Fund Description: Pacer Trendpilot US Bond ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the Pacer Funds Trust , an open-end investment management company. INVESTMENT OBJECTIVE: The Pacer Trendpilot US Bond ETF seeks to provide investment returns that closely correspond to the price and yield performance of the Pacer Trendpilot US Bond Index. INDEX DESCRIPTION: 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, depending on the Risk Ratio. The Index, and consequently the Fund, may stay in any of its three possible positions for an extended period of time. The Index will change its position based on the following indicators, and each change will become effective on the fifth business day after the indicator for the change is triggered. When the Risk Ratio closes above its 100-day historical simple moving average for five consecutive business days (the High Yield Indicator), the exposure of the Index will be 100% to the S&P U.S. High Yield Corporate Bond Index. Once the High Yield Indicator has been triggered, the exposure of the Index will next change to either be 50% to the S&P U.S. High Yield Corporate Bond Index and 50% S&P U.S. Treasury Bond 7-10 Year Index. Once the 50/50 Indicator has been triggered, the exposure of the Index will next change to either be 100% to the S&P U.S. High Yield Corporate Bond Index if the High Yield Indicator is triggered or 100% to S&P U.S. Treasury Bond 7-10 Year Index if the T-Bond Indicator is triggered, effective on the fifth business day following the date of the indicator. Once the T-Bond Indicator has been triggered, the exposure of the Index will next change to be 100% to the S&P U.S. High Yield Corporate Bond Index. FUND STRATEGY: The Fund employs a passive management (or indexing) investment approach designed to track the total return performance of the Index. 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 Index. The Fund will generally use a replication strategy to achieve its investment objective, meaning it will invest in all of the component securities of the Index in the same approximate proportion as in the Index. However, the Fund may use a representative sampling strategy, meaning it may invest in a sample of the securities in the Index whose risk, return and other characteristics closely resemble the risk, return and other characteristics of the Index. The Fund generally may invest up to 20% of its total assets (exclusive of any collateral held from securities lending) in securities or other investments not included in the Index. FUND MANAGEMENT: Pacer Advisors, Inc. serves as investment adviser to the Fund. Vident Investment Advisory, LLC serves as investment sub-adviser to the Fund.