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Pacer Swan SOS ETF Series

Buffer ETFsPacer Swan SOS ETFs

The Pacer Swan SOS ETF Series seeks to provide predetermined target investment outcomes upon the performance of an underlying security by including a buffer (the “Buffer) and a cap (the “Cap”) over an approximate one-year period through use of the Structure Outcome Strategies (SOS). The Pacer Swan SOS ETF Series aims to:

  • Gain exposure to up trending markets until the cap is reached.
  • Prevent extended declines through use of a buffer.
  • Complement diversified portfolios by providing risk mitigation to equity allocations.

Exposure Asset: The underlying ETF that the fund seeks to match.
Fund Value: The most recent closing NAV of the Fund. The NAV (net asset value) is the value of one share based on the value of the holdings of the Fund calculated daily.
Fund Return: The return based on the NAV of the Fund since the start of the Outcome Period. It may not reflect the actual return for the investor.
Remaining Cap: Based on the Fund's current bid/ask midpoint, the best potential return if held to the end of the Outcome Period, assuming the Exposure Asset meets or exceeds the Cap Exposure Asset Value.
Remaining Buffer: The current amount of the Fund's stated buffer remaining which is the sum of Downside Before Buffer, Exposure Asset to Buffer End, and Unrealized Option Payoff.
Remaining Outcome Period: The number of days remaining until the end of the Outcome Period.
SPDR S&P 500 ETF Trust: is an exchange-traded fund which aims to track the Standard & Poor’s 500 Index, which comprises 500 large- and mid-cap U.S. stocks.

An investment in the Funds is subject to investment risk, including the possible loss of principal. Pacer ETF shares may be bought and sold on an exchange through a brokerage account. Brokerage commissions and ETF expenses will reduce investment returns. There can be no assurance that an active trading market for ETF shares will be developed or maintained. The risks associated with this fund are detailed in the prospectus and could include factors such as buffered loss risk, cap change risk, capped upside risk, counterparty risk, ETF risks, FLEX options correlation risk, FLEX options liquidity risk, FLEX options valuation risk, investment period risk, large-capitalization investing risk, management risk, market risk, new fund risk, non-diversification risk, special tax risk, underlying ETF risk, and/or special risks of exchange traded funds.

The Fund will invest substantially all of its assets in FLexible EXchange® Options (“FLEX Options”) that reference the SPDR® S&P 500® ETF Trust (the “Underlying ETF”). FLEX Options are customizable exchange-traded option contracts guaranteed for settlement by the Options Clearing Corporation. The Fund uses FLEX Options to employ a “structured outcome strategy.” Structured outcome strategies seek to produce pre-determined target investment outcomes based upon the performance of an underlying security or index. The pre-determined structured outcomes sought by the Funds, which include the buffer and cap discussed below, are based upon the performance of the Underlying ETF over a one year period.

Fund shareholders are subject to an upside return cap that represents the maximum percentage return an investor can achieve from an investment in a Fund for an Investment Period. Therefore, even though the Funds’ returns are based upon the Underlying ETF, if the Underlying ETF experiences returns for an Investment Period in excess of the Cap, an investor will not experience those excess gains. The Cap is set on the first day of a Funds’ Investment Period and does not take into account any management fees, transaction costs or expenses charged to shareholders. The Cap will be reduced by these when taken into account.

The Fund only seeks to provide shareholders that hold shares for an entire Investment Period with a buffer against a pre-determined percentage of Underlying ETF losses (based upon the value of the Underlying ETF at the time the Fund entered into the FLEX Options on the first day of its Investment Period) during an Investment Period. You will bear all Underlying ETF losses beyond that pre-determined percentage. The buffer is provided prior to taking into account annual Fund management fees, operating expenses, transaction fees, and any extraordinary expenses incurred by a Fund. A shareholder that purchases shares at the beginning of an Investment Period may lose their entire investment. While each Fund seeks to limit losses for shareholders who hold shares for the entire Investment Period, there is no guarantee it will successfully do so.

Swan Global Management, LLC serves as investment sub-adviser to the Fund. Swan Global Investments, LLC (“Swan”) is an independent Investment Advisory headquartered in Durango, Colorado registered with the U.S. Securities and Exchange Commission under the Investment Advisers Act or 1940. Being an SEC-registered advisor implies no special qualification or training. Swan offers and manages its Defined Risk Strategy, as well as, option-based overlay strategies to individuals, institutions and other advisory firms.