XYLD vs. GCOW

Last updated Jun 9, 2026

XYLD (Global X S&P 500 Covered Call ETF) and GCOW (Pacer Global Cash Cows Dividend ETF) are both exchange-traded funds - XYLD is a Derivative Income fund tracking the Cboe S&P 500 BuyWrite Index, while GCOW is a Large Cap Value Equities fund tracking the Pacer Global Cash Cows Dividends Index. Both are passively managed. Over the past 10 years, XYLD returned 8.23%/yr vs 9.99%/yr for GCOW. A 0.59 correlation means they provide meaningful diversification when combined. Both charge a 0.60% expense ratio.

Performance

XYLD vs. GCOW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X S&P 500 Covered Call ETF (XYLD) and Pacer Global Cash Cows Dividend ETF (GCOW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XYLD achieves a 4.47% return, which is significantly lower than GCOW's 11.39% return. Over the past 10 years, XYLD has underperformed GCOW with an annualized return of 8.23%, while GCOW has yielded a comparatively higher 9.99% annualized return.

XYLD

• 1D: 0.27%
• 1M: 0.88%
• YTD: 4.47%
• 6M: 5.83%
• 1Y: 16.60%
• 3Y*: 10.96%
• 5Y*: 7.62%
• 10Y*: 8.23%

GCOW

• 1D: 0.16%
• 1M: -0.16%
• YTD: 11.39%
• 6M: 13.49%
• 1Y: 25.84%
• 3Y*: 16.76%
• 5Y*: 12.20%
• 10Y*: 9.99%

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

XYLD vs. GCOW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XYLD Global X S&P 500 Covered Call ETF	4.47%	8.02%	19.49%	11.10%	-12.05%	19.59%	-0.56%	21.41%	-6.09%	16.49%
GCOW Pacer Global Cash Cows Dividend ETF	11.39%	27.34%	3.52%	13.95%	5.49%	14.58%	-4.33%	17.81%	-7.99%	20.71%

Correlation

The correlation between XYLD and GCOW is 0.30, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.30
Correlation (3Y) Calculated over the trailing 3-year period	0.39
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since Feb 24, 2016	0.59

Over the past year, the correlation between XYLD and GCOW has dropped to 0.30 - well below their long-term average of 0.59, suggesting their price drivers have been diverging.

XYLD vs. GCOW - Sectors Allocation Comparison

Sectors	XYLD	GCOW
Technology	35.6%	0.9%
Financial Services	11.8%	-
Communication Services	11.2%	14.6%
Consumer Cyclical	10.2%	4.6%
Healthcare	8.5%	14.6%
Industrials	8.3%	12.4%
Consumer Defensive	4.9%	17.1%
Energy	3.5%	24.4%
Utilities	2.3%	4.1%
Real Estate	1.9%	-
Basic Materials	1.8%	7.3%

Return for Risk

XYLD vs. GCOW — Risk / Return Rank

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

XYLD

XYLD Risk / Return Rank: 84
XYLD Sharpe Ratio Rank: 86
XYLD Sortino Ratio Rank: 87
XYLD Omega Ratio Rank: 93
XYLD Calmar Ratio Rank: 69
XYLD Martin Ratio Rank: 86

GCOW

GCOW Risk / Return Rank: 83
GCOW Sharpe Ratio Rank: 82
GCOW Sortino Ratio Rank: 85
GCOW Omega Ratio Rank: 78
GCOW Calmar Ratio Rank: 92
GCOW Martin Ratio Rank: 79

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.

XYLD vs. GCOW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X S&P 500 Covered Call ETF (XYLD) and Pacer Global Cash Cows Dividend ETF (GCOW). 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.

