LOCT vs PSMR

LOCTCInnovator Premium Income 15 Buffer ETF

PSMRBPacer Swan SOS Moderate (April) ETF

In short

LOCT Most buffer funds trade your upside for a capped shot at growth. LOCT trades it for income: a defined distribution rate paid monthly, with the first 15% of SPY's losses absorbed over each 12-month outcome period.

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

LOCT The Fund seeks performance equal to its Defined Distribution Rate for each Outcome Period while protecting against the first 15% of SPY losses during each 12-month 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

• LOCT Income-first design. The fund seeks performance equal to its stated Defined Distribution Rate for each outcome period, and it pays monthly rather than hoarding returns for the reset.
• The first 15% of SPY losses in each 12-month outcome period is absorbed by the structure, and the terms reset every October like clockwork.
• The 0.79% fee sits right at the median for its buffer peer group and matches Innovator's Power Buffer siblings (POCT, PJUL) for the same wrapper work.
• Built as a 1940 Act fund, not a bank-issued note, so the defined outcome doesn't ride on a single issuer's balance sheet.

• 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

• LOCT Upside is defined, not open-ended. The target is the distribution rate, so a roaring year in SPY doesn't flow through as extra return.
• Small asset base and thin trading. Limit orders and a glance at the spread matter more here than with a mainstream index fund.
• The buffer is measured from the start of the October outcome period. Buy mid-period and you inherit whatever protection is left, not a fresh 15%.

• 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 LOCT profile⁠

Full PSMR profile⁠