POCT vs PSMR

POCTCInnovator U.S. Equity Power Buffer ETF

PSMRBPacer Swan SOS Moderate (April) 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.

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

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.

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

• 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.

• 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

• 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

• 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 POCT profile⁠

Full PSMR profile⁠