Trend following ETFs are exchange-traded funds that use a rules-based trend rule, usually a moving average, to shift between a market and cash. The goal is to stay invested in uptrends and step aside in downtrends, without predicting what happens next.
Is there a trend following ETF?
Yes, and they come in two main flavors.
- Equity trend ETFs. The Pacer Trendpilot family (PTLC, PTNQ, PTBD and others) holds a stock index when it is above its 200-day simple moving average, and shifts to Treasury bills when it falls below. PTLC, the US large-cap version, moves between 100% stocks, a 50/50 split, and 100% T-bills depending on how far the index is from its 200-day line.
- Managed futures ETFs. Funds such as DBMF, KMLM and CTA follow trends across futures markets (commodities, currencies, rates) rather than a single stock index. They are built to be largely uncorrelated with equities.
Trend following ETFs at a glance
| Fund | Ticker | Approach | Expense ratio |
|---|---|---|---|
| Pacer Trendpilot US Large Cap | PTLC | 200-day SMA on S&P 500 | 0.60% |
| iMGP DBi Managed Futures Strategy | DBMF | Trend following across futures | 0.85% |
| KraneShares Mount Lucas Managed Futures | KMLM | Index-based trend following | 0.90% |
| Simplify Managed Futures Strategy | CTA | Long/short trend across futures | 0.76% |
Expense ratios as of August 2026. Verify current fees on the fund’s own page before investing.
How the rules work
The classic rule is simple. Each day you compare the fund’s index to its 200-day moving average. Above the line means the trend is up, so you stay invested. Below the line means the trend is down, so you move to cash or bonds. There is no forecasting, no news, and no discretion. See the fully documented 200-day rule example for the exact entry, exit, and rebalance rules.
The trade-off is built in. A trend rule is always late. It gives back part of every move at the top and the bottom, and it whipsaws in choppy, range-bound markets. That is the cost of never having to guess. The risks guide covers each failure mode.
Which ETFs are trending right now?
Rather than chase a list that goes stale, find trending ETFs yourself with three checks: relative strength over 3 to 12 months (see momentum ETFs), a price above its 200-day moving average, and recent inflows or rising volume. The signal comparison guide shows how each filter works and what it catches.
Where to buy, and what it costs
These are US-listed ETFs, so you buy them through any broker that offers US markets (and through international brokers that access US exchanges). The costs are the fund’s expense ratio above, plus any commission or foreign-exchange fee your broker charges. A 0.60% to 0.90% fee is high for a buy-and-hold fund, so it only makes sense if you want the trend rule handled for you.
Check the trend yourself, in two minutes
You do not need a fund to see the rule in action. Open any free charting tool, pull up an ETF, and add a 200-day simple moving average. If price is above the line, the trend is up. If it is below, the trend is down. Watch what happens at each crossover: the signal fires after the turn has already started. That is the entire concept, and it is why the strategy is mechanical rather than clever.
To test whether the rule actually helped a given ETF, use our free tools, and read how to backtest without fooling yourself before trusting any result.
FAQ
Is there a trend following ETF?
Yes. The Pacer Trendpilot family (PTLC, PTNQ, PTBD and others) uses a 200-day moving-average rule to shift between a stock index and Treasury bills. Managed futures ETFs such as DBMF, KMLM and CTA follow trends across futures markets instead.
Which ETFs are currently trending?
That changes over time, so the useful answer is a method, not a list. Look for ETFs with strong momentum over 3 to 12 months, a price above its 200-day moving average, and recent inflows or rising volume. Free screeners can filter for all three.
What ETFs are trending right now?
The same approach applies at any moment: screen for recent relative strength and a price above a long-term moving average, then confirm the trend with volume. We walk through the signals in the comparison guide rather than naming funds that will soon be out of date.
What is the 7% rule in ETF?
The 7% rule is a stop-loss guideline popularized by trader William O’Neil: sell a position if it falls 7% to 8% below your purchase price. It is a risk-management rule that applies to ETFs the same way it applies to stocks.
Disclaimer: Educational content only, not financial advice. Fund fees and details change; verify them on the issuer’s site before investing. Full disclaimer and affiliate disclosure.
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