At a glance
PSMO charges 0.6% a year, below the 0.86% average of the 7 funds most like it (the cheapest of 8). It has $100.0M in assets, the 8th largest of that group. Over the past year it returned +10.5% with distributions reinvested (S&P 500: +11.5%), 6th of those 8 funds; over three years it returned +13.4% a year. At its worst it fell 9.3% 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 Moderate (October) ETF (PSMO) holds options on the SPDR S&P 500 ETF Trust (SPY) to deliver a buffered, capped return over one-year periods that start each October 1. It aims to absorb the first 15% of SPY's price losses in exchange for a cap on gains (11.84% before fees for the period ending September 30, 2026). Its 0.60% expense ratio is the lowest of eight comparable buffer funds.
Price history
The interactive chart needs JavaScript.
PSMO +10.5% 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 | |
|---|---|---|---|---|---|---|
| PSMO official prospectus, to Dec 31, 2025 | — | +11.18% | — | — | — | +10.00% |
| PSMO price data to Oct 27, 2026 | +9.8% | +10.5% | +13.4% | +10.0% | — | +10.4% |
- Over the year to Oct 27, 2026, PSMO returned +10.5%, 6th of 8 among similar funds.
- Its 5-year annualized return was +10.0%.
- Its worst full calendar year was 2022 (-1.3%); its best was 2023 (+20.5%).
- The deepest fall in its price history was 9.8% (Feb 18, 2025 to Apr 8, 2025), recovered by Jun 6, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +9.8% | — |
| 2025 | +11.4% | +11.18% |
| 2024 | +9.4% | +9.74% |
| 2023 | +20.5% | +20.58% |
| 2022 | -1.3% | -1.35% |
| 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 6.7% over that stretch · deepest drop along the way 9.3%, back to its old high 5.3 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 $1.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +2.04%, +0.21%, +0.75%.
How it works
PSMO is an actively managed ETF run by Pacer Advisors. It does not own stocks. It puts substantially all of its assets into FLEX Options on SPY. FLEX Options are exchange-listed options whose strike prices and expiration dates can be customized. As of July 31, 2026, four options made up 99.66% of assets, and cash made up 0.37%. A call with a very low strike price (7.39) tracks SPY's price. A bought put at 666.25 and a sold put at 566.25 create the buffer. A sold call at 745.06 sets the cap.
The targets below assume shares bought October 1, 2025 and held to September 30, 2026. If SPY rose, the fund aimed to match its price gain up to 11.84% before fees (11.24% after fees). If SPY fell by up to 15%, the fund aimed for a flat return before fees. Losses beyond 15% pass through one for one, so a 20% drop in SPY would mean a loss of about 5%. The options track SPY's share price only, so its dividends are not part of the return. None of these outcomes is guaranteed.
Each October 1, the fund resets into a new set of options. The new cap depends on market conditions at the time, so it changes from year to year. Investors who buy partway through a period get a different cap and buffer from those set at the start. Pacer posts where the fund stands relative to both each day on paceretfs.com.
What it really costs
- PSMO 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 |
|---|---|---|---|---|
| PSMO | $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 gives up part of the stock market's upside in exchange for a buffer against the first 15% of S&P 500 price losses in each October-to-September period.
PSMO launched in October 2021, so it has no record from the 2008 or 2020 crashes. During the 2022 bear market, it fell 6.7% while the market went from peak to trough. Its deepest drop that year was 9.3%, and it recovered in about 5.3 months, by November 25, 2022. It ended 2022 down 1.35%, its worst calendar year. Its deepest drop overall was 9.8% in early 2025, which it recovered in about two months. Smaller drops can mean selling fewer shares at low prices in a bad year. The cost is capped gains: as of October 27, 2026, its three-year return ranked last of eight buffer funds.
It pays no distributions, so any income would have to come from selling shares. In the SEC's standard $10,000 example, costs come to $61 after one year and $750 after 10 years. Past results don't predict future returns. A plan should look at the whole portfolio, not just one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want S&P 500 price exposure with a 15% loss buffer, and who can hold for a full October 1 to September 30 period.
- Cost-conscious buyers of buffer funds. Its 0.60% expense ratio was the lowest of eight comparable funds; the other seven average 0.86%.
- Retirees who want a smoother ride. As of October 27, 2026, its one-year volatility was 6.3%, and its deepest drop since launch was 9.8%.
Look elsewhere if
- Anyone who needs regular income. The fund has no recorded distributions, and because it tracks SPY's share price, S&P 500 dividends aren't captured.
- Investors who want the stock market's full gains. The cap limits upside, and its three-year return ranked last of eight buffer funds.
- Those who prefer large funds. Net assets were about $100 million as of July 31, 2026, the smallest of eight comparable funds.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| PSMO this fund | 0.6% | $100.0M | +10.5% | +13.4% |
| 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
Does PSMO pay dividends?
No. The fund has no recorded distributions. PSMO holds options on the SPDR S&P 500 ETF Trust, not the stocks themselves, and its targets are based on SPY's share price return. That means the dividends paid by S&P 500 companies are not part of what the fund aims to deliver. Investors who want cash from PSMO would have to sell shares.
How does the PSMO buffer work?
Over each one-year period starting October 1, PSMO aims to absorb the first 15% of SPY's price losses, before fees. For the October 1, 2025 to September 30, 2026 period, a 10% fall in SPY was designed to leave the fund flat. A 20% fall was designed to mean about a 5% loss. In exchange, gains were capped at 11.84% before fees, or 11.24% after fees. These outcomes assume holding for the full period and are not guaranteed.
What happens if I buy PSMO in the middle of the outcome period?
You may get a very different result from the one the fund targets. The cap and buffer are fixed on the first day of each period, based on SPY's price and the fund's value at that point. If you buy later, at a different price, you may have less upside left or only part of the buffer. Pacer posts the fund's position relative to the cap and buffer each day on paceretfs.com.
PSMO vs PJAN: what's the difference?
Both are single-period buffer ETFs on US stocks. PSMO, from Pacer, resets each October. PJAN, the Innovator U.S. Equity Power Buffer ETF, resets each January. PSMO costs 0.60% a year, compared with 0.79% for PJAN. As of October 27, 2026, both returned 10.5% over one year, and PJAN led over three years, 14.8% a year versus 13.4%. PJAN is much larger, with $1.44 billion in net assets as of July 31, 2026. Their caps and buffers differ, so they are worth comparing.
How did PSMO do in the 2022 bear market?
It lost less than its swings during the year might suggest. PSMO ended 2022 down 1.35%. While the market fell from its January 2022 peak to its October 2022 low, the fund fell 6.7%. Its deepest drop was 9.3%, reached on June 16, 2022, and it recovered by November 25, 2022. Its worst quarter was the second quarter of 2022, at -6.63%. It then gained 20.58% in 2023.