DDEC vs PSCQ

DDECCFT Vest U.S. Equity Deep Buffer ETF - December

PSCQBPacer Swan SOS Conservative (October) ETF

In short

DDEC The deep-buffer version of the trade: DDEC lets the first 5% of an S&P 500 slide go, then absorbs the next 25 points of losses down to a 30% drop, in exchange for a capped upside that resets every December.

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

DDEC The Fund seeks to match the Underlying ETF’s price return up to an upside cap of 11.96%, while buffering losses in the range from 5% through 30% below the initial level 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

• DDEC Deep, not standard. The first 5% of decline stays with you, then the fund cushions the next 25 points, covering losses down to 30% over the outcome period.ftportfolios.com
• The reference asset is the SPDR S&P 500 ETF Trust, so the thing being hedged is plain large-cap US equity, and the payoff follows its price return.
• One of twelve dated siblings, one per calendar month. The December reset lets holders stagger entry points across the series instead of betting on a single start date.
• Live since 2020, so the structure has run through multiple complete reset cycles rather than one untested stretch.

• 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

• DDEC 0.85% a year sits right at the deep-buffer median, but Pacer's conservative structured-outcome funds (PSCX, PSCW) charge 0.49% for a defensive brief in the same cohort.
• Upside is capped and the cushion only starts after a 5% drop. Both terms are set for the one-year period, so buying mid-period changes the cushion and ceiling you actually get.
• It trades lightly next to the category's largest funds, which can widen the spread between market price and underlying value at the moment of a trade.

• 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 DDEC profile⁠

Full PSCQ profile⁠