.500%, 01/15/2025 (b)

    2,250,000       2,246,602  

4.600%, 06/15/2028 (c)

    730,000       630,954  

TransDigm, Inc.

       

6.250%, 03/15/2026 (b)

    2,645,000       2,638,030  

6.375%, 06/15/2026

    1,245,000       1,230,963  

5.500%, 11/15/2027

    1,815,000       1,666,660  

4.625%, 01/15/2029

    1,120,000       975,901  

4.875%, 05/01/2029

    740,000       649,650  

Triumph Group, Inc.

       

6.250%, 09/15/2024 (b)

    705,000       679,557  

7.750%, 08/15/2025 (c)

    320,000       311,646  
              18,221,625  

 

   

Principal
Amount

   

Value

 

Agriculture — 0.1%

       

Turning Point Brands, Inc.

       

5.625%, 02/15/2026 (b)

  $ 655,000     $ 624,441  

Vector Group Ltd.

       

5.750%, 02/01/2029 (b)

    680,000       597,825  
              1,222,266  

Airlines — 1.2%

       

Air Canada

       

3.875%, 08/15/2026 (b)

    105,000       97,206  

American Airlines Group, Inc.

       

3.750%, 03/01/2025 (b)(c)

    760,000       679,421  

American Airlines Inc/AAdvantage Loyalty IP Ltd.

       

5.500%, 04/20/2026 (b)

    2,405,000       2,386,758  

5.750%, 04/20/2029 (b)

    1,215,000       1,172,718  

American Airlines, Inc.