FHEQ vs. MSTB

Last updated Jun 6, 2026

FHEQ (Fidelity Hedged Equity ETF) and MSTB (LHA Market State Tactical Beta ETF) are both Equity Hedged funds. FHEQ is actively managed, while MSTB is passively managed. Over the past year, FHEQ returned 18.74% vs 18.56% for MSTB. Their correlation of 0.89 suggests significant overlap in exposure. FHEQ charges 0.48%/yr vs 1.40%/yr for MSTB.

Performance

FHEQ vs. MSTB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Fidelity Hedged Equity ETF (FHEQ) and LHA Market State Tactical Beta ETF (MSTB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with FHEQ having a 6.49% return and MSTB slightly higher at 6.56%.

FHEQ

• 1D: -2.29%
• 1M: 0.44%
• YTD: 6.49%
• 6M: 5.84%
• 1Y: 18.74%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MSTB

• 1D: -2.30%
• 1M: -0.28%
• YTD: 6.56%
• 6M: 6.29%
• 1Y: 18.56%
• 3Y*: 17.68%
• 5Y*: 8.12%
• 10Y*: —

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

FHEQ vs. MSTB - Yearly Performance Comparison

	2026 (YTD)	2025	2024
FHEQ Fidelity Hedged Equity ETF	6.49%	13.34%	10.57%
MSTB LHA Market State Tactical Beta ETF	6.56%	18.57%	8.89%

Correlation

The correlation between FHEQ and MSTB is 0.91, 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	0.91
Correlation (All Time) Calculated using the full available price history since Apr 12, 2024	0.89

The correlation between FHEQ and MSTB has been stable across timeframes, ranging from 0.89 to 0.91 - a consistent structural relationship.

Return for Risk

FHEQ vs. MSTB — Risk / Return Rank

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

FHEQ

FHEQ Risk / Return Rank: 58
FHEQ Sharpe Ratio Rank: 61
FHEQ Sortino Ratio Rank: 61
FHEQ Omega Ratio Rank: 60
FHEQ Calmar Ratio Rank: 52
FHEQ Martin Ratio Rank: 58

MSTB

MSTB Risk / Return Rank: 53
MSTB Sharpe Ratio Rank: 56
MSTB Sortino Ratio Rank: 54
MSTB Omega Ratio Rank: 57
MSTB Calmar Ratio Rank: 48
MSTB Martin Ratio Rank: 52

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.

FHEQ vs. MSTB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Fidelity Hedged Equity ETF (FHEQ) and LHA Market State Tactical Beta ETF (MSTB). 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.

	FHEQ	MSTB	Difference
Sharpe ratio: Return per unit of total volatility	1.95	1.78	+0.17
Sortino ratio: Return per unit of downside risk	2.70	2.42	+0.28
Omega ratio: Gain probability vs. loss probability	1.35	1.33	+0.02
Calmar ratio: Return relative to maximum drawdown	2.42	2.24	+0.18
Martin ratio: Return relative to average drawdown	9.77	8.49	+1.28
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FHEQ vs. MSTB - Sharpe Ratio Comparison

The current FHEQ Sharpe Ratio is 1.95, which is comparable to the MSTB Sharpe Ratio of 1.78. The chart below compares the historical Sharpe Ratios of FHEQ and MSTB, 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

	FHEQ	MSTB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.95	1.78	+0.17
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.58	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.38	0.80	+0.58

Drawdowns

FHEQ vs. MSTB - Drawdown Comparison

The maximum FHEQ drawdown since its inception was -11.12%, smaller than the maximum MSTB drawdown of -25.64%. Use the drawdown chart below to compare losses from any high point for FHEQ and MSTB.

Drawdown Indicators

	FHEQ	MSTB	Difference
Max Drawdown Largest peak-to-trough decline	-11.12%	-25.64%	+14.52%
Max Drawdown (1Y) Largest decline over 1 year	-7.77%	-8.31%	+0.54%
Max Drawdown (3Y) Largest decline over 3 years	—	-10.81%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-25.64%	—
Current Drawdown Current decline from peak	-2.61%	-2.57%	-0.04%
Average Drawdown Average peak-to-trough decline	-1.82%	-7.17%	+5.35%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.92%	2.19%	-0.27%

Volatility

FHEQ vs. MSTB - Volatility Comparison

Fidelity Hedged Equity ETF (FHEQ) and LHA Market State Tactical Beta ETF (MSTB) have volatilities of 3.26% and 3.25%, 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

	FHEQ	MSTB	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.26%	3.25%	+0.01%
Volatility (6M) Calculated over the trailing 6-month period	7.03%	7.80%	-0.77%
Volatility (1Y) Calculated over the trailing 1-year period	9.65%	10.47%	-0.82%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.48%	13.99%	-3.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.48%	13.86%	-3.38%

FHEQ vs. MSTB - Expense Ratio Comparison

FHEQ has a 0.48% expense ratio, which is lower than MSTB's 1.40% expense ratio.

Dividends

FHEQ vs. MSTB - Dividend Comparison

FHEQ's dividend yield for the trailing twelve months is around 0.60%, more than MSTB's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
FHEQ Fidelity Hedged Equity ETF	0.60%	0.63%	0.50%	0.00%	0.00%	0.00%	0.00%
MSTB LHA Market State Tactical Beta ETF	0.39%	0.41%	0.95%	0.16%	1.34%	2.20%	1.78%

Frequently Asked Questions

Can I hold both FHEQ and MSTB in my portfolio?

With a correlation of 0.91, FHEQ and MSTB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FHEQ or MSTB?

FHEQ has higher volatility (3.26%) compared to MSTB (3.25%). In terms of maximum drawdown, FHEQ dropped -11.12% vs MSTB's -25.64%.

Which ETF is better, FHEQ or MSTB?

On 1-year performance, FHEQ leads with 18.74% vs 18.56% for MSTB. On fees, FHEQ is cheaper at 0.48% 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, FHEQ or MSTB?

Over the 1-year period, FHEQ has performed better with a 18.74% return vs 18.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FHEQ or MSTB?

FHEQ is cheaper with a 0.48% expense ratio, compared with 1.40% for MSTB.

Which ETF pays a higher dividend yield, FHEQ or MSTB?

FHEQ has the higher dividend yield at 0.60%, compared with 0.39% for MSTB.

What is the main difference between FHEQ and MSTB?

They also come from different issuers: Fidelity and Little Harbor Advisors. Their fees differ too: 0.48% for FHEQ and 1.40% for MSTB.

Which has better risk-adjusted returns?

FHEQ currently has the higher Sharpe Ratio (1.95 vs 1.78), 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.