Pacer Swan SOS Fund of Funds ETF

Pacer Swan SOS Fund of Funds ETF (PSFF) is an actively managed fund that owns a dozen other Pacer Swan ETFs. Each of those funds uses options to cushion losses in US stocks, and in return it caps how much it can gain. PSFF's 0.72% expense ratio was the lowest of eight buffer funds compared. However, it pays no income and trailed most of those peers over one and three years.

• Over the year to Oct 27, 2026, PSFF returned +10.8%, 6th of 8 among similar funds.
• Its 5-year annualized return was +9.5%.
• Its worst full calendar year was 2022 (-4.1%); its best was 2023 (+18.4%).
• The deepest fall in its price history was 10.8% (Feb 20, 2025 to Apr 8, 2025), recovered by Jun 24, 2025.

As of Jul 31, 2026, the fund held 12 securities; the ten largest made up 92.19% of assets.

• Over the three months to Jul 31, 2026, investors added a net $9.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +1.79%, +0.24%, +0.61%.

PSFF does not track an index. Its adviser is Pacer Advisors, and its sub-adviser, Swan Global Management, picks other ETFs run by the two firms. As of July 31, 2026, about 99.6% of the fund sat in 12 such ETFs and 0.77% was in cash. The four largest holdings were all from Swan's Moderate series: PSMO (14.6%), PSMJ (13.7%), PSMD (13.6%) and PSMR (13.2%). Conservative and Flex series funds made up most of the rest.

These underlying funds use a "structured outcome" strategy, also called a buffer strategy. They hold FLEX Options, which are customizable options traded on an exchange, with settlement guaranteed by the Options Clearing Corporation. Over a fixed period, such as one year, each fund aims to match its reference asset's gains up to a cap. It also aims to absorb losses up to a set buffer, such as 15%, before fees. Once losses go past the buffer, the fund takes them in full.

Timing matters. Shares bought partway through a period can give very different results from the stated cap and buffer. PSFF holds series named for January, April, July and October, which spreads out those start dates. Swan may switch to a different ETF if it offers more protection or upside for a similar or lower cost. The buffers are not guaranteed, and the fund pays fees at two levels: its own and those of the funds it owns.

• PSFF charges 0.72% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
• Of that, 0.12% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $74 in the first year and $894 over 10 years (assuming a 5% annual return).

PSFF owns only buffered US stock strategies and has moved far less than the stock market, with a one-year beta of 0.41 as of October 27, 2026 (beta measures how much a fund tends to move when the market moves).

PSFF launched in December 2020, so it has no record from the 2008 crisis or the 2020 COVID crash. In the 2022 bear market, it fell 10.5% from January 4 to June 16, 2022. It recovered by February 2, 2023, about 7.6 months later. Its 2022 return of -4.03% was its only losing calendar year. Its deepest drop, 10.8%, ran from February 20 to April 8, 2025, and it recovered in about 2.5 months. Shallow dips mean less pressure on someone who must sell shares in a bad year. But buffers have limits, and caps mean the fund lags in strong rallies. It made no distributions in the year through October 27, 2026, so any cash would have to come from selling shares. Its 0.72% expense ratio is below the 0.86% average of comparable buffer funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by other buffer (defined-outcome) funds, largest first.