PSFM vs PSFO

PSFMBPacer Swan SOS Flex (April) ETF

PSFOBPacer Swan SOS Flex (October) ETF

In short

PSFM A one-year hedge on the S&P 500, reset every April: PSFM buffers the first 20% of the SPDR S&P 500 ETF Trust's losses and gives up gains above a cap set at each period's start. At 0.49%, it undercuts most 20%-buffer rivals.

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

PSFM The Fund seeks to match the SPDR S&P 500 ETF Trust’s return before fees and expenses, subject to a predetermined upside cap, while providing a downside-loss buffer over approximately one year.

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

• PSFM Charges 0.49% a year against a 0.74% median for its 20%-buffer peer group, matching the cheapest fee in the Pacer Swan lineup and undercutting rivals like APRW and JUNW at 0.74%.
• The 20% buffer is deep for the category: it absorbs the first fifth of a decline in the SPDR S&P 500 ETF Trust over the roughly one-year outcome period, before fees and expenses.paceretfs.com
• Top-quartile standing in its deep-buffer cohort, and April is one of several Pacer Swan start months (PSFJ runs July), so entry dates can be staggered across the calendar.paceretfs.com

• 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

• PSFM Upside is capped, and the cap is set fresh at the start of each April period, so the ceiling for a given year is not known in advance and changes from period to period.paceretfs.com
• Buffer and cap are designed to work over the full outcome period. Mid-period buyers get a different effective cap and remaining buffer than the headline terms.paceretfs.com
• One of the smaller, more thinly traded funds in its category, so spreads can run wider than at the largest buffer shops, and income is not part of the design.

• 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 PSFM profile⁠

Full PSFO profile⁠