LCOW vs. QDEF
LCOW (Pacer S&P 500 Quality FCF Aristocrats ETF) and QDEF (FlexShares Quality Dividend Defensive Index Fund) are both Quality Factor funds - LCOW tracks the S&P 500 Quality FCF Aristocrats Index while QDEF tracks the Northern Trust Quality Dividend Defensive Index. Both are passively managed. Over the past year, LCOW returned 19.31% vs 20.97% for QDEF. Their correlation of 0.88 means they have usually moved in the same direction. LCOW charges 0.49%/yr vs 0.37%/yr for QDEF.
Performance
LCOW vs. QDEF - Performance Comparison
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Returns By Period
In the year-to-date period, LCOW achieves a 8.56% return, which is significantly lower than QDEF's 10.48% return.
LCOW
- 1D
- 0.52%
- 1M
- 1.05%
- 6M
- 8.03%
- YTD
- 8.56%
- 1Y
- 19.31%
- 3Y*
- —
- 5Y*
- —
- 10Y*
- —
- ALL TIME*
- 24.36%
QDEF
- 1D
- -0.05%
- 1M
- 1.68%
- 6M
- 8.64%
- YTD
- 10.48%
- 1Y
- 20.97%
- 3Y*
- 17.66%
- 5Y*
- 12.34%
- 10Y*
- 12.14%
- ALL TIME*
- 12.72%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $104.13K | $83.33K | $122.50K | |
| $546.87K | $522.47K | $732.31K |
LCOW vs. QDEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | |
|---|---|---|
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF | 8.56% | 20.51% |
QDEF FlexShares Quality Dividend Defensive Index Fund | 10.48% | 18.81% |
Correlation
The correlation between LCOW and QDEF is 0.88, meaning they have usually moved in the same direction, including during past declines.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.88 |
Correlation (All Time) Calculated using the full available price history since May 7, 2025 | 0.88 |
The correlation between LCOW and QDEF has been stable across timeframes, ranging from 0.88 to 0.88 - a consistent structural relationship.
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Return for Risk
LCOW vs. QDEF — Risk / Return Rank
LCOW
QDEF
LCOW vs. QDEF - 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 FlexShares Quality Dividend Defensive Index Fund (QDEF). 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 | QDEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.62 | ||
| Sortino ratioReturn per unit of downside risk | -0.87 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 1.38 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 1.75 | 2.93 | -1.17 |
| Martin ratioReturn relative to average drawdown | 7.12 | 12.20 | -5.08 |
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Drawdowns
LCOW vs. QDEF - Drawdown Comparison
The maximum LCOW drawdown since its inception was -10.34%, smaller than the maximum QDEF drawdown of -35.74%. Use the drawdown chart below to compare losses from any high point for LCOW and QDEF.
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Drawdown Indicators
| LCOW | QDEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -10.34% | -35.74% | +25.40% |
Max Drawdown (1Y)Largest decline over 1 year | -10.34% | -6.95% | -3.39% |
Max Drawdown (3Y)Largest decline over 3 years | — | -14.43% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -21.37% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -35.74% | — |
Current DrawdownCurrent decline from peak | -0.83% | -0.58% | -0.25% |
Average DrawdownAverage peak-to-trough decline | -1.38% | -3.27% | +1.89% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.54% | 1.67% | +0.87% |
Volatility
LCOW vs. QDEF - Volatility Comparison
Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) has a higher volatility of 2.89% compared to FlexShares Quality Dividend Defensive Index Fund (QDEF) at 2.29%. This indicates that LCOW's price experiences larger fluctuations and is considered to be riskier than QDEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| LCOW | QDEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.89% | 2.29% | +0.60% |
Volatility (6M)Calculated over the trailing 6-month period | 9.71% | 7.47% | +2.24% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.50% | 9.85% | +2.65% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 12.38% | 13.77% | -1.39% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.38% | 16.14% | -3.76% |
LCOW vs. QDEF - Expense Ratio Comparison
LCOW has a 0.49% expense ratio, which is higher than QDEF's 0.37% expense ratio.
Dividends
LCOW vs. QDEF - Dividend Comparison
LCOW's dividend yield for the trailing twelve months is around 0.62%, less than QDEF's 1.58% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF | 0.62% | 0.43% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
QDEF FlexShares Quality Dividend Defensive Index Fund | 1.58% | 1.74% | 1.85% | 2.21% | 2.42% | 1.84% | 2.50% | 3.17% | 7.10% | 2.70% | 2.90% | 3.00% |
Frequently Asked Questions
LCOW and QDEF have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
LCOW has higher volatility (2.89%) compared to QDEF (2.29%). In terms of maximum drawdown, LCOW dropped -10.34% vs QDEF's -35.74%.
On 1-year performance, QDEF leads with 20.97% vs 19.31% for LCOW. On fees, QDEF is cheaper at 0.37% per year. On volatility, QDEF has been the lower-risk option at 2.29%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, QDEF has performed better with a 20.97% return vs 19.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
QDEF is cheaper with a 0.37% expense ratio, compared with 0.49% for LCOW.
QDEF has the higher dividend yield at 1.58%, compared with 0.62% for LCOW.
LCOW tracks S&P 500 Quality FCF Aristocrats Index, while QDEF tracks Northern Trust Quality Dividend Defensive Index. They also come from different issuers: Pacer and FlexShares. Their fees differ too: 0.49% for LCOW and 0.37% for QDEF.
QDEF currently has the higher Sharpe Ratio (2.07 vs 1.45), 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.
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