PSQO vs. BALT

Last updated Jun 4, 2026

PSQO (Palmer Square Credit Opportunities ETF) and BALT (Innovator Defined Wealth Shield ETF) are both exchange-traded funds - PSQO is a Multisector Bonds fund actively managed by Palmer Square, while BALT is a Defined Outcome fund tracking the S&P 500. PSQO is actively managed, while BALT is passively managed. Over the past year, PSQO returned 5.72% vs 6.95% for BALT. At a 0.20 correlation, their price movements are largely independent. PSQO charges 0.52%/yr vs 0.69%/yr for BALT.

Performance

PSQO vs. BALT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Palmer Square Credit Opportunities ETF (PSQO) and Innovator Defined Wealth Shield ETF (BALT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, PSQO achieves a 1.63% return, which is significantly lower than BALT's 1.91% return.

PSQO

• 1D: -0.17%
• 1M: 0.53%
• YTD: 1.63%
• 6M: 2.13%
• 1Y: 5.72%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BALT

• 1D: -0.06%
• 1M: 0.53%
• YTD: 1.91%
• 6M: 2.81%
• 1Y: 6.95%
• 3Y*: 7.27%
• 5Y*: —
• 10Y*: —

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

PSQO vs. BALT - Yearly Performance Comparison

	2026 (YTD)	2025	2024
PSQO Palmer Square Credit Opportunities ETF	1.63%	7.05%	1.96%
BALT Innovator Defined Wealth Shield ETF	1.91%	6.65%	2.93%

Correlation

The correlation between PSQO and BALT is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (All Time) Calculated using the full available price history since Sep 13, 2024	0.20

Return for Risk

PSQO vs. BALT — Risk / Return Rank

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

PSQO

PSQO Risk / Return Rank: 96
PSQO Sharpe Ratio Rank: 94
PSQO Sortino Ratio Rank: 97
PSQO Omega Ratio Rank: 97
PSQO Calmar Ratio Rank: 96
PSQO Martin Ratio Rank: 96

BALT

BALT Risk / Return Rank: 92
BALT Sharpe Ratio Rank: 90
BALT Sortino Ratio Rank: 94
BALT Omega Ratio Rank: 93
BALT Calmar Ratio Rank: 91
BALT Martin Ratio Rank: 91

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.

PSQO vs. BALT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Palmer Square Credit Opportunities ETF (PSQO) and Innovator Defined Wealth Shield ETF (BALT). 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.

	PSQO	BALT	Difference
Sharpe ratio Return per unit of total volatility	3.71	3.19	+0.52
Sortino ratio Return per unit of downside risk	6.38	4.88	+1.50
Omega ratio Gain probability vs. loss probability	1.85	1.67	+0.18
Calmar ratio Return relative to maximum drawdown	8.69	6.05	+2.63
Martin ratio Return relative to average drawdown	35.71	22.58	+13.14
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PSQO vs. BALT - Sharpe Ratio Comparison

The current PSQO Sharpe Ratio is 3.71, which is comparable to the BALT Sharpe Ratio of 3.19. The chart below compares the historical Sharpe Ratios of PSQO and BALT, 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

	PSQO	BALT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.71	3.19	+0.52
Sharpe Ratio (All Time) Calculated using the full available price history	3.13	1.80	+1.33

Drawdowns

PSQO vs. BALT - Drawdown Comparison

The maximum PSQO drawdown since its inception was -0.76%, smaller than the maximum BALT drawdown of -4.89%. Use the drawdown chart below to compare losses from any high point for PSQO and BALT.

Drawdown Indicators

	PSQO	BALT	Difference
Max Drawdown Largest peak-to-trough decline	-0.76%	-4.89%	+4.13%
Max Drawdown (1Y) Largest decline over 1 year	-0.66%	-1.15%	+0.49%
Max Drawdown (3Y) Largest decline over 3 years	—	-4.89%	—
Current Drawdown Current decline from peak	-0.17%	-0.06%	-0.11%
Average Drawdown Average peak-to-trough decline	-0.11%	-0.34%	+0.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.16%	0.31%	-0.15%

Volatility

PSQO vs. BALT - Volatility Comparison

Palmer Square Credit Opportunities ETF (PSQO) has a higher volatility of 0.57% compared to Innovator Defined Wealth Shield ETF (BALT) at 0.37%. This indicates that PSQO's price experiences larger fluctuations and is considered to be riskier than BALT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PSQO	BALT	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.57%	0.37%	+0.20%
Volatility (6M) Calculated over the trailing 6-month period	1.27%	1.56%	-0.29%
Volatility (1Y) Calculated over the trailing 1-year period	1.55%	2.19%	-0.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	2.00%	3.32%	-1.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	2.00%	3.32%	-1.32%

PSQO vs. BALT - Expense Ratio Comparison

PSQO has a 0.52% expense ratio, which is lower than BALT's 0.69% expense ratio.

Dividends

PSQO vs. BALT - Dividend Comparison

PSQO's dividend yield for the trailing twelve months is around 4.13%, while BALT has not paid dividends to shareholders.

Position	TTM	2025	2024
BALT Innovator Defined Wealth Shield ETF	0.00%	0.00%	0.00%
PSQO Palmer Square Credit Opportunities ETF	4.13%	4.45%	1.40%

Frequently Asked Questions

Can I hold both PSQO and BALT in my portfolio?

PSQO and BALT have a correlation of 0.21, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, PSQO or BALT?

PSQO has higher volatility (0.57%) compared to BALT (0.37%). In terms of maximum drawdown, PSQO dropped -0.76% vs BALT's -4.89%.

Which ETF is better, PSQO or BALT?

On 1-year performance, BALT leads with 6.95% vs 5.72% for PSQO. On fees, PSQO is cheaper at 0.52% per year. On volatility, BALT has been the lower-risk option at 0.37%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PSQO or BALT?

Over the 1-year period, BALT has performed better with a 6.95% return vs 5.72%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PSQO or BALT?

PSQO is cheaper with a 0.52% expense ratio, compared with 0.69% for BALT.

Which ETF pays a higher dividend yield, PSQO or BALT?

PSQO has the higher dividend yield at 4.13%, compared with 0.00% for BALT.

What is the main difference between PSQO and BALT?

PSQO is categorized as Multisector Bonds, while BALT is Defined Outcome. They also come from different issuers: Palmer Square and Innovator. Their fees differ too: 0.52% for PSQO and 0.69% for BALT.

Which has better risk-adjusted returns?

PSQO currently has the higher Sharpe Ratio (3.71 vs 3.19), 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.