LCOW vs. GQETX

Last updated Jun 3, 2026

LCOW (Pacer S&P 500 Quality FCF Aristocrats ETF) and GQETX (GMO Quality Fund) are both funds - LCOW is a S&P 500 fund tracking the S&P 500 Quality FCF Aristocrats Index, while GQETX is a Large Cap Blend Equities fund managed by GMO. Over the past year, LCOW returned 22.61% vs 23.22% for GQETX. Their correlation of 0.86 suggests significant overlap in exposure. Both charge a 0.49% expense ratio.

Performance

LCOW vs. GQETX - 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 GMO Quality Fund (GQETX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LCOW achieves a 7.16% return, which is significantly higher than GQETX's 6.06% return.

LCOW

• 1D: 0.04%
• 1M: 5.81%
• YTD: 7.16%
• 6M: 8.01%
• 1Y: 22.61%
• 3Y*: —
• 5Y*: —
• 10Y*: —

GQETX

• 1D: -0.03%
• 1M: 4.07%
• YTD: 6.06%
• 6M: 7.46%
• 1Y: 23.22%
• 3Y*: 17.89%
• 5Y*: 13.43%
• 10Y*: 16.21%

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

LCOW vs. GQETX - Yearly Performance Comparison

	2026 (YTD)	2025
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	7.16%	20.51%
GQETX GMO Quality Fund	6.06%	19.50%

Correlation

The correlation between LCOW and GQETX is 0.86, 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	0.86
Correlation (All Time) Calculated using the full available price history since May 8, 2025	0.86

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

Return for Risk

LCOW vs. GQETX — Risk / Return Rank

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

LCOW

LCOW Risk / Return Rank: 52
LCOW Sharpe Ratio Rank: 54
LCOW Sortino Ratio Rank: 54
LCOW Omega Ratio Rank: 53
LCOW Calmar Ratio Rank: 44
LCOW Martin Ratio Rank: 54

GQETX

GQETX Risk / Return Rank: 36
GQETX Sharpe Ratio Rank: 44
GQETX Sortino Ratio Rank: 42
GQETX Omega Ratio Rank: 39
GQETX Calmar Ratio Rank: 23
GQETX Martin Ratio Rank: 31

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. GQETX - 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 GMO Quality Fund (GQETX). 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.

	LCOW	GQETX	Difference
Sharpe ratio Return per unit of total volatility	1.89	1.94	-0.05
Sortino ratio Return per unit of downside risk	2.65	2.74	-0.09
Omega ratio Gain probability vs. loss probability	1.33	1.34	0.00
Calmar ratio Return relative to maximum drawdown	2.23	1.85	+0.38
Martin ratio Return relative to average drawdown	9.41	7.35	+2.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

LCOW vs. GQETX - Sharpe Ratio Comparison

The current LCOW Sharpe Ratio is 1.89, which is comparable to the GQETX Sharpe Ratio of 1.94. The chart below compares the historical Sharpe Ratios of LCOW and GQETX, 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

	LCOW	GQETX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.89	1.94	-0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.85	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.95	—
Sharpe Ratio (All Time) Calculated using the full available price history	2.21	0.72	+1.49

Drawdowns

LCOW vs. GQETX - Drawdown Comparison

The maximum LCOW drawdown since its inception was -10.34%, smaller than the maximum GQETX drawdown of -39.99%. Use the drawdown chart below to compare losses from any high point for LCOW and GQETX.

Drawdown Indicators

	LCOW	GQETX	Difference
Max Drawdown Largest peak-to-trough decline	-10.34%	-39.99%	+29.65%
Max Drawdown (1Y) Largest decline over 1 year	-10.34%	-12.76%	+2.42%
Max Drawdown (3Y) Largest decline over 3 years	—	-15.54%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-24.22%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-30.44%	—
Current Drawdown Current decline from peak	0.00%	-0.03%	+0.03%
Average Drawdown Average peak-to-trough decline	-1.38%	-5.00%	+3.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.45%	3.22%	-0.77%

Volatility

LCOW vs. GQETX - Volatility Comparison

The current volatility for Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) is 2.20%, while GMO Quality Fund (GQETX) has a volatility of 2.77%. This indicates that LCOW experiences smaller price fluctuations and is considered to be less risky than GQETX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCOW	GQETX	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.20%	2.77%	-0.57%
Volatility (6M) Calculated over the trailing 6-month period	9.19%	9.49%	-0.30%
Volatility (1Y) Calculated over the trailing 1-year period	12.04%	12.26%	-0.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.33%	15.86%	-3.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.33%	17.07%	-4.74%

LCOW vs. GQETX - Expense Ratio Comparison

Both LCOW and GQETX have an expense ratio of 0.49%.

Dividends

LCOW vs. GQETX - Dividend Comparison

LCOW's dividend yield for the trailing twelve months is around 0.50%, less than GQETX's 10.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GQETX GMO Quality Fund	10.52%	11.16%	3.91%	3.43%	11.85%	10.19%	13.61%	8.08%	21.66%	8.10%	3.56%	17.25%
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	0.50%	0.43%	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 LCOW and GQETX in my portfolio?

LCOW and GQETX have a correlation of 0.86, 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 GQETX?

GQETX has higher volatility (2.77%) compared to LCOW (2.20%). In terms of maximum drawdown, LCOW dropped -10.34% vs GQETX's -39.99%.

Which has better risk-adjusted returns?

GQETX currently has the higher Sharpe Ratio (1.94 vs 1.89), 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.