At a glance
PSFO charges 0.6% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $38.3M in assets, the 8th largest of that group. Over the past year it returned +11.8% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds; over three years it returned +15.5% a year. At its worst it fell 11.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months after the low.
The short version
Pacer Swan SOS Flex (October) ETF (PSFO) holds options on the SPDR S&P 500 ETF Trust (SPY) to aim for a set one-year result that resets each October. You get SPY's gains up to a cap, and a buffer against the first 20% of losses that shrinks to zero as losses go from 20% to 40%. Its 0.60% expense ratio is the lowest of the eight buffer funds compared here. With $38.3 million in assets as of July 31, 2026, it is also the smallest.
Price history
The interactive chart needs JavaScript.
PSFO +11.8% 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 | |
|---|---|---|---|---|---|---|
| PSFO official prospectus, to Dec 31, 2025 | — | +12.85% | — | — | — | +11.41% |
| PSFO price data to Oct 27, 2026 | +11.6% | +11.8% | +15.5% | +11.3% | — | +11.9% |
- Over the year to Oct 27, 2026, PSFO returned +11.8%, 4th of 8 among similar funds.
- Its 5-year annualized return was +11.3%.
- Its worst full calendar year was 2022 (-0.3%); its best was 2023 (+20.0%).
- The deepest fall in its price history was 12.1% (Feb 18, 2025 to Apr 8, 2025), recovered by Jun 10, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +11.6% | — |
| 2025 | +12.9% | +12.85% |
| 2024 | +10.8% | +11.12% |
| 2023 | +20.0% | +20.15% |
| 2022 | -0.3% | -0.40% |
| 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 6.8% over that stretch · deepest drop along the way 11.7%, back to its old high 4.8 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 withdrew a net $7.8M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.46%, +0.10%, +0.75%.
How it works
PSFO is an actively managed ETF from Pacer Advisors. It puts almost all of its money into FLEX Options. These are exchange-listed options with custom strike prices and expiration dates, and here they are tied to SPY's share price. Each "investment period" runs about one year. For October 1, 2025, to September 30, 2026, the cap was 13.73% before fees (13.12% after fees). Losses of up to 20% were fully buffered. The buffer then faded from 20% to 40%, and past a 40% drop the fund was built to lose as much as SPY. For example, if SPY fell 15%, the fund aimed for a flat 0% before fees.
As of July 31, 2026, the fund held five option positions and 0.5% cash. One deep in-the-money call (strike $7.46) moves almost one-for-one with SPY. A mix of bought and sold puts at $666.18, $532.94 and $399.71 creates the buffer and its fade. A sold call at $757.65 sets the cap. Because the fund owns options and not SPY shares, it does not collect SPY's dividends.
The cap and buffer are measured from the start of each period. If you buy or sell partway through, your results may be very different. Pacer's website shows the fund's position relative to the cap and buffer each day. Every October 1, the fund buys new options and sets a new cap based on market conditions at that time.
What it really costs
- PSFO 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 |
|---|---|---|---|---|
| PSFO | $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 hold onto S&P 500 exposure while softening moderate losses, but it gives up gains above a yearly cap and pays no income.
PSFO launched on September 30, 2021, so it did not exist during the 2008 or 2020 crashes. In the 2022 bear market, it fell 11.7% from January 4 to June 16, 2022, and was back to its old high by November 10, 2022, about 4.8 months later. It ended 2022 down 0.4%, its worst calendar year. Its deepest drop was 12.1%, from February 18 to April 8, 2025, and it recovered by June 10, 2025. For someone who may need to sell shares in a bad year, those shallower drops are the main appeal. However, the fund paid no distributions, so any cash has to come from selling shares. The 0.60% expense ratio works out to about $61 in the first year on $10,000 under the SEC's standard example. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Those holding full October-to-September periods who want S&P 500 exposure with a buffer on the first 20% of losses, fading out by 40%.
- Cost-conscious investors comparing buffer funds: its 0.60% expense ratio was the lowest of eight similar funds, against a 0.86% peer average.
- Retirees wanting a calmer ride: its worst peak-to-trough drop through October 27, 2026 was 12.1%, and bear-market 2022 ended down only 0.4%.
Look elsewhere if
- Income seekers: its options track SPY's price return, so S&P 500 dividends are forgone, and the fund recorded no distributions.
- Investors seeking full market gains or entering mid-period: the cap was 13.12% after fees through September 30, 2026, and later entrants face different outcomes.
- Those preferring a larger fund: net assets were about $38 million as of July 31, 2026, smallest of eight similar funds.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PSFO this fund | 0.6% | $38.3M | +11.8% | +15.5% |
| 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
Does PSFO pay dividends?
No. No distributions have been recorded for PSFO. The fund holds FLEX options on the SPDR S&P 500 ETF Trust (SPY), not SPY shares, so it does not collect the dividends SPY pays. Its outcome is based only on SPY's share price return. Retirees who want regular cash from this fund would have to sell shares. Funds built for income work differently and may be worth comparing.
What is the PSFO cap for the year?
For the period from October 1, 2025, to September 30, 2026, the cap was 13.73% before fees and 13.12% after fees. The cap resets every October 1, when the fund buys a new set of options. The new level depends on market conditions at that time and is unlikely to stay the same from year to year. Pacer's website lists the cap for the period in progress and shows each day how close the fund is to its cap and buffer.
What happens if I buy PSFO in the middle of the outcome period?
Your results may be quite different from the stated cap and buffer. Both are set using prices on the first day of the period. If the fund has already gained, you have less room before hitting the cap. If it has already fallen, some of the buffer may be used up, or more of it may be left. The prospectus suggests checking the fund's daily position on Pacer's website before buying.
PSFO vs BUFR: what's the difference?
BUFR, the FT Vest Laddered Buffer ETF, costs 0.95% a year, compared with 0.60% for PSFO. It is far larger, with $10.5 billion in net assets as of August 31, 2026. As of October 27, 2026, BUFR returned 11.6% over one year and 16.8% a year over three years. PSFO returned 11.8% and 15.5%. A laddered fund generally spreads money across several outcome periods with different start dates. PSFO uses a single period that starts each October 1.
How did PSFO do in the 2022 bear market?
It held up better than a typical stock fund, though it still lost money along the way. PSFO fell 11.7% from January 4 to June 16, 2022, and got back to its old high by November 10, 2022, about 4.8 months later. For the full 2022 calendar year, the prospectus shows a loss of just 0.4%. Its worst quarter was a 8.38% drop in the quarter ending June 30, 2022. Past results don't predict future returns.