Group 1 - The Pacer Swan SOS Moderate (December) ETF employs a structured-outcome options overlay to manage S&P 500 exposure, providing a defined downside buffer and an upside cap that resets annually in December [1] - The investment strategy focuses on FLEX options collateralized by cash and cash equivalents, aiming for consistent option terms and effective collateral management to reduce slippage and financing drag [1] - The ETF's construction involves a combination of call and put FLEX positions to achieve buffered equity beta within predetermined ranges, while residual cash is managed for liquidity and settlement purposes [1] Group 2 - Day-to-day risk management includes monitoring path dependency, cap proximity, and buffer efficacy as market conditions change, with secondary-market purchases adjusting to the current outcome profile [1] - Rebalancing of the portfolio is typically aligned with option rolls at the outcome reset or to maintain the intended exposure in response to corporate actions or changes in index methodology affecting option underliers [1]

Investment Strategy Overview - The Nasdaq-100 10 Buffer ETF (QBUF) employs an actively managed investment strategy that aims for equity-market participation linked to the Invesco QQQ Trust over rolling three-month outcome periods with a target 10% downside buffer and an upside cap [1] - The fund utilizes a defined-outcome structure through exchange-listed FLEX options referencing QQQ, alongside cash and short-term U.S. instruments [1] Buffer and Cap Mechanism - Option strikes and expirations are calibrated each period to create a 10% loss-mitigation zone while financing upside exposure to a specified cap [1] - Positions are typically grouped by common quarter-end expiries to standardize payoff profiles [1] Management and Adjustments - The manager resets the strategy at each outcome period and may adjust intra-period to maintain buffer mechanics, address path-dependency, or manage cash and distributions [1] - Liquidity and capacity are supported by listed FLEX markets and the depth of QQQ; early or mid-period purchases can significantly alter an investor's remaining buffer and cap [1]

FT Vest Nasdaq-100 Conservative Buffer ETF (QCAP US) – Portfolio Construction MethodologyThe investment strategy underlying the actively managed FT Vest Nasdaq-100 Conservative Buffer ETF governs a target-outcome approach to Nasdaq-100 equity risk using OCC-cleared FLEX options referencing the Invesco QQQ Trust. The portfolio engineers a defined one-year outcome period that resets each April, combining purchased put options to establish a 20% downside buffer and written call spreads to finance protection an ...

Innovator Equity Defined Protection ETF – 1 Yr August (ZAUG US) – Portfolio Construction MethodologyThe investment strategy driving the actively managed Innovator Equity Defined Protection ETF – 1 Yr August aims to provide large-cap U.S. equity exposure that tracks the price return of the SPDR S&P 500 ETF Trust over an August-to-July outcome period while targeting full downside protection and a defined upside cap. The fund normally invests at least 80% of net assets in a focused portfolio of exchange-listed ...