PSMO vs. HEQT

Last updated Jun 24, 2026

PSMO (Pacer Swan SOS Moderate (October) ETF) and HEQT (Simplify Hedged Equity ETF) are both exchange-traded funds - PSMO 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, PSMO returned 11.84%/yr vs 12.95%/yr for HEQT. Their correlation of 0.80 suggests significant overlap in exposure. PSMO charges 0.60%/yr vs 0.43%/yr for HEQT.

Performance

PSMO vs. HEQT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Pacer Swan SOS Moderate (October) ETF (PSMO) 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, PSMO achieves a 5.01% return, which is significantly higher than HEQT's 4.02% return.

PSMO

• 1D: -0.45%
• 1M: 0.05%
• YTD: 5.01%
• 6M: 4.46%
• 1Y: 13.37%
• 3Y*: 11.84%
• 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)

PSMO vs. HEQT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
PSMO Pacer Swan SOS Moderate (October) ETF	5.01%	11.44%	9.44%	20.50%	-1.32%	1.92%
HEQT Simplify Hedged Equity ETF	4.02%	10.08%	18.30%	16.61%	-8.25%	2.11%

Correlation

The correlation between PSMO and HEQT is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.75
Correlation (All Time) Calculated using the full available price history since Nov 2, 2021	0.80

The correlation between PSMO and HEQT has been stable across timeframes, ranging from 0.75 to 0.83 - a consistent structural relationship.

Return for Risk

PSMO vs. HEQT — Risk / Return Rank

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

PSMO

PSMO Risk / Return Rank: 78
PSMO Sharpe Ratio Rank: 78
PSMO Sortino Ratio Rank: 83
PSMO Omega Ratio Rank: 82
PSMO Calmar Ratio Rank: 66
PSMO Martin Ratio Rank: 82

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.

PSMO vs. HEQT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Pacer Swan SOS Moderate (October) ETF (PSMO) 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.

	PSMO	HEQT	Difference
Sharpe ratio: Return per unit of total volatility	2.26	1.97	+0.29
Sortino ratio: Return per unit of downside risk	3.33	2.77	+0.56
Omega ratio: Gain probability vs. loss probability	1.45	1.40	+0.05
Calmar ratio: Return relative to maximum drawdown	3.00	2.56	+0.43
Martin ratio: Return relative to average drawdown	15.09	11.59	+3.50

PSMO vs. HEQT - Sharpe Ratio Comparison

The current PSMO Sharpe Ratio is 2.26, which is comparable to the HEQT Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of PSMO 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

PSMO vs. HEQT - Drawdown Comparison

The maximum PSMO drawdown since its inception was -9.77%, smaller than the maximum HEQT drawdown of -11.51%. Use the drawdown chart below to compare losses from any high point for PSMO and HEQT.

Drawdown Indicators

	PSMO	HEQT	Difference
Max Drawdown Largest peak-to-trough decline	-9.77%	-11.51%	+1.74%
Max Drawdown (1Y) Largest decline over 1 year	-4.48%	-5.09%	+0.61%
Max Drawdown (3Y) Largest decline over 3 years	-9.77%	-10.57%	+0.80%
Current Drawdown Current decline from peak	-0.66%	-1.12%	+0.46%
Average Drawdown Average peak-to-trough decline	-1.32%	-2.77%	+1.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.89%	1.12%	-0.23%

Volatility

PSMO vs. HEQT - Volatility Comparison

The current volatility for Pacer Swan SOS Moderate (October) ETF (PSMO) is 1.62%, while Simplify Hedged Equity ETF (HEQT) has a volatility of 2.06%. This indicates that PSMO experiences smaller price fluctuations and is considered to be less risky than HEQT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSMO	HEQT	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.62%	2.06%	-0.44%
Volatility (6M) Calculated over the trailing 6-month period	4.70%	5.49%	-0.79%
Volatility (1Y) Calculated over the trailing 1-year period	5.99%	6.64%	-0.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.38%	8.47%	-0.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.38%	8.47%	-0.09%

PSMO vs. HEQT - Expense Ratio Comparison

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

Dividends

PSMO vs. HEQT - Dividend Comparison

PSMO 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%
PSMO Pacer Swan SOS Moderate (October) ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PSMO and HEQT in my portfolio?

PSMO and HEQT have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSMO or HEQT?

HEQT has higher volatility (2.06%) compared to PSMO (1.62%). In terms of maximum drawdown, PSMO dropped -9.77% vs HEQT's -11.51%.

Which ETF is better, PSMO or HEQT?

On 3-year performance, HEQT leads with 12.95% vs 11.84% for PSMO. On fees, HEQT is cheaper at 0.43% per year. On volatility, PSMO has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSMO or HEQT?

Over the 3-year period, HEQT has performed better with a 12.95% return vs 11.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSMO or HEQT?

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

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

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

What is the main difference between PSMO and HEQT?

PSMO 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 PSMO and 0.43% for HEQT.

Which has better risk-adjusted returns?

PSMO currently has the higher Sharpe Ratio (2.26 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.