FSEP vs. HEQT

Last updated Jun 24, 2026

FSEP (FT Cboe Vest U.S. Equity Buffer ETF - September) and HEQT (Simplify Hedged Equity ETF) are both exchange-traded funds - FSEP is a Options Trading fund tracking the Cboe S&P 500 Buffer Protect Index September, while HEQT is a Equity Hedged fund actively managed by Simplify. FSEP is passively managed, while HEQT is actively managed. Over the past 3 years, FSEP returned 13.62%/yr vs 12.95%/yr for HEQT. Their correlation of 0.90 suggests significant overlap in exposure. FSEP charges 0.85%/yr vs 0.43%/yr for HEQT.

Performance

FSEP vs. HEQT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FT Cboe Vest U.S. Equity Buffer ETF - September (FSEP) 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, FSEP achieves a 5.82% return, which is significantly higher than HEQT's 4.02% return.

FSEP

• 1D: -0.80%
• 1M: -0.07%
• YTD: 5.82%
• 6M: 5.41%
• 1Y: 15.95%
• 3Y*: 13.62%
• 5Y*: 9.80%
• 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)

FSEP vs. HEQT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FSEP FT Cboe Vest U.S. Equity Buffer ETF - September	5.82%	12.83%	13.56%	20.23%	-7.05%	1.64%
HEQT Simplify Hedged Equity ETF	4.02%	10.08%	18.30%	16.61%	-8.25%	2.11%

Correlation

The correlation between FSEP and HEQT is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (All Time) Calculated using the full available price history since Nov 2, 2021	0.90

The correlation between FSEP and HEQT has been stable across timeframes, ranging from 0.87 to 0.90 - a consistent structural relationship.

Return for Risk

FSEP vs. HEQT — Risk / Return Rank

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

FSEP

FSEP Risk / Return Rank: 71
FSEP Sharpe Ratio Rank: 70
FSEP Sortino Ratio Rank: 72
FSEP Omega Ratio Rank: 75
FSEP Calmar Ratio Rank: 62
FSEP Martin Ratio Rank: 78

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.

FSEP vs. HEQT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FT Cboe Vest U.S. Equity Buffer ETF - September (FSEP) 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.

	FSEP	HEQT	Difference
Sharpe ratio: Return per unit of total volatility	2.11	1.97	+0.14
Sortino ratio: Return per unit of downside risk	3.02	2.77	+0.25
Omega ratio: Gain probability vs. loss probability	1.41	1.40	+0.02
Calmar ratio: Return relative to maximum drawdown	2.85	2.56	+0.29
Martin ratio: Return relative to average drawdown	14.23	11.59	+2.64

FSEP vs. HEQT - Sharpe Ratio Comparison

The current FSEP Sharpe Ratio is 2.11, which is comparable to the HEQT Sharpe Ratio of 1.97. The chart below compares the historical Sharpe Ratios of FSEP 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

FSEP vs. HEQT - Drawdown Comparison

The maximum FSEP drawdown since its inception was -13.79%, which is greater than HEQT's maximum drawdown of -11.51%. Use the drawdown chart below to compare losses from any high point for FSEP and HEQT.

Drawdown Indicators

	FSEP	HEQT	Difference
Max Drawdown Largest peak-to-trough decline	-13.79%	-11.51%	-2.28%
Max Drawdown (1Y) Largest decline over 1 year	-5.62%	-5.09%	-0.53%
Max Drawdown (3Y) Largest decline over 3 years	-12.37%	-10.57%	-1.80%
Max Drawdown (5Y) Largest decline over 5 years	-13.79%	—	—
Current Drawdown Current decline from peak	-0.96%	-1.12%	+0.16%
Average Drawdown Average peak-to-trough decline	-2.12%	-2.77%	+0.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.12%	1.12%	0.00%

Volatility

FSEP vs. HEQT - Volatility Comparison

FT Cboe Vest U.S. Equity Buffer ETF - September (FSEP) has a higher volatility of 2.20% compared to Simplify Hedged Equity ETF (HEQT) at 2.06%. This indicates that FSEP's price experiences larger fluctuations and is considered to be riskier than HEQT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FSEP	HEQT	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.20%	2.06%	+0.14%
Volatility (6M) Calculated over the trailing 6-month period	6.05%	5.49%	+0.56%
Volatility (1Y) Calculated over the trailing 1-year period	7.62%	6.64%	+0.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.83%	8.47%	+2.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.53%	8.47%	+2.06%

FSEP vs. HEQT - Expense Ratio Comparison

FSEP has a 0.85% expense ratio, which is higher than HEQT's 0.43% expense ratio.

Dividends

FSEP vs. HEQT - Dividend Comparison

FSEP 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
FSEP FT Cboe Vest U.S. Equity Buffer ETF - September	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
HEQT Simplify Hedged Equity ETF	1.20%	1.19%	1.29%	4.10%	3.94%	0.27%

Frequently Asked Questions

Can I hold both FSEP and HEQT in my portfolio?

With a correlation of 0.90, FSEP and HEQT 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, FSEP or HEQT?

FSEP has higher volatility (2.20%) compared to HEQT (2.06%). In terms of maximum drawdown, FSEP dropped -13.79% vs HEQT's -11.51%.

Which ETF is better, FSEP or HEQT?

On 3-year performance, FSEP leads with 13.62% vs 12.95% for HEQT. On fees, HEQT is cheaper at 0.43% per year. On volatility, HEQT has been the lower-risk option at 2.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FSEP or HEQT?

Over the 3-year period, FSEP has performed better with a 13.62% return vs 12.95%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FSEP or HEQT?

HEQT is cheaper with a 0.43% expense ratio, compared with 0.85% for FSEP.

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

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

What is the main difference between FSEP and HEQT?

FSEP is categorized as Options Trading, while HEQT is Equity Hedged. They also come from different issuers: FT Vest and Simplify. Their fees differ too: 0.85% for FSEP and 0.43% for HEQT.

Which has better risk-adjusted returns?

FSEP currently has the higher Sharpe Ratio (2.11 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.