At a glance
PSMD charges 0.6% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $93.2M in assets, the 8th largest of that group. Over the past year it returned +10.9% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds; over three years it returned +14.6% a year. At its worst it fell 12.0% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months after the low.
The short version
Pacer Swan SOS Moderate (January) ETF (PSMD) holds FLEX options on the SPDR S&P 500 ETF Trust. Over each January-to-December period, it aims to match that fund's gains up to a cap while absorbing the first 15% of losses. For the period ending December 31, 2026, the cap is 11.54% after fees. Its 0.60% expense ratio was the lowest of eight buffer funds compared, though it was also the smallest.
Price history
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PSMD +10.9% 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 | |
|---|---|---|---|---|---|---|
| PSMD official prospectus, to Dec 31, 2025 | — | +11.35% | — | +9.66% | — | — |
| PSMD price data to Oct 27, 2026 | +9.1% | +10.9% | +14.6% | +9.4% | — | +9.7% |
- Over the year to Oct 27, 2026, PSMD returned +10.9%, 6th of 8 among similar funds.
- Its 5-year annualized return was +9.4%.
- Its worst full calendar year was 2022 (-4.5%); its best was 2023 (+17.5%).
- The deepest fall in its price history was 12% (Jan 4, 2022 to Jun 16, 2022), recovered by Feb 1, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.1% | — |
| 2025 | +11.4% | +11.35% |
| 2024 | +12.8% | +12.99% |
| 2023 | +17.5% | +17.40% |
| 2022 | -4.5% | -3.98% |
| 2021 | — | +11.24% |
| 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 11.3% over that stretch · deepest drop along the way 12%, back to its old high 7.6 months after the low |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.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 $2.5M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.96%, +0.05%, +0.70%.
How it works
This actively managed Pacer Advisors fund owns no stocks. It holds FLEX Options on the SPDR S&P 500 ETF Trust (SPY). These are exchange-listed contracts to buy (calls) or sell (puts) SPY at a set "strike" price on a set date, with customizable terms. As of July 31, 2026, it held four. A call with a very low strike, worth about 102% of net assets, mirrors SPY's moves. A bought put and a sold put about 15% apart create the buffer, and a sold call sets the cap. The options track SPY's price only, so the fund forgoes SPY's dividends.
The options cover an investment period of January 2 to December 31, 2026. If SPY rises, the fund aims to match its gain up to a cap of 12.15% before fees (11.54% after). If SPY falls up to 15%, the target is a flat return before fees. Larger losses pass through one for one: a 20% SPY drop would mean a 5% fund loss before fees. None of this is guaranteed.
When the period ends, the fund buys new options with a new cap based on market conditions then. Because the cap and buffer are fixed on day one, investors who buy or sell mid-period may see very different results. Pacer's website shows the fund's daily position against both.
What it really costs
- PSMD 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 |
|---|---|---|---|---|
| PSMD | $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
Its 15% buffer and low volatility (5.8% over the year to October 27, 2026) aim to soften stock declines, at the cost of capped gains.
PSMD could stand in for part of a stock allocation for someone who wants smaller swings. It launched in December 2020, so it has no record from the 2008 or 2020 crashes. In the 2022 bear market, it fell 12% from January 4 to June 16, 2022, its deepest drop. It recovered by February 1, 2023, about 7.6 months later. Its worst calendar year was 2022, at -3.98%. Those shallower losses may help someone who has to sell shares in a bad year. But the buffer works as designed only for shares bought at the period start and held to its end. The fund paid no income in the last year, so cash needs would have to come from selling shares. In the SEC's standard example, $10,000 invested costs $61 in year one and $750 over 10 years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting S&P 500 exposure with the first 15% of yearly losses buffered, who accept gains capped at 11.54% after fees for the 2026 period.
- Cost-conscious buyers of buffer funds: PSMD's 0.60% expense ratio was the lowest of eight similar funds compared, against a 0.86% average.
- People who can buy near the early-January period start and hold to the December 31 end, when the stated buffer and cap apply.
Look elsewhere if
- Anyone needing regular income: PSMD paid no distributions in the last year, and its options track SPY's price, not its dividends.
- Investors seeking full stock-market upside: PSMD's 14.6% annualized three-year return to October 27, 2026 ranked 7th of eight similar funds.
- Those who prefer a larger, more heavily traded fund: with $93.2 million in net assets as of July 31, 2026, it was the smallest of eight compared.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PSMD this fund | 0.6% | $93.2M | +10.9% | +14.6% |
| 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 PSMD pay dividends?
No. PSMD paid no distributions in the year to October 27, 2026, so its trailing yield was 0%. The fund holds options on the SPDR S&P 500 ETF Trust, not the stocks themselves. Its target outcomes are based on SPY's share price return, which leaves out S&P 500 dividends. A retiree who needs cash from this holding would have to sell shares rather than collect payouts.
How does the PSMD buffer work?
For shares held from January 2 to December 31, 2026, PSMD aims to absorb the first 15% of losses in the SPDR S&P 500 ETF Trust, before fees. If SPY falls 10%, the fund aims to be flat. If SPY falls 20%, the fund aims to lose 5%. In exchange, gains are capped at 12.15% before fees, or 11.54% after fees. There is no guarantee these results will be achieved.
What happens if I buy PSMD in the middle of the year?
Your results may differ a lot from the stated outcomes. The cap and buffer are fixed against the fund's value on January 2, 2026, not the day you buy. By October 27, 2026, the fund was up 9.1% for the year. A buyer then would have little room left before the 11.54% after-fee cap. They could also lose about that much before the buffer begins. The fund's website shows these figures daily.
PSMD vs PJAN: what's the difference?
Both are January-period buffer ETFs on U.S. stocks. PSMD is from Pacer, and PJAN is Innovator's U.S. Equity Power Buffer ETF. PSMD charges 0.60% a year, compared with 0.79% for PJAN. As of October 27, 2026, one-year returns were 10.9% for PSMD and 10.5% for PJAN. Annualized three-year returns were 14.6% and 14.8%. PJAN is much larger: about $1.44 billion in net assets against $93.2 million as of July 31, 2026. Caps and buffers differ, so compare each fund's terms.
Is PSMD good for retirement?
It depends on what you need from it. PSMD may suit retirees who want stock exposure with smaller swings. Its worst calendar year was 2022, at -3.98%, and its deepest drop was 12%. Per the prospectus, it returned 9.66% a year over the five years to December 31, 2025. The trade-offs: capped gains, no income in the last year, a 0.60% expense ratio, and a buffer that works as designed only over a full period.