PSMD

📎 Investment Objective

The Pacer Swan SOS Moderate (January) ETF seeks to provide investment returns that track the performance of the Swan Defined Risk Index, a rules-based index that aims to provide moderate capital appreciation while seeking to limit downside risk.

✨ Key Features

• Defined-risk strategy aiming to provide moderate capital appreciation with limited downside
• Invests in U.S. equity index options and U.S. Treasuries to implement the defined-risk approach
• Resets the options positions annually in January to maintain the defined-risk profile

⚠️ Primary Risks

• Market risk - The ETF's returns are tied to the performance of the U.S. equity market, which can be volatile
• Option strategy risk - The options-based approach may not perform as expected, leading to losses
• Interest rate risk - Changes in interest rates can affect the value of the ETF's Treasury holdings
• Liquidity risk - The ETF may have difficulty trading its options positions, especially in stressed market conditions

👤 Best For

The Pacer Swan SOS Moderate (January) ETF may be suitable for investors seeking moderate capital appreciation with defined downside risk, who have a medium-term investment horizon and a moderate risk tolerance.