BSTP vs SWAN

BSTPDInnovator Buffer Step-Up Strategy ETF

SWANBAmplify BlackSwan Growth & Treasury Core ETF

In short

BSTP Most buffer ETFs freeze your cap and buffer for a full year. BSTP is the active version: FLEX options on SPY that the manager can reset monthly, so the terms follow the market rather than a calendar.

SWAN The buffer fund that isn't one. Rather than a yearly reset and a capped ceiling, SWAN holds roughly 90% U.S. Treasuries and spends the other 10% on in-the-money S&P 500 call options, aiming for uncapped index exposure with a bond core underneath.

Stated mandate

BSTP BSTP seeks risk-managed exposure to SPY through FLEX options and may invest directly in SPY or its components. It actively monitors and may reset the options portfolio monthly, seeking participation in SPY returns with an upside limit and protection against a measure of downside loss.

SWAN The fund seeks to track the S-Network BlackSwan Core Index while pursuing uncapped S&P 500 exposure and buffering against significant losses. Its strategy uses approximately 90% U.S. Treasury securities and 10% SPY in-the-money call options.

Why people hold it

• BSTP No 12-month lock. The manager monitors the options book and can reset it monthly, seeking SPY participation with a limit on the upside and protection against a measure of downside loss.
• The step-up design lets the options be re-struck as SPY moves, instead of leaving the fund anchored to a reference level set at the start of a long outcome period.
• One ticker, no calendar to babysit: the resetting happens inside the fund, which can also hold SPY or its underlying stocks directly alongside the options.
• Live since 2022, so the strategy has run through real market stress rather than a backtest.

• SWAN Cheapest in its peer group at 0.49%, against a 0.79% median for buffer-style rivals such as BAPR (0.79%) and BUFR (0.95%).
• No ceiling on gains. Defined-outcome funds sell away upside above a cap; SWAN's in-the-money SPY calls are built to leave the index climb uncapped.amplifyetfs.com
• No outcome period to track: no annual reset date, no entry-timing math, no cap that expires and resets.amplifyetfs.com
• Running the same recipe since 2018, through live market stress rather than backtests, and it stands among the stronger builds in its peer group.

Worth knowing

• BSTP The 0.89% expense ratio sits at the pricier end of SPY buffer funds. Innovator's dated series on the same reference, such as PMAY, lists 0.79%.
• Thinly traded, so bid-ask spreads can run wider than in the largest buffer names.
• Flexibility cuts both ways: with terms able to change at each reset, the cap and buffer in force aren't readable off a calendar and need checking against the fund's posted terms.

• SWAN The cushion isn't a stated number. Unlike a named-depth buffer fund (FEBT, DMAX), SWAN's downside comes from Treasuries plus option value, so it moves with markets.amplifyetfs.com
• About 90% of the portfolio is Treasuries, so interest-rate moves drive results as much as the S&P 500 does.amplifyetfs.com
• A small, thinly traded fund, so bid-ask spreads deserve more attention than with the giant buffer names.

Full BSTP profile⁠

Full SWAN profile⁠