Pacer ETFs (Pacer), an ETF provider that offers strategy-driven, rules-based ETFs, has launched a new Structured Outcome Strategies (SOS) fund family – the Pacer Swan SOS ETF Series.
Pacer ETFs has partnered with Swan Global Management (Swan), a specialised asset management firm with a 20-year track record at the forefront of hedged equity solutions, which will act as the sub-advisor for the fund family.
The Pacer Swan SOS ETF Series seeks to match returns of the SPDR S&P 500 ETF Trust up to a predetermined cap on the upside, while also offering investors a buffer against market decline to a predetermined point.
“As we enter the new year with continued market uncertainty, it is important for us to bring our investors a product that offers a more defined outcome, and with that, potential for a higher degree of confidence,” says Sean O’Hara, president of Pacer ETFs Distributors. “Our Pacer Swan SOS ETF Series offers just that in an easy-to-use wrapper. We feel this will make an excellent addition to our preexisting fund families and hope that investors see the benefit of owning a strategy like this in their portfolios.”
Pacer’s Structured Outcome Strategies fund family consists of three ETFs that each offer their own set of buffer rules. The Fund of Funds, set to launch on December 29th, 2020, will be composed of the below Pacer Swan SOS ETFs, though the sub-advisor has the ability to insert other Pacer ETFs into the fund at their discretion. The Pacer SOS fund family is now available for trading on the Cboe BZX Exchange.
The Pacer Swan SOS Conservative (December) ETF is listed under the ticker “PSCX”. The Pacer Swan SOS Moderate (December) ETF is listed under the ticker “PSMD”. The Pacer Swan SOS Flex (December) ETF is listed under the ticker “PSFD”. The Pacer Swan SOS Fund of Funds ETF will list under the ticker “PSFF”.
“This is an exciting partnership between Swan and Pacer,” says Micah Wakefield, Portfolio Manager and Director of Research & Product Development at Swan Global Investments. “As experts in hedging options strategies, packaging Swan’s capabilities into defined outcome ETFs is an exciting advancement. Our partnership with Pacer delivers our respective area of expertise from a very capable, combined, end-to-end team.”
“We are actively trying to anticipate the needs of each of our investors and provide them with a strategic investment opportunity that’s suited to evolving market conditions,” says Joe Thomson, founder and president of Pacer Financial, the distributor of Pacer ETFs. “Our long-term growth has been proven by our ability to meet those needs and we are confident that our addition of the Pacer Swan SOS ETF series highlights our mission.”