PSMJ vs XOCT

PSMJBPacer Swan SOS Moderate (July) ETF

XOCTCFT Vest U.S. Equity Enhance & Moderate Buffer ETF - October

In short

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.

XOCT Most buffer funds hand over upside to buy protection. This one leans the other way: roughly 2x the price move of the S&P 500 ETF it references, up to a yearly cap, with the first 15% of losses cushioned. October is its reset month.

Stated mandate

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.

XOCT The Fund seeks approximately twice the positive price return of the State Street® SPDR® S&P 500® ETF Trust, subject to a 10.26% upside cap and protection against the first 15% of losses during the current outcome period.

Why people hold it

• 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

• XOCT Double-speed upside, not half: the fund aims for about twice the positive price return of its S&P 500 ETF reference, up to a cap set for each one-year period.cboe.com
• The first 15% of reference losses is absorbed over the outcome period, so ordinary market chop lands on the buffer before it lands on you.ftportfolios.com
• The rules are written in advance. FLEX options on the S&P 500 ETF lock the cap and buffer for the October-to-October stretch, so the terms are known before you commit.cboe.com
• One rung of a 12-month ladder: First Trust runs an Enhance & Moderate Buffer fund for every calendar month, and this is the October start line.ftportfolios.com

Worth knowing

• 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

• XOCT 0.85% a year runs above the typical fee in its buffer peer group, and laddered rivals like BUFF charge a fraction of that.
• Upside has two ceilings: gains stop at the period's cap, and the mandate follows price return, so the reference ETF's dividends don't flow through.
• Built for full-period holders and thinly traded. Buy partway through the October cycle and your effective cap and remaining cushion differ from the headline terms.

Full PSMJ profile⁠

Full XOCT profile⁠