GCOW vs. SMST

Last updated Jul 17, 2026

GCOW (Pacer Global Cash Cows Dividend ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - GCOW is a Large Cap Value Equities fund tracking the Pacer Global Cash Cows Dividends Index, while SMST is a Inverse Equities fund actively managed by Defiance. GCOW is passively managed, while SMST is actively managed. Over the past year, GCOW returned 22.60% vs 257.89% for SMST. At a correlation of -0.16, they often move in opposite directions. GCOW charges 0.60%/yr vs 1.29%/yr for SMST.

Performance

GCOW vs. SMST - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Pacer Global Cash Cows Dividend ETF (GCOW) and Defiance Daily Target 2X Short MSTR ETF (SMST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, GCOW achieves a 10.82% return, which is significantly higher than SMST's -31.71% return.

GCOW

• 1D: 0.92%
• 1M: -0.33%
• 6M: 7.66%
• YTD: 10.82%
• 1Y: 22.60%
• 3Y*: 15.50%
• 5Y*: 12.66%
• 10Y*: 9.51%

SMST

• 1D: 7.64%
• 1M: 37.45%
• 6M: -8.12%
• YTD: -31.71%
• 1Y: 257.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

GCOW vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
GCOW Pacer Global Cash Cows Dividend ETF	10.82%	27.34%	-3.09%
SMST Defiance Daily Target 2X Short MSTR ETF	-31.71%	-44.36%	-91.71%

Correlation

The correlation between GCOW and SMST is -0.17, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.17
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.16

Return for Risk

GCOW vs. SMST — Risk / Return Rank

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

GCOW

GCOW Risk / Return Rank: 75
GCOW Sharpe Ratio Rank: 81
GCOW Sortino Ratio Rank: 83
GCOW Omega Ratio Rank: 78
GCOW Calmar Ratio Rank: 71
GCOW Martin Ratio Rank: 64

SMST

SMST Risk / Return Rank: 63
SMST Sharpe Ratio Rank: 67
SMST Sortino Ratio Rank: 64
SMST Omega Ratio Rank: 64
SMST Calmar Ratio Rank: 75
SMST Martin Ratio Rank: 44

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.

GCOW vs. SMST - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Pacer Global Cash Cows Dividend ETF (GCOW) and Defiance Daily Target 2X Short MSTR ETF (SMST). 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.

	GCOW	SMST	Difference
Sharpe ratio: Return per unit of total volatility	2.05	1.74	+0.31
Sortino ratio: Return per unit of downside risk	2.99	2.38	+0.61
Omega ratio: Gain probability vs. loss probability	1.36	1.31	+0.05
Calmar ratio: Return relative to maximum drawdown	2.90	3.04	-0.14
Martin ratio: Return relative to average drawdown	8.96	5.82	+3.14

GCOW vs. SMST - Sharpe Ratio Comparison

The current GCOW Sharpe Ratio is 2.05, which is comparable to the SMST Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of GCOW and SMST, 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

GCOW vs. SMST - Drawdown Comparison

The maximum GCOW drawdown since its inception was -37.64%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for GCOW and SMST.

Drawdown Indicators

	GCOW	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-37.64%	-99.25%	+61.61%
Max Drawdown (1Y) Largest decline over 1 year	-7.83%	-85.39%	+77.56%
Max Drawdown (3Y) Largest decline over 3 years	-12.35%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-21.48%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-37.64%	—	—
Current Drawdown Current decline from peak	-3.91%	-97.32%	+93.41%
Average Drawdown Average peak-to-trough decline	-5.83%	-90.93%	+85.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.53%	44.56%	-42.03%

Volatility

GCOW vs. SMST - Volatility Comparison

The current volatility for Pacer Global Cash Cows Dividend ETF (GCOW) is 3.90%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 55.38%. This indicates that GCOW experiences smaller price fluctuations and is considered to be less risky than SMST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	GCOW	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.90%	55.38%	-51.48%
Volatility (6M) Calculated over the trailing 6-month period	8.62%	135.32%	-126.70%
Volatility (1Y) Calculated over the trailing 1-year period	11.08%	149.40%	-138.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.53%	167.53%	-154.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.99%	167.53%	-151.54%

GCOW vs. SMST - Expense Ratio Comparison

GCOW has a 0.60% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

GCOW vs. SMST - Dividend Comparison

GCOW's dividend yield for the trailing twelve months is around 4.75%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
GCOW Pacer Global Cash Cows Dividend ETF	4.75%	4.06%	5.14%	5.28%	4.39%	4.23%	4.12%	4.40%	3.94%	2.79%	1.95%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both GCOW and SMST in my portfolio?

GCOW and SMST have a correlation of -0.17, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GCOW or SMST?

SMST has higher volatility (55.38%) compared to GCOW (3.90%). In terms of maximum drawdown, GCOW dropped -37.64% vs SMST's -99.25%.

Which ETF is better, GCOW or SMST?

On 1-year performance, SMST leads with 257.89% vs 22.60% for GCOW. On fees, GCOW is cheaper at 0.60% per year. On volatility, GCOW has been the lower-risk option at 3.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GCOW or SMST?

Over the 1-year period, SMST has performed better with a 257.89% return vs 22.60%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GCOW or SMST?

GCOW is cheaper with a 0.60% expense ratio, compared with 1.29% for SMST.

Which ETF pays a higher dividend yield, GCOW or SMST?

GCOW has the higher dividend yield at 4.75%, compared with 0.00% for SMST.

What is the main difference between GCOW and SMST?

GCOW is categorized as Large Cap Value Equities, while SMST is Inverse Equities. They also come from different issuers: Pacer and Defiance. Their fees differ too: 0.60% for GCOW and 1.29% for SMST.

Which has better risk-adjusted returns?

GCOW currently has the higher Sharpe Ratio (2.05 vs 1.74), 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.