FTLS vs. HECA

Last updated Jun 21, 2026

FTLS (First Trust Long/Short Equity ETF) and HECA (Hedgeye Capital Allocation ETF) are both exchange-traded funds - FTLS is a Long-Short fund actively managed by First Trust, while HECA is a Global Allocation fund actively managed by Hedgeye. Both are actively managed. At a 0.39 correlation, their price movements are largely independent. FTLS charges 1.60%/yr vs 1.02%/yr for HECA.

Performance

FTLS vs. HECA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Long/Short Equity ETF (FTLS) and Hedgeye Capital Allocation ETF (HECA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTLS achieves a 5.04% return, which is significantly higher than HECA's -2.82% return.

FTLS

• 1D: 0.12%
• 1M: 0.11%
• YTD: 5.04%
• 6M: 4.94%
• 1Y: 15.97%
• 3Y*: 13.85%
• 5Y*: 10.43%
• 10Y*: 9.78%

HECA

• 1D: -0.04%
• 1M: -2.18%
• YTD: -2.82%
• 6M: -2.69%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

FTLS vs. HECA - Yearly Performance Comparison

	2026 (YTD)	2025
FTLS First Trust Long/Short Equity ETF	5.04%	7.70%
HECA Hedgeye Capital Allocation ETF	-2.82%	12.83%

Correlation

The correlation between FTLS and HECA is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 1, 2025	0.39

Return for Risk

FTLS vs. HECA — Risk / Return Rank

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

FTLS

FTLS Risk / Return Rank: 67
FTLS Sharpe Ratio Rank: 59
FTLS Sortino Ratio Rank: 61
FTLS Omega Ratio Rank: 59
FTLS Calmar Ratio Rank: 83
FTLS Martin Ratio Rank: 73

HECA

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

FTLS vs. HECA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Long/Short Equity ETF (FTLS) and Hedgeye Capital Allocation ETF (HECA). 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.

	FTLS	HECA	Difference
Sharpe ratio: Return per unit of total volatility	1.89	—	—
Sortino ratio: Return per unit of downside risk	2.73	—	—
Omega ratio: Gain probability vs. loss probability	1.34	—	—
Calmar ratio: Return relative to maximum drawdown	4.17	—	—
Martin ratio: Return relative to average drawdown	12.93	—	—

Drawdowns

FTLS vs. HECA - Drawdown Comparison

The maximum FTLS drawdown since its inception was -20.54%, which is greater than HECA's maximum drawdown of -12.82%. Use the drawdown chart below to compare losses from any high point for FTLS and HECA.

Drawdown Indicators

	FTLS	HECA	Difference
Max Drawdown Largest peak-to-trough decline	-20.54%	-12.82%	-7.72%
Max Drawdown (1Y) Largest decline over 1 year	-3.79%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-11.69%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-11.69%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-20.54%	—	—
Current Drawdown Current decline from peak	-0.50%	-12.82%	+12.32%
Average Drawdown Average peak-to-trough decline	-2.69%	-3.54%	+0.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.22%	—	—

Volatility

Volatility by Period

	FTLS	HECA	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.39%	—	—
Volatility (6M) Calculated over the trailing 6-month period	5.94%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	8.36%	12.62%	-4.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.57%	12.62%	-2.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.30%	12.62%	-1.32%

FTLS vs. HECA - Expense Ratio Comparison

FTLS has a 1.60% expense ratio, which is higher than HECA's 1.02% expense ratio.

Dividends

FTLS vs. HECA - Dividend Comparison

FTLS's dividend yield for the trailing twelve months is around 0.90%, less than HECA's 2.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTLS First Trust Long/Short Equity ETF	0.90%	1.07%	1.50%	1.49%	0.81%	0.01%	0.44%	0.83%	0.87%	0.43%	1.04%	0.49%
HECA Hedgeye Capital Allocation ETF	2.08%	2.02%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FTLS and HECA in my portfolio?

FTLS and HECA have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FTLS or HECA?

On fees, HECA is cheaper at 1.02% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FTLS or HECA?

HECA is cheaper with a 1.02% expense ratio, compared with 1.60% for FTLS.

Which ETF pays a higher dividend yield, FTLS or HECA?

HECA has the higher dividend yield at 2.08%, compared with 0.90% for FTLS.

What is the main difference between FTLS and HECA?

FTLS is categorized as Long-Short, while HECA is Global Allocation. They also come from different issuers: First Trust and Hedgeye. Their fees differ too: 1.60% for FTLS and 1.02% for HECA.