GSEP vs PSMR

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

PSMRBPacer Swan SOS Moderate (April) 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.

PSMR A 15-point cushion on SPY, reset every April, for 0.49% a year while the typical buffer fund charges more. Pacer and Swan's moderate tier trades away some upside (a cap set each period) for a floor you know going in.

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.

PSMR The Fund seeks to match 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.

• PSMR Charges 0.49% a year against a 0.79% median in its buffered-SPY cohort, and undercuts Pacer's own single-month siblings like PJUL and POCT at 0.79%.
• The contract is spelled out: a 15-point buffer against SPDR S&P 500 ETF Trust losses over roughly a one-year period, with upside capped at a level set when the period begins.paceretfs.com
• Terms reset on April 1 each year, so the new buffer and cap arrive on a known calendar date instead of whenever you happened to buy in.paceretfs.com
• Running since 2021, so this April series has cycled through several complete outcome periods rather than being a fresh launch with a paper track record.

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.

• PSMR Thinly traded next to the biggest names in buffer land, so spreads and order size are worth a look before you place a trade.
• The cap cuts both ways: big SPY years get trimmed, and the stated buffer and cap only line up in full for a holder who rides one April reset to the next.
• Not an income vehicle. It has not been paying a regular distribution, so whatever the strategy delivers shows up in the share price.

Full GSEP profile⁠

Full PSMR profile⁠