LCOW vs. VFQY

Last updated Aug 1, 2026

LCOW (Pacer S&P 500 Quality FCF Aristocrats ETF) and VFQY (Vanguard U.S. Quality Factor ETF) are both Quality Factor funds. LCOW is passively managed, while VFQY is actively managed. Over the past year, LCOW returned 19.31% vs 22.01% for VFQY. Their 0.77 correlation means they have sometimes moved together and sometimes differently. LCOW charges 0.49%/yr vs 0.13%/yr for VFQY.

Performance

LCOW vs. VFQY - 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 Vanguard U.S. Quality Factor ETF (VFQY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LCOW achieves a 8.56% return, which is significantly lower than VFQY's 13.01% return.

LCOW

• 1D: 0.52%
• 1M: 1.05%
• 6M: 8.03%
• YTD: 8.56%
• 1Y: 19.31%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 24.36%

VFQY

• 1D: -0.04%
• 1M: 1.15%
• 6M: 10.45%
• YTD: 13.01%
• 1Y: 22.01%
• 3Y*: 14.60%
• 5Y*: 8.92%
• 10Y*: —
• ALL TIME*: 11.49%

*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)
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	$104.13K	$83.33K	$122.50K
VFQY Vanguard U.S. Quality Factor ETF	$877.35K	$995.36K	$1.05M

LCOW vs. VFQY - Yearly Performance Comparison

	2026 (YTD)	2025
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	8.56%	20.51%
VFQY Vanguard U.S. Quality Factor ETF	13.01%	16.61%

Correlation

The correlation between LCOW and VFQY is 0.78, 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.	0.78
Correlation (All Time) Calculated using the full available price history since May 7, 2025	0.77

The correlation between LCOW and VFQY has been stable across timeframes, ranging from 0.77 to 0.78 - a consistent structural relationship.

Return for Risk

LCOW vs. VFQY — Risk / Return Rank

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

LCOW

LCOW Risk / Return Rank: 58
LCOW Sharpe Ratio Rank: 62
LCOW Sortino Ratio Rank: 62
LCOW Omega Ratio Rank: 57
LCOW Calmar Ratio Rank: 48
LCOW Martin Ratio Rank: 59

VFQY

VFQY Risk / Return Rank: 67
VFQY Sharpe Ratio Rank: 68
VFQY Sortino Ratio Rank: 69
VFQY Omega Ratio Rank: 62
VFQY Calmar Ratio Rank: 65
VFQY Martin Ratio Rank: 70

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.

LCOW vs. VFQY - 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 Vanguard U.S. Quality Factor ETF (VFQY). 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	VFQY	Difference
Sharpe ratio: Return per unit of total volatility	1.45	1.54	-0.09
Sortino ratio: Return per unit of downside risk	2.07	2.25	-0.18
Omega ratio: Gain probability vs. loss probability	1.25	1.27	-0.01
Calmar ratio: Return relative to maximum drawdown	1.75	2.26	-0.51
Martin ratio: Return relative to average drawdown	7.12	8.53	-1.41

LCOW vs. VFQY - Sharpe Ratio Comparison

The current LCOW Sharpe Ratio is 1.45, which is comparable to the VFQY Sharpe Ratio of 1.54. The chart below compares the historical Sharpe Ratios of LCOW and VFQY, 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. VFQY - Drawdown Comparison

The maximum LCOW drawdown since its inception was -10.34%, smaller than the maximum VFQY drawdown of -37.41%. Use the drawdown chart below to compare losses from any high point for LCOW and VFQY.

Drawdown Indicators

	LCOW	VFQY	Difference
Max Drawdown Largest peak-to-trough decline	-10.34%	-37.41%	+27.07%
Max Drawdown (1Y) Largest decline over 1 year	-10.34%	-9.12%	-1.22%
Max Drawdown (3Y) Largest decline over 3 years	—	-20.67%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-25.93%	—
Current Drawdown Current decline from peak	-0.83%	-0.61%	-0.22%
Average Drawdown Average peak-to-trough decline	-1.38%	-6.57%	+5.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.54%	2.41%	+0.13%

Volatility

LCOW vs. VFQY - Volatility Comparison

Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) and Vanguard U.S. Quality Factor ETF (VFQY) have volatilities of 2.89% and 2.96%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LCOW	VFQY	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.89%	2.96%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	9.71%	9.55%	+0.16%
Volatility (1Y) Calculated over the trailing 1-year period	12.50%	13.41%	-0.91%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.38%	18.28%	-5.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.38%	20.73%	-8.35%

LCOW vs. VFQY - Expense Ratio Comparison

LCOW has a 0.49% expense ratio, which is higher than VFQY's 0.13% expense ratio.

Dividends

LCOW vs. VFQY - Dividend Comparison

LCOW's dividend yield for the trailing twelve months is around 0.62%, less than VFQY's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
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%
VFQY Vanguard U.S. Quality Factor ETF	1.04%	1.17%	1.34%	1.38%	1.43%	0.98%	1.22%	1.34%	1.31%

Frequently Asked Questions

Can I hold both LCOW and VFQY in my portfolio?

LCOW and VFQY have a correlation of 0.78, 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 VFQY?

VFQY has higher volatility (2.96%) compared to LCOW (2.89%). In terms of maximum drawdown, LCOW dropped -10.34% vs VFQY's -37.41%.

Which ETF is better, LCOW or VFQY?

On 1-year performance, VFQY leads with 22.01% vs 19.31% for LCOW. On fees, VFQY is cheaper at 0.13% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LCOW or VFQY?

Over the 1-year period, VFQY has performed better with a 22.01% return vs 19.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LCOW or VFQY?

VFQY is cheaper with a 0.13% expense ratio, compared with 0.49% for LCOW.

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

VFQY has the higher dividend yield at 1.04%, compared with 0.62% for LCOW.

What is the main difference between LCOW and VFQY?

They also come from different issuers: Pacer and Vanguard. Their fees differ too: 0.49% for LCOW and 0.13% for VFQY.

Which has better risk-adjusted returns?

VFQY currently has the higher Sharpe Ratio (1.54 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.