POCT vs PSMJ

POCTCInnovator U.S. Equity Power Buffer ETF

PSMJBPacer Swan SOS Moderate (July) ETF

In short

POCT October's slot in Innovator's Power Buffer lineup: S&P 500 exposure with the first 15% of a drop absorbed, in exchange for an upside cap set fresh each October 1. Same machinery as its sibling months, different start date.

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

POCT The Fund seeks to track the return of the SPDR S&P 500 ETF Trust (SPY), subject to a predetermined cap, while protecting against the first 15% of losses during the 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

• POCT Absorbs the first 15% of a one-year decline in the S&P 500 tracker it references (before fees), then resets every October 1 and can be held indefinitely.innovatoretfs.com
• FLEX options do the work inside a plain 1940 Act ETF: exchange-traded, no K-1, none of the bank credit risk that comes with a structured note.innovatoretfs.com
• Sits in the upper tier of the buffer funds we track, helped by trading that holds up well for an options-based product and a fee in line with the category.
• Running since 2018 with a full set of monthly siblings behind it, plus a laddered version (BUFF) that spreads across start months instead of picking one.

• 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

• POCT The cap is set on the first day of each October period and depends on conditions then. Gains above it don't accrue, and the 0.79% fee trims both cap and buffer.innovatoretfs.com
• Buy mid-period and you inherit whatever buffer and cap remain, not the headline terms. The outcomes are engineered for a full October-to-October hold.innovatoretfs.com
• Exposure comes through options rather than shares, so index dividends don't show up as income; the fund isn't built as a payer.innovatoretfs.com

• 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 POCT profile⁠

Full PSMJ profile⁠