DAUG vs PSCQ

DAUGCFT Vest U.S. Equity Deep Buffer ETF - August

PSCQBPacer Swan SOS Conservative (October) ETF

In short

DAUG Insurance with a deductible. DAUG bears the first 5% of an S&P 500 slide, then absorbs the next 25 points of losses, and in exchange your upside is capped at a level reset every August. Running since 2019.

PSCQ A deep buffer with a deductible: you take the first 5% of an S&P 500 slide, then the next 25 points get cushioned, up to a cap reset each October. At 0.49% a year, it is a low-cost way to run that trade.

Stated mandate

DAUG The Fund seeks to match the price return of the State Street SPDR S&P 500 ETF Trust before fees and expenses, subject to an 11.98% upside cap and protection for losses in the -5% to -30% range during the current outcome period.

PSCQ The Fund seeks to match the returns of the SPDR S&P 500 ETF Trust before fees and expenses up to a predetermined cap while providing a downside buffer over approximately one year.

Why people hold it

• DAUG The cushion sits where drawdowns bite: SPY losses between -5% and -30% are absorbed, a 25-point buffer, before losses pass through one-for-one again.sec.gov
• Twelve siblings run the same deep-buffer recipe on a monthly cycle (DJAN through DDEC), so you can pick a reset month or spread money across several start dates.
• Terms are knowable up front: the new cap is set at each August reset, disclosed in a filing and posted to the fund's site before the period begins.sec.gov
• Live since 2019, so this August reset has been rolled through real market stress rather than a backtest.

• PSCQ 0.49% a year, at the cheap end of the SPY deep-buffer group. In a capped strategy, fees come straight out of the upside you are allowed to keep.
• Real depth of cushion: underlying losses from 5% down to 30% are absorbed by the options package, 25 percentage points of protection across a full one-year outcome period.paceretfs.com
• October start date. Pacer runs the same conservative recipe in January, April and July windows, so you choose which twelve months (and which cap) you live with.
• Plain plumbing: FLEX options on the SPDR S&P 500 ETF Trust, no stock picking, no leverage. It sits in the upper half of its deep-buffer peer group.paceretfs.com

Worth knowing

• DAUG The reference is SPY's price return, so S&P 500 dividends are not part of what you capture. That is part of what the buffer costs.sec.gov
• Buffer and cap are designed for the full outcome period. Buy midstream and your own remaining cushion and upside differ from the headline terms.sec.gov
• 0.85% matches the deep-buffer cohort median, while Pacer's SOS conservative funds (PSCX, PSCW) charge 0.49%. Volume is light here, so spreads can run wider.

• PSCQ The cap is the price of the cushion. Upside stops at a level set when the October period begins, so a roaring S&P year leaves money on the table.
• The 5% to 30% math is built for holders of the full period. Buy mid-period and your effective buffer and cap depend on the price you pay.paceretfs.com
• A small fund that trades thinly, so spreads can run wider than on big index ETFs. It holds options, not dividend payers, so income is not part of the design.

Full DAUG profile⁠

Full PSCQ profile⁠