The Pacer Swan SOS Flex (October) ETF (PSFO) is an equity ETF with $0.04 billion in assets under management. Launched in September 2021, PSFO aims to replicate the returns of the SPDR S&P 500 ETF Trust, subject to a predetermined upside cap and a downside risk mitigation buffer over an approximate one-year period. With an expense ratio of 0.61%, PSFO offers a unique approach to S&P 500 exposure by combining capped upside potential with downside protection.
The Pacer Swan SOS Flex (October) ETF (PSFO) is an equity ETF with $0.04 billion in assets under management. Launched in September 2021, PSFO aims to replicate the returns of the SPDR S&P 500 ETF Trust, subject to a predetermined upside cap and a downside risk mitigation buffer over an approximate one-year period. With an expense ratio of 0.61%, PSFO offers a unique approach to S&P 500 exposure by combining capped upside potential with downside protection.
ETF Overview
An exchange traded fund (ETF) that seeks to match returns, before fees and expenses, of the SPDR S&P 500 ETF Trust (the “underlying ETF”) up to a predetermined upside cap (the “Cap”), while also providing a downside risk mitigation buffer (the “Buffer”) over an approximate one-year period.
The Pacer Swan SOS Flex (October) ETF (PSFO) seeks to provide investors with exposure to the SPDR S&P 500 ETF Trust while incorporating both an upside cap and a downside buffer. This strategy is designed to allow investors to participate in market gains up to a certain level, while also mitigating potential losses during market downturns. The fund achieves this through a combination of investments, primarily holding shares of the SPDR S&P 500 ETF Trust. As of today, the fund's sector allocation is heavily weighted towards Technology at 33.1%, followed by Financial Services at 12.3%, and Communication Services at 10.7%. Other significant sector allocations include Consumer Cyclical (10.1%), Healthcare (9.8%), and Industrials (8.7%). The fund's investment approach may appeal to investors seeking a balance between growth potential and risk management within the equity market. The fund's country exposure is entirely in 'Other' at 100%.
Risk Metrics
PSFO's risk profile is shaped by its capped upside and buffered downside strategy. While the downside buffer aims to mitigate losses, the upside cap limits potential gains in strongly performing markets. The fund's sector allocation introduces concentration risk, particularly with its significant weighting in Technology (33.1%). A downturn in the technology sector could disproportionately impact PSFO's performance. The fund's 3-year beta of 0.54 indicates lower volatility compared to the broader market. The expense ratio of 0.61% also creates a drag on performance, which is important to consider when evaluating long-term returns. Investors should carefully consider these factors in relation to their own risk tolerance and investment objectives. Past performance does not guarantee future results.
PSFO, or the Pacer Swan SOS Flex (October) ETF, is an exchange-traded fund that aims to replicate the returns of the SPDR S&P 500 ETF Trust, while also providing a downside risk mitigation buffer and an upside cap. The fund seeks to match the performance of the S&P 500, up to a predetermined cap, while also protecting against potential losses over an approximate one-year period. This strategy is designed for investors who want exposure to the S&P 500 but are also concerned about managing downside risk. The ETF was incepted in September 2021 and has an AUM of $0.04 billion.
What is the expense ratio for PSFO?
The expense ratio for PSFO is 0.61%. This means that for every $10,000 invested in the fund, $61 is charged annually to cover the fund's operating expenses. While this expense ratio provides the benefits of a downside buffer and upside cap, it is important to consider the cost relative to other ETFs. The category average expense ratio for equity ETFs is approximately 0.44%, making PSFO more expensive than the average equity ETF.
What are the top holdings in PSFO?
As a fund that seeks to match the returns of the SPDR S&P 500 ETF Trust, PSFO's primary holding is the SPDR S&P 500 ETF Trust. As of today, the fund holds 7 assets. The sector allocation is as follows: Technology (33.1%), Financial Services (12.3%), and Communication Services (10.7%). These sectors represent the largest allocations within the fund's portfolio, reflecting the composition of the S&P 500 index. Investors should be aware of these top sector allocations when considering PSFO.
Is PSFO a good long-term investment?
Whether PSFO is a suitable long-term investment depends on an investor's individual circumstances and risk tolerance. The fund's strategy of providing a downside buffer and an upside cap may be attractive to investors seeking to manage risk. However, the 0.61% expense ratio should be considered, as it can impact long-term returns. The fund's 3-year beta of 0.54 suggests lower volatility compared to the broader market. Past performance does not guarantee future results, and investors should carefully evaluate their own investment goals before investing.
How does PSFO compare to similar ETFs?
PSFO differentiates itself through its unique strategy of combining a downside buffer with an upside cap, offering a blend of risk management and potential growth. Compared to broad-market ETFs like SPY, PSFO aims to provide downside protection, which SPY does not. However, SPY has a much lower expense ratio. PSFO's expense ratio of 0.61% may be higher than some other ETFs with similar objectives. With AUM of $0.04 billion, PSFO is smaller than SPY, which may impact liquidity and trading costs. Investors should compare the specific buffer and cap levels, expense ratios, and liquidity of different ETFs to determine the best fit for their needs.
Does PSFO pay dividends?
According to the latest data, PSFO has a dividend yield of 0.00%. This indicates that the fund does not currently distribute dividends to its shareholders. Investors seeking income-generating investments may want to consider other ETFs with a higher dividend yield. The fund's focus is primarily on capital appreciation with downside protection, rather than income generation.