NVBW vs PSFO

NVBWCAllianzIM U.S. Equity Buffer20 Nov ETF

PSFOBPacer Swan SOS Flex (October) ETF

In short

NVBW An insurance hedging desk in ETF form: NVBW absorbs the first 20% of a year's losses in the SPDR S&P 500 ETF Trust, and in exchange your upside stops at a cap reset each November.

PSFO Pacer's October-dated buffer fund absorbs the first 20% of an S&P 500 drop over each 12-month period, in exchange for a ceiling on the upside. At 0.49%, it charges less than the typical fund in its buffer peer group.

Stated mandate

NVBW The Fund seeks to track the share-price returns of the SPDR® S&P 500® ETF Trust over its one-year Outcome Period up to an upside cap, while buffering the first 20% of losses in the Underlying ETF.

PSFO The fund seeks to match the pre-fee and pre-expense returns of the SPDR S&P 500 ETF Trust.

Why people hold it

• NVBW The 20% buffer is at the deep end of the buffer shelf, and it resets on a fresh one-year clock every November.allianzim.com
• AllianzIM runs the options itself, on the same in-house hedging platform Allianz Life uses for its annuity book, instead of outsourcing the trade.allianzlife.com
• At 0.74%, the fee sits right at the middle of its deep-buffer peer group. No premium for the Allianz name.
• Live since 2022, with multiple full outcome periods completed.

• PSFO 0.49% a year, below the median fee in its S&P 500 buffer cohort and well under peers like PMAY (0.79%) and BUFZ (0.95%).
• Built to absorb the first 20% of a decline in the SPDR S&P 500 ETF Trust (SPY) over each outcome period before the fund itself starts taking losses.
• A 1940 Act ETF holding its own option package, not a bank-issued note, so no third-party credit sits between you and the payoff. Running since 2021.
• Rates in the upper tier of a two-dozen-fund group of S&P 500 buffer strategies, largely on price.

Worth knowing

• NVBW Buffer and cap apply in full only if you hold from the start of the November outcome period to its end. Buy mid-period and your terms differ.allianzlife.com
• Cheaper deep-buffer alternatives exist: PSFJ and PSFM both charge 0.49%.
• You track SPY's share-price returns, so dividends aren't part of the deal, and the fund trades lightly enough that limit orders matter.

• PSFO The price of the cushion: gains stop at a cap fixed at the start of each period, and the fund hasn't been an income payer.
• Buffer and cap are engineered for the full October 1 to September 30 stretch. Buy mid-period and your real cushion and ceiling differ from the headline terms.
• Small asset base and light trading, which usually means wider spreads and more attention needed on how orders get entered.

Full NVBW profile⁠

Full PSFO profile⁠