OCTW vs PSFO

OCTWCAllianzIM U.S. Equity Buffer20 Oct ETF

PSFOBPacer Swan SOS Flex (October) ETF

In short

OCTW A 20% buffer against S&P 500 price losses over a 12-month stretch that resets every October 1, built by Allianz Life's investment arm. Deep-end downside protection, paid for with a cap and no dividends.

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

OCTW The Fund seeks to match the S&P 500 Price Index over a complete one-year outcome period, subject to an upside cap, while buffering the first 20% of index losses.

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

• OCTW Buffers the first 20% of S&P 500 price-index losses over each 12-month outcome period, the deep end of the buffer range, with the clock resetting every October 1.
• Run by the investment arm of Allianz Life, which builds and manages the hedge in-house, and has been resetting this October series since 2020.allianzlife.com
• The 0.74% fee sits right at the median for deep-buffer funds, and the overall build ranks in the upper half of that peer group.

• 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

• OCTW The upside is capped, and a fresh cap is set each October based on market conditions. Full buffer and full cap apply only if you hold the whole outcome period.allianzim.com
• The reference is the S&P 500 price index, which excludes reinvested dividends, and the fund has not been paying distributions.allianzim.com
• Cheaper 20% buffer wrappers exist, including PBFR at 0.50% and PSFJ at 0.49%.

• 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 OCTW profile⁠

Full PSFO profile⁠