DSEP vs PSCQ

DSEPCFT Vest U.S. Equity Deep Buffer ETF - September

PSCQBPacer Swan SOS Conservative (October) ETF

In short

DSEP The deep-buffer version of owning the S&P 500: DSEP absorbs the first 5% of a drop itself, then shields losses down to -30% over its one-year September period, in exchange for a capped upside.

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

DSEP The Fund seeks to match the price return of the State Street® SPDR® S&P 500® ETF Trust before fees, subject to an 11.43% upside cap and protection against Underlying ETF losses between -5% and -30% during the stated 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

• DSEP Deeper cover than a standard buffer fund: 25 points of downside protection, from -5% to -30% of the underlying S&P 500 ETF's price return, over each one-year outcome period.ftportfolios.com
• September is one rung in First Trust's twelve-month deep buffer ladder (DMAR, DJUN, DDEC and the rest), so start dates can be staggered instead of hinging on one calendar month.
• Running since 2020, with five-plus years of resetting cap and buffer each September, and a 0.85% fee that sits right at the median for deep-buffer funds.

• 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

• DSEP The shield starts only after a 5% decline, so everyday dips land in full, and the upside cap is reset each September at whatever the options market will pay.
• 0.85% is above the cheapest end of the category: Pacer's Swan SOS Conservative funds (PSCX, PSCW, PSCQ) run 0.49%.
• Thinly traded and built for price return, not income, so limit orders are worth using and there is no regular distribution stream.

• 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 DSEP profile⁠

Full PSCQ profile⁠