PSFO vs. HEQT

Last updated Jun 24, 2026

PSFO (Pacer Swan SOS Flex (October) ETF) and HEQT (Simplify Hedged Equity ETF) are both exchange-traded funds - PSFO is a Options Trading fund actively managed by Pacer, while HEQT is a Equity Hedged fund actively managed by Simplify. Both are actively managed. Over the past 3 years, PSFO returned 12.39%/yr vs 12.95%/yr for HEQT. Their correlation of 0.85 suggests significant overlap in exposure. PSFO charges 0.60%/yr vs 0.43%/yr for HEQT.

Performance

PSFO vs. HEQT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Pacer Swan SOS Flex (October) ETF (PSFO) and Simplify Hedged Equity ETF (HEQT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSFO achieves a 5.92% return, which is significantly higher than HEQT's 4.02% return.

PSFO

• 1D: -0.63%
• 1M: -0.07%
• YTD: 5.92%
• 6M: 5.46%
• 1Y: 16.06%
• 3Y*: 12.39%
• 5Y*: —
• 10Y*: —

HEQT

• 1D: -0.71%
• 1M: -0.14%
• YTD: 4.02%
• 6M: 3.76%
• 1Y: 13.00%
• 3Y*: 12.95%
• 5Y*: —
• 10Y*: —

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

PSFO vs. HEQT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
PSFO Pacer Swan SOS Flex (October) ETF	5.92%	12.93%	10.78%	20.03%	-0.34%	1.74%
HEQT Simplify Hedged Equity ETF	4.02%	10.08%	18.30%	16.61%	-8.25%	2.11%

Correlation

The correlation between PSFO and HEQT is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (All Time) Calculated using the full available price history since Nov 2, 2021	0.85

The correlation between PSFO and HEQT has been stable across timeframes, ranging from 0.81 to 0.85 - a consistent structural relationship.

Return for Risk

PSFO vs. HEQT — Risk / Return Rank

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

PSFO

PSFO Risk / Return Rank: 76
PSFO Sharpe Ratio Rank: 75
PSFO Sortino Ratio Rank: 79
PSFO Omega Ratio Rank: 79
PSFO Calmar Ratio Rank: 68
PSFO Martin Ratio Rank: 81

HEQT

HEQT Risk / Return Rank: 63
HEQT Sharpe Ratio Rank: 62
HEQT Sortino Ratio Rank: 62
HEQT Omega Ratio Rank: 70
HEQT Calmar Ratio Rank: 54
HEQT Martin Ratio Rank: 66

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.

PSFO vs. HEQT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Pacer Swan SOS Flex (October) ETF (PSFO) and Simplify Hedged Equity ETF (HEQT). 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.

	PSFO	HEQT	Difference
Sharpe ratio: Return per unit of total volatility	2.20	1.97	+0.23
Sortino ratio: Return per unit of downside risk	3.19	2.77	+0.42
Omega ratio: Gain probability vs. loss probability	1.42	1.40	+0.03
Calmar ratio: Return relative to maximum drawdown	3.10	2.56	+0.54
Martin ratio: Return relative to average drawdown	14.83	11.59	+3.25

PSFO vs. HEQT - Sharpe Ratio Comparison

The current PSFO Sharpe Ratio is 2.20, which is comparable to the HEQT Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of PSFO and HEQT, 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

PSFO vs. HEQT - Drawdown Comparison

The maximum PSFO drawdown since its inception was -12.09%, which is greater than HEQT's maximum drawdown of -11.51%. Use the drawdown chart below to compare losses from any high point for PSFO and HEQT.

Drawdown Indicators

	PSFO	HEQT	Difference
Max Drawdown Largest peak-to-trough decline	-12.09%	-11.51%	-0.58%
Max Drawdown (1Y) Largest decline over 1 year	-5.20%	-5.09%	-0.11%
Max Drawdown (3Y) Largest decline over 3 years	-12.09%	-10.57%	-1.52%
Current Drawdown Current decline from peak	-0.89%	-1.12%	+0.23%
Average Drawdown Average peak-to-trough decline	-1.74%	-2.77%	+1.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.09%	1.12%	-0.03%

Volatility

PSFO vs. HEQT - Volatility Comparison

Pacer Swan SOS Flex (October) ETF (PSFO) and Simplify Hedged Equity ETF (HEQT) have volatilities of 2.03% and 2.06%, 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

	PSFO	HEQT	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.03%	2.06%	-0.03%
Volatility (6M) Calculated over the trailing 6-month period	5.69%	5.49%	+0.20%
Volatility (1Y) Calculated over the trailing 1-year period	7.38%	6.64%	+0.74%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.03%	8.47%	+1.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.03%	8.47%	+1.56%

PSFO vs. HEQT - Expense Ratio Comparison

PSFO has a 0.60% expense ratio, which is higher than HEQT's 0.43% expense ratio.

Dividends

PSFO vs. HEQT - Dividend Comparison

PSFO has not paid dividends to shareholders, while HEQT's dividend yield for the trailing twelve months is around 1.20%.

Position	TTM	2025	2024	2023	2022	2021
HEQT Simplify Hedged Equity ETF	1.20%	1.19%	1.29%	4.10%	3.94%	0.27%
PSFO Pacer Swan SOS Flex (October) ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PSFO and HEQT in my portfolio?

PSFO and HEQT have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSFO or HEQT?

HEQT has higher volatility (2.06%) compared to PSFO (2.03%). In terms of maximum drawdown, PSFO dropped -12.09% vs HEQT's -11.51%.

Which ETF is better, PSFO or HEQT?

On 3-year performance, HEQT leads with 12.95% vs 12.39% for PSFO. On fees, HEQT is cheaper at 0.43% 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, PSFO or HEQT?

Over the 3-year period, HEQT has performed better with a 12.95% return vs 12.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSFO or HEQT?

HEQT is cheaper with a 0.43% expense ratio, compared with 0.60% for PSFO.

Which ETF pays a higher dividend yield, PSFO or HEQT?

HEQT has the higher dividend yield at 1.20%, compared with 0.00% for PSFO.

What is the main difference between PSFO and HEQT?

PSFO is categorized as Options Trading, while HEQT is Equity Hedged. They also come from different issuers: Pacer and Simplify. Their fees differ too: 0.60% for PSFO and 0.43% for HEQT.

Which has better risk-adjusted returns?

PSFO currently has the higher Sharpe Ratio (2.20 vs 1.97), 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.