MALVERN, PA — Pacer ETFs lowered fees across its Swan SOS buffered ETF lineup and launched eight new structured-outcome funds, increasing competition in a fast-growing corner of the exchange-traded fund market where investors seek downside protection alongside stock-market exposure.
The fee reductions affect both the Pacer Swan SOS ETF Series and related fund-of-funds products, lowering costs as asset managers compete for assets in the expanding buffered ETF category.
Management fees for the Pacer Swan SOS ETF Series were reduced to 0.49% from 0.60%, while fees for the Pacer Swan SOS Fund of Funds were lowered to 0.10% from 0.12%, according to the company.
The moves coincide with a broader industry push toward lower-cost investment products as structured-outcome ETFs attract growing interest from financial advisors and individual investors seeking alternatives to traditional stock-and-bond allocations.
Pacer also launched eight new Swan SOS Moderate ETFs tied to outcome periods beginning in February, March, May, June, August, September, November and December, broadening the firm’s calendar-based offering.
The funds are designed to track gains in the SPDR S&P 500 ETF Trust up to a predetermined cap while buffering the first 15% of losses during a defined outcome period.
Pacer plans to further expand the lineup with the proposed launch of the Pacer Swan SOS Laddered Moderate ETF, which would allocate assets across all 12 Swan SOS Moderate ETFs to spread exposure across multiple outcome periods.
The expansion reflects continued growth in the structured-outcome market, where fund issuers have increasingly marketed buffered strategies as tools for investors concerned about market volatility.
“As investor interest in structured outcome strategies continues to grow, we’re focused on delivering greater value through lower fees and expanded investment options,” Sean O’Hara, president of Pacer ETF Distributors, stated.
“The continued evolution of the Pacer Swan SOS ETF Series gives advisors and investors additional flexibility when implementing buffered strategies,” O’Hara added, describing the products as potential core equity holdings and alternatives to bond or cash allocations.
Pacer is entering its second decade as an ETF provider and continues to build its structured-outcome product suite as competition among buffered ETF issuers intensifies.
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