The people have spoken, and the best new ETF of 2015 is the Pacer Trendpilot 750 ETF (PTLC).
A panel of industry experts, including ETF.com’s Matt Hougan and FactSet’s Dave Nadig, argued the case at Inside ETFs for eight different funds that came to market in 2015, and put the decision of which one deserved to be crowned the best up to an audience vote.
PTLC tracks an index that allocates to the Wilshire U.S. Large-Cap Index and/or three-month US T-bills, according to momentum. The fund, which came to market last June, was one of Pacer’s first three ETFs—a new issuer bringing to market new ideas—and it has already gathered about $285 million in assets.
In & Out Of The Market
“PTLC is a classic investor strategy that’s in the market when the market’s going up, and out when it’s going down,” said Dave Nadig, director of ETFs for FactSet.
The fund is designed to offer exposure to the upside of the large-cap U.S. equities while protecting on the downside by partly or fully toggling to cash in during down-trending markets. The fund works by investing 100% in the Wilshire U.S. Large-Cap Index when it closes above its 200-day simple moving average for five-consecutive days.
That position shifts to half of its assets in the large-cap index and half in three-month T-bills when the index closes below its moving average for five-consecutive days. The fund can also be fully invested in three-month T-bills when the large-cap index closes below its value from five business days earlier. The portfolio comes with an expense ratio of 0.60%.
PTLC has underperformed the S&P 500 since it came to market, but recent performance was not the reason the fund was picked by the audience. The criteria for the choice had more to do with whether the nominated new launches actually brought anything new to investors, and PTLC does. The fund beat seven other ETFs to the title:
- SPDR DoubleLine Total Return Tactical ETF (TOTL | C)
- FlexShares Credit-Scored U.S. Long Corporate Bond (LKOR)
- U.S. Global Jets (JETS)
- Goldman Sachs ActiveBeta Emerging Markets Equity (GEM)
- Market Vectors Oil Refiners (CRAK)
- iShares Exponential Technologies (XT | D-56)
- iShares FactorSelect MSCI USA (LRGF | F-80)
The exercise was a prelude to the upcoming ETF.com Awards Dinner, taking place March 16, 2016, at Chelsea Piers, Pier 61, in New York, when a new ETF will be announced best new fund of 2015.
Contact Cinthia Murphy at [email protected].