At a glance
PSFM charges 0.6% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $25.4M in assets, the 8th largest of that group. Over the past year it returned +14.3% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +15.4% a year. At its worst it fell 14.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 12 months after the low.
The short version
Pacer Swan SOS Flex (April) ETF (PSFM) uses options on the SPDR S&P 500 ETF Trust (SPY) to cushion losses and cap gains over yearly periods starting April 1. For the period ending March 31, 2026, it aimed to absorb SPY's first 20% of losses, fading to no cushion at a 40% drop, with gains capped at 13.35% after fees. Its 0.60% annual expense ratio undercuts the 0.86% average of seven similar buffer funds.
Price history
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PSFM +14.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| PSFM official prospectus, to Dec 31, 2025 | — | +7.02% | — | — | — | +9.60% |
| PSFM price data to Oct 27, 2026 | +12.9% | +14.3% | +15.4% | +9.6% | — | +10.4% |
- Over the year to Oct 27, 2026, PSFM returned +14.3%, 1st of 8 among similar funds.
- Its 5-year annualized return was +9.6%.
- Its worst full calendar year was 2022 (-5.2%); its best was 2023 (+18.3%).
- The deepest fall in its price history was 14.3% (Mar 29, 2022 to Jun 16, 2022), recovered by Jun 1, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +12.9% | — |
| 2025 | +7.3% | +7.02% |
| 2024 | +14.2% | +14.48% |
| 2023 | +18.3% | +18.23% |
| 2022 | -5.2% | -4.97% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 12.5% over that stretch · deepest drop along the way 14.3%, back to its old high 11.5 months after the low |
What's inside
As of Jul 31, 2026, the fund held 0 securities; the ten largest made up 0% of assets.
| Holding | Weight |
|---|
By country
By asset type
What changed recently
- Over the three months to Jul 31, 2026, investors added a net $2.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.85%, +0.10%, +0.70%.
How it works
PSFM is an actively managed ETF from Pacer Advisors that owns no stocks and tracks no index. Instead, it holds FLEX options, exchange-listed options with customized strike prices and expiration dates, on the SPDR S&P 500 ETF Trust (SPY). As of July 31, 2026, it held five SPY option positions. The largest, a call option (which gains as SPY rises) with a very low strike price, equaled about 105% of net assets and moves much like SPY. The other options create the buffer and cap.
For the April 1, 2025 to March 31, 2026 period, the targets had three parts. Gains would match SPY's price gains up to a cap of 13.95% before fees (13.35% after). The result would be flat, before fees, if SPY fell by up to 20%. The buffer would then shrink as SPY's losses went from 20% to 40%, after which the fund falls one-for-one. Because the targets use SPY's share price, they exclude its dividends.
Each April 1, the fund resets with new options and a new cap set by market conditions. The targets apply only to shares held for a full period. Investors who enter or exit mid-period may see very different results. Before expiration, the options are valued at market prices, so the fund can fall even when SPY's loss is within the buffer.
What it really costs
- PSFM charges 0.6% a year, versus an average of 0.86% for the similar funds below (1st of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $61 in the first year and $750 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| PSFM | $61 | $192 | $335 | $750 |
Structure and tax notes
- Organized as a unit investment trust: it cannot lend out its securities or reinvest dividends between payouts, which can create a small drag versus similar open-end ETFs.
- Uses options to limit losses within a range (the buffer) in exchange for a cap on gains over each outcome period; results depend on when you buy relative to the period start.
In a retirement portfolio
It aims to capture SPY's price gains up to a cap while absorbing the first 20% of losses over each April-to-March period, giving up some upside for a cushion.
PSFM could add stock exposure with a cushion against moderate losses. It launched in March 2021, so it has no record from the 2008 or 2020 crashes. In the 2022 bear market it fell 14.3% from its March 29 peak to its June 16 low, then took about 11.5 months to recover. Its worst calendar year was 2022, a 4.97% loss. Because the buffer targets a full April-to-March period, anyone forced to cash out mid-period can still lock in a loss.
No distributions are on record, and the targets exclude SPY's dividends, so drawing income means trimming shares. Under the SEC's standard example ($10,000 invested, 5% yearly return), its 0.60% annual expense ratio, the lowest among eight buffer funds compared, costs $61 in year one and $750 over ten years. Past results don't predict the future, and a plan needs to weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting S&P 500 exposure with a cushion against SPY's first 20% of losses each April-to-March period, who accept capped gains.
- Cost-focused investors comparing buffer funds: PSFM's 0.60% expense ratio is the lowest of eight compared; the other seven average 0.86%.
- People able to invest near April 1 and hold a full year, since the stated cap and buffer apply only to full-period holders.
Look elsewhere if
- Income seekers: no distributions are on record, and the fund's targets are based on SPY's price, leaving out its dividends.
- Investors wanting full stock-market upside: gains stop at the cap, which was 13.35% after fees for the period ending March 31, 2026.
- Those wary of small funds: net assets were about $25.4 million as of July 31, 2026, the smallest of eight buffer funds compared.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PSFM this fund | 0.6% | $25.4M | +14.3% | +15.4% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
How does the PSFM buffer work?
PSFM uses options on SPY, the SPDR S&P 500 ETF Trust, to absorb the first 20% of SPY's price decline over each April-to-March period, before fees. If SPY loses 15% over a period, the fund is designed to end flat. Between 20% and 40% losses, the cushion shrinks until the fund's loss matches SPY's at 40%. Beyond that, losses are one-for-one. The buffer applies only to shares held for the full period, and it carries no guarantee.
What happens if I invest in PSFM after April 1?
Your results will likely differ from the fund's stated targets. The cap and buffer are fixed against SPY's price and the fund's net asset value (the per-share value of its holdings) on the first day of each period. Someone who purchases later starts from a different price, so the remaining upside and cushion may be larger or smaller. A new cap is set each April 1. For the period ending March 31, 2026, it was 13.35% after fees. Pacer's website shows the fund's daily position relative to both.
Does PSFM pay dividends?
No. PSFM has no distributions on record. It holds FLEX options rather than SPY shares, and its targeted outcomes are based on SPY's share price return, which leaves out the dividends SPY pays. So holders forgo the dividend income an S&P 500 index fund would provide, on top of accepting a cap on gains. Retirees who rely on portfolio income would need to trim shares or draw cash from other holdings.
PSFM vs BUFR: what's the difference?
PSFM is cheaper and far smaller. It charges 0.60% a year versus 0.95% for FT Vest Laddered Buffer ETF (BUFR). PSFM held about $25.4 million as of July 31, 2026, against roughly $10.5 billion for BUFR as of August 31, 2026. As its name suggests, BUFR uses a ladder, typically spreading money across buffer series that reset in different months. PSFM resets once each April. Through October 27, 2026, PSFM returned 14.3% over one year (BUFR: 11.6%) and 15.4% a year over three years (BUFR: 16.8%).
How has PSFM performed?
PSFM returned 9.6% a year from its March 31, 2021 launch through December 31, 2025, according to its prospectus. Calendar-year returns were -4.97% in 2022, 18.23% in 2023, 14.48% in 2024 and 7.02% in 2025. Based on market prices, it gained 12.9% from the start of 2026 through October 27, 2026, and 14.3% over the year to that date. Its worst quarter was a 10.99% drop in the quarter ending June 30, 2022. The cap limits gains in strong years.