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Palmer Square Credit Opportunities ETF (PSQO) Sharpe Ratio: 3.84

ETF · Currency in USD · Last updated Jun 3, 2026

The Palmer Square Credit Opportunities ETF seeks a high level of current income and long-term capital appreciation by investing in a diverse mix of relative value credit opportunities within CLOs, corporate credit, asset-backed securities, and bank loans.

PSQO's Sharpe Ratio of 3.84 indicates that for each unit of volatility, it generates 3.84 units of excess return above the risk-free rate. The ratio is calculated using historical daily returns over the past 12 months (as of Jun 3, 2026).

Sharpe uses total volatility (standard deviation) which includes both upside and downside price movements, making it useful for comparing risk-adjusted returns across different assets.

PSQO Sharpe Ratio Rank

PSQO Sharpe Ratio Rank: 94.795
Exceptional

PSQO ranks above 94.7% of all investments in our database based on Sharpe Ratio over the past 12 months, demonstrating exceptional risk-adjusted returns. Securities are ranked from 0 (worst) to 100 (best).

What moves the rank

  • Strong returns with low total volatility → Higher rank
  • High volatility (both upside and downside) → Lower rank
  • Consistent returns → Higher rank than volatile returns of same magnitude
  • Sharp drawdowns increase volatility → Lower rank

What you can do with this information

  • Suitable as a core holding given strong risk-adjusted returns
  • Monitor rank changes to detect deteriorating return-to-volatility profile
  • Exceptional Sharpe ratio supports larger position sizes
  • Compare with category peers to assess whether strength is investment-specific or category-wide

PSQO Sharpe Ratio Market Positioning

The chart shows PSQO's Sharpe Ratio relative to all ETFs on our platform, with color zones indicating percentile rankings. Higher ratios indicate better risk-adjusted returns.

  • Red zone (bottom 25%): 0.91 or lower
  • Yellow zone (middle 50%): 0.91 to 2.51
  • Green zone (top 25%): 2.51 or higher
  • Top 1%: 7.84+
  • Median: 1.76 — half of all investments score higher

How it compares to other similar ETFs

The table compares Palmer Square Credit Opportunities ETF's Sharpe Ratio with other ETFs in the Multisector Bonds category across multiple time periods, showing how PSQO's risk-adjusted performance compares to similar funds.

Data shows 1-, 5-, and 10-year periods, plus each fund's all-time average, as of Jun 3, 2026.

SymbolName1Y Sharpe Ratio5Y Sharpe Ratio10Y Sharpe RatioAll Time Sharpe Ratio
SOFRAmplify Samsung SOFR ETF4.69
CARYAngel Oak Income ETF3.96
PSQOPalmer Square Credit Opportunities ETF3.84
JPIEJPMorgan Income ETF3.81
OGSPObra High Grade Structured Products ETF3.24
PSDMPGIM Short Duration Multi-Sector Bond ETF3.02
MUSETCW Multisector Credit Income ETF3.00
DMXDoubleLine Multi-Sector Income ETF2.90
FLXRTCW Flexible Income ETF2.71
BINCiShares Flexible Income Active ETF2.62

S&P 500 Index

How to choose period

Historical Sharpe Ratio

The chart shows PSQO's rolling Sharpe ratio over time compared to your chosen benchmark. Rising trends indicate improving returns relative to total volatility, while declining trends may signal deteriorating risk-adjusted performance or increased volatility. Use multiple timeframes to distinguish short-term fluctuations from long-term patterns.

Identify market cycles by observing when PSQO consistently outperforms (line above benchmark), underperforms (below benchmark), or aligns with the benchmark.

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Sharpe Ratio Calculator

How does PSQO fit in your portfolio?

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