ESN vs. PSMD

Last updated Jun 6, 2026

ESN (Essential 40 Stock ETF) and PSMD (Pacer Swan SOS Moderate (December) ETF) are both Large Cap Blend Equities funds. ESN is passively managed, while PSMD is actively managed. Over the past year, ESN returned 26.33% vs 14.66% for PSMD. A 0.71 correlation means they provide meaningful diversification when combined. ESN charges 0.70%/yr vs 0.75%/yr for PSMD.

Performance

ESN vs. PSMD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Essential 40 Stock ETF (ESN) and Pacer Swan SOS Moderate (December) ETF (PSMD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ESN achieves a 13.17% return, which is significantly higher than PSMD's 4.71% return.

ESN

• 1D: -1.55%
• 1M: 2.19%
• YTD: 13.17%
• 6M: 13.13%
• 1Y: 26.33%
• 3Y*: —
• 5Y*: —
• 10Y*: —

PSMD

• 1D: -0.90%
• 1M: 0.55%
• YTD: 4.71%
• 6M: 5.28%
• 1Y: 14.66%
• 3Y*: 12.37%
• 5Y*: 9.08%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

ESN vs. PSMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
ESN Essential 40 Stock ETF	13.17%	16.52%	-2.98%
PSMD Pacer Swan SOS Moderate (December) ETF	4.71%	11.45%	1.32%

Correlation

The correlation between ESN and PSMD is 0.72, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.72
Correlation (All Time) Calculated using the full available price history since Oct 22, 2024	0.71

The correlation between ESN and PSMD has been stable across timeframes, ranging from 0.71 to 0.72 - a consistent structural relationship.

Return for Risk

ESN vs. PSMD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ESN

ESN Risk / Return Rank: 84
ESN Sharpe Ratio Rank: 86
ESN Sortino Ratio Rank: 87
ESN Omega Ratio Rank: 81
ESN Calmar Ratio Rank: 82
ESN Martin Ratio Rank: 84

PSMD

PSMD Risk / Return Rank: 83
PSMD Sharpe Ratio Rank: 84
PSMD Sortino Ratio Rank: 88
PSMD Omega Ratio Rank: 89
PSMD Calmar Ratio Rank: 70
PSMD Martin Ratio Rank: 87

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ESN vs. PSMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Essential 40 Stock ETF (ESN) and Pacer Swan SOS Moderate (December) ETF (PSMD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ESN	PSMD	Difference
Sharpe ratio: Return per unit of total volatility	2.67	2.59	+0.08
Sortino ratio: Return per unit of downside risk	3.71	3.80	-0.09
Omega ratio: Gain probability vs. loss probability	1.46	1.54	-0.08
Calmar ratio: Return relative to maximum drawdown	4.12	3.33	+0.79
Martin ratio: Return relative to average drawdown	16.39	17.68	-1.29
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ESN vs. PSMD - Sharpe Ratio Comparison

The current ESN Sharpe Ratio is 2.67, which is comparable to the PSMD Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of ESN and PSMD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ESN	PSMD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.67	2.59	+0.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	1.06	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.24	1.15	+0.09

Drawdowns

ESN vs. PSMD - Drawdown Comparison

The maximum ESN drawdown since its inception was -13.60%, which is greater than PSMD's maximum drawdown of -11.96%. Use the drawdown chart below to compare losses from any high point for ESN and PSMD.

Drawdown Indicators

	ESN	PSMD	Difference
Max Drawdown Largest peak-to-trough decline	-13.60%	-11.96%	-1.64%
Max Drawdown (1Y) Largest decline over 1 year	-6.42%	-4.42%	-2.00%
Max Drawdown (3Y) Largest decline over 3 years	—	-10.70%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-11.96%	—
Current Drawdown Current decline from peak	-1.84%	-0.91%	-0.93%
Average Drawdown Average peak-to-trough decline	-1.87%	-1.66%	-0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.61%	0.83%	+0.78%

Volatility

ESN vs. PSMD - Volatility Comparison

Essential 40 Stock ETF (ESN) has a higher volatility of 2.97% compared to Pacer Swan SOS Moderate (December) ETF (PSMD) at 1.24%. This indicates that ESN's price experiences larger fluctuations and is considered to be riskier than PSMD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ESN	PSMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.97%	1.24%	+1.73%
Volatility (6M) Calculated over the trailing 6-month period	7.24%	4.52%	+2.72%
Volatility (1Y) Calculated over the trailing 1-year period	9.90%	5.70%	+4.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.33%	8.60%	+4.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.33%	8.47%	+4.86%

ESN vs. PSMD - Expense Ratio Comparison

ESN has a 0.70% expense ratio, which is lower than PSMD's 0.75% expense ratio.

Dividends

ESN vs. PSMD - Dividend Comparison

ESN's dividend yield for the trailing twelve months is around 0.80%, while PSMD has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021
ESN Essential 40 Stock ETF	0.80%	0.91%	0.76%	0.00%	0.00%	0.00%
PSMD Pacer Swan SOS Moderate (December) ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.47%

Frequently Asked Questions

Can I hold both ESN and PSMD in my portfolio?

ESN and PSMD have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ESN or PSMD?

ESN has higher volatility (2.97%) compared to PSMD (1.24%). In terms of maximum drawdown, ESN dropped -13.60% vs PSMD's -11.96%.

Which ETF is better, ESN or PSMD?

On 1-year performance, ESN leads with 26.33% vs 14.66% for PSMD. On fees, ESN is cheaper at 0.70% per year. On volatility, PSMD has been the lower-risk option at 1.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ESN or PSMD?

Over the 1-year period, ESN has performed better with a 26.33% return vs 14.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ESN or PSMD?

ESN is cheaper with a 0.70% expense ratio, compared with 0.75% for PSMD.

Which ETF pays a higher dividend yield, ESN or PSMD?

ESN has the higher dividend yield at 0.80%, compared with 0.00% for PSMD.

What is the main difference between ESN and PSMD?

They also come from different issuers: KKM Financial and Pacer. Their fees differ too: 0.70% for ESN and 0.75% for PSMD.

Which has better risk-adjusted returns?

ESN currently has the higher Sharpe Ratio (2.67 vs 2.59), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.