	XYLD	GCOW	Difference
Sharpe ratio: Return per unit of total volatility	2.53	2.39	+0.14
Sortino ratio: Return per unit of downside risk	3.58	3.45	+0.13
Omega ratio: Gain probability vs. loss probability	1.59	1.42	+0.18
Calmar ratio: Return relative to maximum drawdown	3.15	5.44	-2.29
Martin ratio: Return relative to average drawdown	16.73	14.07	+2.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XYLD vs. GCOW - Sharpe Ratio Comparison

The current XYLD Sharpe Ratio is 2.53, which is comparable to the GCOW Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of XYLD and GCOW, 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

	XYLD	GCOW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.53	2.39	+0.14
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.91	-0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.62	-0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.58	+0.02

Drawdowns

XYLD vs. GCOW - Drawdown Comparison

The maximum XYLD drawdown since its inception was -33.46%, smaller than the maximum GCOW drawdown of -37.64%. Use the drawdown chart below to compare losses from any high point for XYLD and GCOW.

Drawdown Indicators

	XYLD	GCOW	Difference
Max Drawdown Largest peak-to-trough decline	-33.46%	-37.64%	+4.18%
Max Drawdown (1Y) Largest decline over 1 year	-5.29%	-4.77%	-0.52%
Max Drawdown (3Y) Largest decline over 3 years	-15.53%	-12.35%	-3.18%
Max Drawdown (5Y) Largest decline over 5 years	-18.66%	-21.48%	+2.82%
Max Drawdown (10Y) Largest decline over 10 years	-33.46%	-37.64%	+4.18%
Current Drawdown Current decline from peak	-0.64%	-3.42%	+2.78%
Average Drawdown Average peak-to-trough decline	-3.72%	-5.84%	+2.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.99%	1.84%	-0.85%

Volatility

XYLD vs. GCOW - Volatility Comparison

The current volatility for Global X S&P 500 Covered Call ETF (XYLD) is 1.33%, while Pacer Global Cash Cows Dividend ETF (GCOW) has a volatility of 2.48%. This indicates that XYLD experiences smaller price fluctuations and is considered to be less risky than GCOW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XYLD	GCOW	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.33%	2.48%	-1.15%
Volatility (6M) Calculated over the trailing 6-month period	5.46%	8.02%	-2.56%
Volatility (1Y) Calculated over the trailing 1-year period	6.60%	10.86%	-4.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.23%	13.49%	-2.26%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.21%	16.20%	-1.99%

XYLD vs. GCOW - Expense Ratio Comparison

Both XYLD and GCOW have an expense ratio of 0.60%.

Dividends

XYLD vs. GCOW - Dividend Comparison

XYLD's dividend yield for the trailing twelve months is around 10.57%, more than GCOW's 4.72% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GCOW Pacer Global Cash Cows Dividend ETF	4.72%	4.06%	5.14%	5.28%	4.39%	4.23%	4.12%	4.40%	3.94%	2.79%	1.95%	0.00%
XYLD Global X S&P 500 Covered Call ETF	10.57%	10.51%	11.54%	10.51%	13.43%	9.07%	7.93%	5.76%	7.12%	5.18%	3.23%	4.65%

Frequently Asked Questions

Can I hold both XYLD and GCOW in my portfolio?

XYLD and GCOW have a correlation of 0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XYLD or GCOW?

GCOW has higher volatility (2.48%) compared to XYLD (1.33%). In terms of maximum drawdown, XYLD dropped -33.46% vs GCOW's -37.64%.

Which ETF is better, XYLD or GCOW?

On 10-year performance, GCOW leads with 9.99% vs 8.23% for XYLD. Both ETFs have the same 0.60% expense ratio. On volatility, XYLD has been the lower-risk option at 1.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XYLD or GCOW?

Over the 10-year period, GCOW has performed better with a 9.99% return vs 8.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XYLD or GCOW?

XYLD and GCOW have the same expense ratio: 0.60% per year.

Which ETF pays a higher dividend yield, XYLD or GCOW?

XYLD has the higher dividend yield at 10.57%, compared with 4.72% for GCOW.

What is the main difference between XYLD and GCOW?

XYLD is categorized as Derivative Income, while GCOW is Large Cap Value Equities. XYLD tracks Cboe S&P 500 BuyWrite Index, while GCOW tracks Pacer Global Cash Cows Dividends Index. They also come from different issuers: Global X and Pacer.

Which has better risk-adjusted returns?

XYLD currently has the higher Sharpe Ratio (2.53 vs 2.39), 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.