FTCE vs. PSMD

Last updated Aug 4, 2026

FTCE (First Trust New Constructs Core Earnings Leaders ETF) and PSMD (Pacer Swan SOS Moderate (December) ETF) are both exchange-traded funds - FTCE is a Large Cap Blend Equities fund tracking the Bloomberg New Constructs Core Earnings Leaders Index, while PSMD is a Defined Outcome fund actively managed by Pacer. FTCE is passively managed, while PSMD is actively managed. Over the past year, FTCE returned 24.40% vs 13.48% for PSMD. Their 0.77 correlation means they have sometimes moved together and sometimes differently. FTCE charges 0.60%/yr vs 0.75%/yr for PSMD.

Performance

FTCE vs. PSMD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust New Constructs Core Earnings Leaders ETF (FTCE) 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, FTCE achieves a 9.47% return, which is significantly higher than PSMD's 6.86% return.

FTCE

• 1D: 0.16%
• 1M: -0.33%
• 6M: 6.88%
• YTD: 9.47%
• 1Y: 24.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 19.25%

PSMD

• 1D: 0.48%
• 1M: 1.09%
• 6M: 6.00%
• YTD: 6.86%
• 1Y: 13.48%
• 3Y*: 12.22%
• 5Y*: 9.27%
• 10Y*: —
• ALL TIME*: 9.75%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FTCE First Trust New Constructs Core Earnings Leaders ETF	$145.13K	$168.42K	$261.53K
PSMD Pacer Swan SOS Moderate (December) ETF	$12.31K	$12.84K	$37.40K

FTCE vs. PSMD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FTCE First Trust New Constructs Core Earnings Leaders ETF	9.47%	26.14%	-0.02%
PSMD Pacer Swan SOS Moderate (December) ETF	6.86%	11.45%	2.22%

Correlation

The correlation between FTCE and PSMD is 0.74, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.74
Correlation (All Time) Calculated using the full available price history since Oct 3, 2024	0.77

The correlation between FTCE and PSMD has been stable across timeframes, ranging from 0.74 to 0.77 - a consistent structural relationship.

FTCE vs. PSMD - Sectors Allocation Comparison

Sectors	FTCE	PSMD
Technology	36.3%	38.5%
Consumer Cyclical	12.2%	9.5%
Financial Services	11.6%	11.6%
Healthcare	9.8%	8.9%
Industrials	8.9%	8.4%
Communication Services	7.4%	9.9%
Consumer Defensive	4.3%	4.5%
Energy	3.4%	3.0%
Utilities	2.2%	2.2%
Real Estate	2.0%	1.8%
Basic Materials	1.9%	1.7%

Return for Risk

FTCE vs. PSMD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FTCE

FTCE Risk / Return Rank: 65
FTCE Sharpe Ratio Rank: 70
FTCE Sortino Ratio Rank: 69
FTCE Omega Ratio Rank: 68
FTCE Calmar Ratio Rank: 62
FTCE Martin Ratio Rank: 57

PSMD

PSMD Risk / Return Rank: 89
PSMD Sharpe Ratio Rank: 90
PSMD Sortino Ratio Rank: 92
PSMD Omega Ratio Rank: 93
PSMD Calmar Ratio Rank: 80
PSMD Martin Ratio Rank: 91

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FTCE vs. PSMD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust New Constructs Core Earnings Leaders ETF (FTCE) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FTCE	PSMD	Difference
Sharpe ratio: Return per unit of total volatility	1.78	2.33	-0.55
Sortino ratio: Return per unit of downside risk	2.48	3.47	-0.99
Omega ratio: Gain probability vs. loss probability	1.32	1.48	-0.16
Calmar ratio: Return relative to maximum drawdown	2.41	3.06	-0.65
Martin ratio: Return relative to average drawdown	7.53	15.84	-8.31

FTCE vs. PSMD - Sharpe Ratio Comparison

The current FTCE Sharpe Ratio is 1.78, which is comparable to the PSMD Sharpe Ratio of 2.33. The chart below compares the historical Sharpe Ratios of FTCE 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.

Drawdowns

FTCE vs. PSMD - Drawdown Comparison

The maximum FTCE drawdown since its inception was -18.11%, which is greater than PSMD's maximum drawdown of -11.96%. Use the drawdown chart below to compare losses from any high point for FTCE and PSMD.

Drawdown Indicators

	FTCE	PSMD	Difference
Max Drawdown Largest peak-to-trough decline	-18.11%	-11.96%	-6.15%
Max Drawdown (1Y) Largest decline over 1 year	-10.16%	-4.42%	-5.74%
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	-4.56%	0.00%	-4.56%
Average Drawdown Average peak-to-trough decline	-2.69%	-1.62%	-1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.25%	0.85%	+2.40%

Volatility

FTCE vs. PSMD - Volatility Comparison

First Trust New Constructs Core Earnings Leaders ETF (FTCE) has a higher volatility of 3.32% compared to Pacer Swan SOS Moderate (December) ETF (PSMD) at 1.51%. This indicates that FTCE'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

	FTCE	PSMD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.32%	1.51%	+1.81%
Volatility (6M) Calculated over the trailing 6-month period	11.07%	4.84%	+6.23%
Volatility (1Y) Calculated over the trailing 1-year period	13.77%	5.82%	+7.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.57%	8.65%	+7.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.57%	8.42%	+8.15%

FTCE vs. PSMD - Expense Ratio Comparison

FTCE has a 0.60% expense ratio, which is lower than PSMD's 0.75% expense ratio.

Dividends

FTCE vs. PSMD - Dividend Comparison

FTCE's dividend yield for the trailing twelve months is around 0.66%, while PSMD has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021
FTCE First Trust New Constructs Core Earnings Leaders ETF	0.66%	0.96%	0.28%	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 FTCE and PSMD in my portfolio?

FTCE and PSMD have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTCE or PSMD?

FTCE has higher volatility (3.32%) compared to PSMD (1.51%). In terms of maximum drawdown, FTCE dropped -18.11% vs PSMD's -11.96%.

Which ETF is better, FTCE or PSMD?

On 1-year performance, FTCE leads with 24.40% vs 13.48% for PSMD. On fees, FTCE is cheaper at 0.60% per year. On volatility, PSMD has been the lower-risk option at 1.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FTCE or PSMD?

Over the 1-year period, FTCE has performed better with a 24.40% return vs 13.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FTCE or PSMD?

FTCE is cheaper with a 0.60% expense ratio, compared with 0.75% for PSMD.

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

FTCE has the higher dividend yield at 0.66%, compared with 0.00% for PSMD.

What is the main difference between FTCE and PSMD?

FTCE is categorized as Large Cap Blend Equities, while PSMD is Defined Outcome. They also come from different issuers: First Trust and Pacer. Their fees differ too: 0.60% for FTCE and 0.75% for PSMD.

Which has better risk-adjusted returns?

PSMD currently has the higher Sharpe Ratio (2.33 vs 1.78), 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.