BALT vs PSFM

BALTBInnovator Defined Wealth Shield ETF

PSFMBPacer Swan SOS Flex (April) ETF

In short

BALT Most buffer ETFs hand you a cushion once a year. BALT rebuilds a 20% one every three months: four fresh starts against S&P 500 drawdowns. The trade-off is that the cap resets with it, and it starts low.

PSFM A one-year hedge on the S&P 500, reset every April: PSFM buffers the first 20% of the SPDR S&P 500 ETF Trust's losses and gives up gains above a cap set at each period's start. At 0.49%, it undercuts most 20%-buffer rivals.

Stated mandate

BALT The fund seeks to track the return of SPDR S&P 500 ETF Trust (SPY), subject to a cap, while buffering investors against losses. It targets a 20% buffer during each three-month outcome period and resets quarterly.

PSFM The Fund seeks to match the SPDR S&P 500 ETF Trust’s return before fees and expenses, subject to a predetermined upside cap, while providing a downside-loss buffer over approximately one year.

Why people hold it

• BALT Deep and short-dated: it targets a 20% buffer against losses in the S&P 500 ETF it references, over a three-month outcome period, then resets for the next quarter.innovatoretfs.com
• 0.69% a year, under the typical fee in its deep-buffer group, and it has been running the quarterly reset since launching in 2021.
• One of the larger funds doing 20% buffers on the S&P 500, and one of the strongest implementations in that peer group.

• PSFM Charges 0.49% a year against a 0.74% median for its 20%-buffer peer group, matching the cheapest fee in the Pacer Swan lineup and undercutting rivals like APRW and JUNW at 0.74%.
• The 20% buffer is deep for the category: it absorbs the first fifth of a decline in the SPDR S&P 500 ETF Trust over the roughly one-year outcome period, before fees and expenses.paceretfs.com
• Top-quartile standing in its deep-buffer cohort, and April is one of several Pacer Swan start months (PSFJ runs July), so entry dates can be staggered across the calendar.paceretfs.com

Worth knowing

• BALT A deep buffer over a short window buys a low ceiling. The cap is set fresh each three-month period, and it is far tighter than what annual buffer funds start with.
• The 20% cushion is measured from the start of each outcome period. Buy mid-quarter and the buffer and cap you actually own differ from the headline terms.innovatoretfs.com
• Cheaper 20% buffer options exist: PBFR at 0.50%, Pacer's Swan SOS Flex funds (PSFJ, PSFM) at 0.49%.

• PSFM Upside is capped, and the cap is set fresh at the start of each April period, so the ceiling for a given year is not known in advance and changes from period to period.paceretfs.com
• Buffer and cap are designed to work over the full outcome period. Mid-period buyers get a different effective cap and remaining buffer than the headline terms.paceretfs.com
• One of the smaller, more thinly traded funds in its category, so spreads can run wider than at the largest buffer shops, and income is not part of the design.

Full BALT profile⁠

Full PSFM profile⁠