GSEP vs PSMJ

GSEPCFT Vest U.S. Equity Moderate Buffer ETF - September

PSMJBPacer Swan SOS Moderate (July) ETF

In short

GSEP A one-year hedge on a September clock: GSEP absorbs the first 15% of the decline in the big S&P 500 ETF it references, and trades that cushion for a cap on the upside. It's the September rung of First Trust's twelve-month moderate buffer ladder.

PSMJ Pacer's July-dated stop on the Swan SOS ladder: FLEX options on SPY that buffer the first 15% of a fall over a roughly one-year period, with upside capped in return. At 0.49%, it undercuts most of the buffer aisle.

Stated mandate

GSEP The Fund seeks to match the price return of the State Street® SPDR® S&P 500® ETF Trust, subject to a predetermined upside cap and protection against the first 15% of losses during the stated outcome period.

PSMJ The Fund seeks to track the returns of the SPDR S&P 500 ETF Trust up to a predetermined cap while providing a downside buffer over an approximately one-year period.

Why people hold it

• GSEP The cushion is written into the strategy, not left to a manager's judgment: the first 15% of the reference ETF's price decline over the outcome period is absorbed by the options package.ftportfolios.com
• Eleven dated siblings (GJAN through GDEC) run the same 15% recipe on different start months, so entries can be staggered instead of hinging on one September reset.
• It references SPY itself rather than an index, and holds a few hundred million dollars with steady two-way trading, so getting in and out is among the smoother experiences in its buffer group.

• PSMJ Charges 0.49% a year against a 0.79% median for its buffered-SPY cohort, the same 0.79% Innovator's Power Buffer funds (PJUL, PJAN, POCT) charge for a similar job.
• The deal is legible: FLEX options on SPY absorb the first 15% of a decline over the outcome period, and match the ETF's gains up to a cap struck each July.paceretfs.compaceretfs.com 2
• Those FLEX options are customizable exchange-traded contracts settled through the Options Clearing Corporation, and Durango-based Swan Global Management sub-advises the strategy.paceretfs.com
• One of four Moderate-series funds with staggered start months (PSMD, PSMR, PSMJ, PSMO), so a July reset can be stacked against other entry points rather than standing alone.paceretfs.com

Worth knowing

• GSEP 0.85% a year, above what the typical fund in this buffer group charges. That fee comes out of an upside that is capped to begin with.
• The mandate follows SPY's price return, so S&P 500 dividends are not part of your return. That forgone income is part of what funds the buffer.
• Buffer and cap are set for a full outcome period, September to September. Buy mid-period and you get whatever cushion and headroom remain, not the headline terms.

• PSMJ The 15% buffer and the cap belong to the full outcome period. Step in mid-period and you inherit whatever cap and buffer remain, not the starting terms.paceretfs.com
• Thinly traded next to the largest buffer funds, so spreads and limit orders deserve more of your attention at the point of entry.
• No regular income stream here: the options structure delivers its result through share price rather than distributions.paceretfs.com

Full GSEP profile⁠

Full PSMJ profile⁠