LCOW vs. GARP

Last updated Jun 23, 2026

LCOW (Pacer S&P 500 Quality FCF Aristocrats ETF) and GARP (iShares MSCI USA Quality GARP ETF) are both exchange-traded funds - LCOW is a S&P 500 fund tracking the S&P 500 Quality FCF Aristocrats Index, while GARP is a Large Cap Growth Equities fund tracking the MSCI USA Quality GARP Select Index. Both are passively managed. Over the past year, LCOW returned 20.80% vs 42.17% for GARP. Their correlation of 0.86 suggests significant overlap in exposure. LCOW charges 0.49%/yr vs 0.15%/yr for GARP.

Performance

LCOW vs. GARP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) and iShares MSCI USA Quality GARP ETF (GARP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LCOW achieves a 4.69% return, which is significantly lower than GARP's 19.46% return.

LCOW

• 1D: -0.51%
• 1M: -0.81%
• YTD: 4.69%
• 6M: 4.16%
• 1Y: 20.80%
• 3Y*: —
• 5Y*: —
• 10Y*: —

GARP

• 1D: -0.10%
• 1M: 3.81%
• YTD: 19.46%
• 6M: 18.14%
• 1Y: 42.17%
• 3Y*: 32.04%
• 5Y*: 19.14%
• 10Y*: —

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

LCOW vs. GARP - Yearly Performance Comparison

	2026 (YTD)	2025
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	4.69%	20.51%
GARP iShares MSCI USA Quality GARP ETF	19.46%	28.86%

Correlation

The correlation between LCOW and GARP is 0.87, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.87
Correlation (All Time) Calculated using the full available price history since May 7, 2025	0.86

The correlation between LCOW and GARP has been stable across timeframes, ranging from 0.86 to 0.87 - a consistent structural relationship.

Return for Risk

LCOW vs. GARP — Risk / Return Rank

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

LCOW

LCOW Risk / Return Rank: 48
LCOW Sharpe Ratio Rank: 51
LCOW Sortino Ratio Rank: 50
LCOW Omega Ratio Rank: 47
LCOW Calmar Ratio Rank: 41
LCOW Martin Ratio Rank: 51

GARP

GARP Risk / Return Rank: 67
GARP Sharpe Ratio Rank: 72
GARP Sortino Ratio Rank: 65
GARP Omega Ratio Rank: 65
GARP Calmar Ratio Rank: 64
GARP Martin Ratio Rank: 67

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.

LCOW vs. GARP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) and iShares MSCI USA Quality GARP ETF (GARP). 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.

	LCOW	GARP	Difference
Sharpe ratio: Return per unit of total volatility	1.70	2.23	-0.53
Sortino ratio: Return per unit of downside risk	2.39	2.88	-0.49
Omega ratio: Gain probability vs. loss probability	1.30	1.38	-0.08
Calmar ratio: Return relative to maximum drawdown	2.02	3.10	-1.07
Martin ratio: Return relative to average drawdown	8.38	12.06	-3.68

LCOW vs. GARP - Sharpe Ratio Comparison

The current LCOW Sharpe Ratio is 1.70, which is comparable to the GARP Sharpe Ratio of 2.23. The chart below compares the historical Sharpe Ratios of LCOW and GARP, 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

LCOW vs. GARP - Drawdown Comparison

The maximum LCOW drawdown since its inception was -10.34%, smaller than the maximum GARP drawdown of -31.34%. Use the drawdown chart below to compare losses from any high point for LCOW and GARP.

Drawdown Indicators

	LCOW	GARP	Difference
Max Drawdown Largest peak-to-trough decline	-10.34%	-31.34%	+21.00%
Max Drawdown (1Y) Largest decline over 1 year	-10.34%	-13.69%	+3.35%
Max Drawdown (3Y) Largest decline over 3 years	—	-23.73%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-30.61%	—
Current Drawdown Current decline from peak	-2.31%	-2.23%	-0.08%
Average Drawdown Average peak-to-trough decline	-1.40%	-7.33%	+5.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.49%	3.51%	-1.02%

Volatility

LCOW vs. GARP - Volatility Comparison

The current volatility for Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) is 3.96%, while iShares MSCI USA Quality GARP ETF (GARP) has a volatility of 8.09%. This indicates that LCOW experiences smaller price fluctuations and is considered to be less risky than GARP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCOW	GARP	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.96%	8.09%	-4.13%
Volatility (6M) Calculated over the trailing 6-month period	9.69%	15.32%	-5.63%
Volatility (1Y) Calculated over the trailing 1-year period	12.33%	19.04%	-6.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.52%	22.18%	-9.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.52%	23.96%	-11.44%

LCOW vs. GARP - Expense Ratio Comparison

LCOW has a 0.49% expense ratio, which is higher than GARP's 0.15% expense ratio.

Dividends

LCOW vs. GARP - Dividend Comparison

LCOW's dividend yield for the trailing twelve months is around 0.65%, more than GARP's 0.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
GARP iShares MSCI USA Quality GARP ETF	0.27%	0.31%	0.38%	0.75%	1.85%	0.67%	0.75%
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	0.65%	0.43%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both LCOW and GARP in my portfolio?

LCOW and GARP have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, LCOW or GARP?

GARP has higher volatility (8.09%) compared to LCOW (3.96%). In terms of maximum drawdown, LCOW dropped -10.34% vs GARP's -31.34%.

Which ETF is better, LCOW or GARP?

On 1-year performance, GARP leads with 42.17% vs 20.80% for LCOW. On fees, GARP is cheaper at 0.15% per year. On volatility, LCOW has been the lower-risk option at 3.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCOW or GARP?

Over the 1-year period, GARP has performed better with a 42.17% return vs 20.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCOW or GARP?

GARP is cheaper with a 0.15% expense ratio, compared with 0.49% for LCOW.

Which ETF pays a higher dividend yield, LCOW or GARP?

LCOW has the higher dividend yield at 0.65%, compared with 0.27% for GARP.

What is the main difference between LCOW and GARP?

LCOW is categorized as S&P 500, while GARP is Large Cap Growth Equities. LCOW tracks S&P 500 Quality FCF Aristocrats Index, while GARP tracks MSCI USA Quality GARP Select Index. They also come from different issuers: Pacer and iShares. Their fees differ too: 0.49% for LCOW and 0.15% for GARP.

Which has better risk-adjusted returns?

GARP currently has the higher Sharpe Ratio (2.23 vs 1.70), 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.