QLTY vs. LCOW

Last updated Jun 3, 2026

QLTY (GMO U.S. Quality ETF) and LCOW (Pacer S&P 500 Quality FCF Aristocrats ETF) are both exchange-traded funds - QLTY is a Large Cap Blend Equities fund tracking the S&P 500, while LCOW is a S&P 500 fund tracking the S&P 500 Quality FCF Aristocrats Index. Both are passively managed. Over the past year, QLTY returned 28.67% vs 22.61% for LCOW. Their correlation of 0.87 suggests significant overlap in exposure. QLTY charges 0.50%/yr vs 0.49%/yr for LCOW.

Performance

QLTY vs. LCOW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in GMO U.S. Quality ETF (QLTY) and Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QLTY achieves a 7.91% return, which is significantly higher than LCOW's 7.16% return.

QLTY

• 1D: -0.17%
• 1M: 3.91%
• YTD: 7.91%
• 6M: 8.88%
• 1Y: 28.67%
• 3Y*: —
• 5Y*: —
• 10Y*: —

LCOW

• 1D: 0.04%
• 1M: 5.81%
• YTD: 7.16%
• 6M: 8.01%
• 1Y: 22.61%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

QLTY vs. LCOW - Yearly Performance Comparison

	2026 (YTD)	2025
QLTY GMO U.S. Quality ETF	7.91%	23.38%
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	7.16%	20.51%

Correlation

The correlation between QLTY and LCOW is 0.87, 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	0.87
Correlation (All Time) Calculated using the full available price history since May 8, 2025	0.87

The correlation between QLTY and LCOW has been stable across timeframes, ranging from 0.87 to 0.87 - a consistent structural relationship.

Return for Risk

QLTY vs. LCOW — Risk / Return Rank

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

QLTY

QLTY Risk / Return Rank: 64
QLTY Sharpe Ratio Rank: 71
QLTY Sortino Ratio Rank: 72
QLTY Omega Ratio Rank: 69
QLTY Calmar Ratio Rank: 49
QLTY Martin Ratio Rank: 57

LCOW

LCOW Risk / Return Rank: 52
LCOW Sharpe Ratio Rank: 54
LCOW Sortino Ratio Rank: 54
LCOW Omega Ratio Rank: 53
LCOW Calmar Ratio Rank: 44
LCOW Martin Ratio Rank: 54

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.

QLTY vs. LCOW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for GMO U.S. Quality ETF (QLTY) and Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW). 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.

	QLTY	LCOW	Difference
Sharpe ratio Return per unit of total volatility	2.35	1.89	+0.46
Sortino ratio Return per unit of downside risk	3.33	2.65	+0.68
Omega ratio Gain probability vs. loss probability	1.42	1.33	+0.08
Calmar ratio Return relative to maximum drawdown	2.48	2.23	+0.24
Martin ratio Return relative to average drawdown	10.13	9.41	+0.73
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QLTY vs. LCOW - Sharpe Ratio Comparison

The current QLTY Sharpe Ratio is 2.35, which is comparable to the LCOW Sharpe Ratio of 1.89. The chart below compares the historical Sharpe Ratios of QLTY and LCOW, 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

	QLTY	LCOW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.35	1.89	+0.46
Sharpe Ratio (All Time) Calculated using the full available price history	1.55	2.21	-0.66

Drawdowns

QLTY vs. LCOW - Drawdown Comparison

The maximum QLTY drawdown since its inception was -17.00%, which is greater than LCOW's maximum drawdown of -10.34%. Use the drawdown chart below to compare losses from any high point for QLTY and LCOW.

Drawdown Indicators

	QLTY	LCOW	Difference
Max Drawdown Largest peak-to-trough decline	-17.00%	-10.34%	-6.66%
Max Drawdown (1Y) Largest decline over 1 year	-11.71%	-10.34%	-1.37%
Current Drawdown Current decline from peak	-0.22%	0.00%	-0.22%
Average Drawdown Average peak-to-trough decline	-2.05%	-1.38%	-0.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.86%	2.45%	+0.41%

Volatility

QLTY vs. LCOW - Volatility Comparison

GMO U.S. Quality ETF (QLTY) has a higher volatility of 2.65% compared to Pacer S&P 500 Quality FCF Aristocrats ETF (LCOW) at 2.20%. This indicates that QLTY's price experiences larger fluctuations and is considered to be riskier than LCOW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	QLTY	LCOW	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.65%	2.20%	+0.45%
Volatility (6M) Calculated over the trailing 6-month period	9.24%	9.19%	+0.05%
Volatility (1Y) Calculated over the trailing 1-year period	12.25%	12.04%	+0.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.65%	12.33%	+2.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.65%	12.33%	+2.32%

QLTY vs. LCOW - Expense Ratio Comparison

QLTY has a 0.50% expense ratio, which is higher than LCOW's 0.49% expense ratio.

Dividends

QLTY vs. LCOW - Dividend Comparison

QLTY's dividend yield for the trailing twelve months is around 0.71%, more than LCOW's 0.50% yield.

Position	TTM	2025	2024	2023
LCOW Pacer S&P 500 Quality FCF Aristocrats ETF	0.50%	0.43%	0.00%	0.00%
QLTY GMO U.S. Quality ETF	0.71%	0.73%	0.79%	0.15%

Frequently Asked Questions

Can I hold both QLTY and LCOW in my portfolio?

QLTY and LCOW have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QLTY or LCOW?

QLTY has higher volatility (2.65%) compared to LCOW (2.20%). In terms of maximum drawdown, QLTY dropped -17.00% vs LCOW's -10.34%.

Which ETF is better, QLTY or LCOW?

On 1-year performance, QLTY leads with 28.67% vs 22.61% for LCOW. On fees, LCOW is cheaper at 0.49% per year. On volatility, LCOW has been the lower-risk option at 2.20%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QLTY or LCOW?

Over the 1-year period, QLTY has performed better with a 28.67% return vs 22.61%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QLTY or LCOW?

LCOW is cheaper with a 0.49% expense ratio, compared with 0.50% for QLTY.

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

QLTY has the higher dividend yield at 0.71%, compared with 0.50% for LCOW.

What is the main difference between QLTY and LCOW?

QLTY is categorized as Large Cap Blend Equities, while LCOW is S&P 500. QLTY tracks S&P 500, while LCOW tracks S&P 500 Quality FCF Aristocrats Index. They also come from different issuers: GMO and Pacer. Their fees differ too: 0.50% for QLTY and 0.49% for LCOW.

Which has better risk-adjusted returns?

QLTY currently has the higher Sharpe Ratio (2.35 vs 1.89), 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.