Pacer launched a new set of funds co-managed by Swan Global Investments with three new defined outcome ETFs: the Pacer Swan SOS Conservative (July) ETF (PSCJ), the Pacer Swan SOS Moderate (July) ETF (PSMJ) and the Pacer Swan SOS Flex (July) ETF (PSFJ).
The three funds track the SPDR S&P 500 ETF Trust (SPY), but use FLEX options to provide downside protection at the cost of a cap on gains through the end of June 2022. The new products include the following:
- PSCJ caps potential gains at 7.15% after fees and expenses, and protects against losses of more than 5%, up to 30%.
- PSMJ caps gains at 7.95% after expenses while protecting against the first 15% of losses.
- PSFJ caps gains at 11.30% after fees and uses a hybrid buffer strategy. Investors are fully protected if SPY drops up to 20% in the investment period. However, after it hits the 20% buffer, the fund will decline 2% for every 1% decline in SPY up to a loss of 40%.
All three of the funds come with a 0.75% expense ratio.
Pacer launched its first round of buffer ETFs at the end of 2020, followed by another series in April:
- Pacer Swan SOS Conservative (December) ETF (PSCX)
- Pacer Swan SOS Moderate (December) ETF (PSMD)
- Pacer Swan SOS Flex (December) ETF (PSFD)
- Pacer Swan SOS Conservative (April) ETF (PSCW)