HDG vs. MKTN

Last updated Jun 25, 2026

HDG (ProShares Hedge Replication) and MKTN (Federated Hermes MDT Market Neutral ETF) are both Long-Short funds. HDG is passively managed, while MKTN is actively managed. At a correlation of -0.06, they often move in opposite directions.

Performance

HDG vs. MKTN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares Hedge Replication (HDG) and Federated Hermes MDT Market Neutral ETF (MKTN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HDG achieves a 6.05% return, which is significantly higher than MKTN's 0.57% return.

HDG

• 1D: -0.51%
• 1M: 0.60%
• YTD: 6.05%
• 6M: 5.81%
• 1Y: 12.20%
• 3Y*: 7.49%
• 5Y*: 2.84%
• 10Y*: 4.06%

MKTN

• 1D: 0.43%
• 1M: 0.32%
• YTD: 0.57%
• 6M: 0.65%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

HDG vs. MKTN - Yearly Performance Comparison

	2026 (YTD)	2025
HDG ProShares Hedge Replication	6.05%	1.80%
MKTN Federated Hermes MDT Market Neutral ETF	0.57%	3.22%

Correlation

The correlation between HDG and MKTN is -0.06, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (All Time) Calculated using the full available price history since Sep 25, 2025	-0.06

Return for Risk

HDG vs. MKTN — Risk / Return Rank

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

HDG

HDG Risk / Return Rank: 71
HDG Sharpe Ratio Rank: 69
HDG Sortino Ratio Rank: 71
HDG Omega Ratio Rank: 73
HDG Calmar Ratio Rank: 69
HDG Martin Ratio Rank: 74

MKTN

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.

HDG vs. MKTN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares Hedge Replication (HDG) and Federated Hermes MDT Market Neutral ETF (MKTN). 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.

	HDG	MKTN	Difference
Sharpe ratio: Return per unit of total volatility	1.96	—	—
Sortino ratio: Return per unit of downside risk	2.84	—	—
Omega ratio: Gain probability vs. loss probability	1.38	—	—
Calmar ratio: Return relative to maximum drawdown	3.09	—	—
Martin ratio: Return relative to average drawdown	12.41	—	—

Drawdowns

HDG vs. MKTN - Drawdown Comparison

The maximum HDG drawdown since its inception was -15.31%, which is greater than MKTN's maximum drawdown of -4.13%. Use the drawdown chart below to compare losses from any high point for HDG and MKTN.

Drawdown Indicators

	HDG	MKTN	Difference
Max Drawdown Largest peak-to-trough decline	-15.31%	-4.13%	-11.18%
Max Drawdown (1Y) Largest decline over 1 year	-3.97%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-7.20%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-15.31%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-15.31%	—	—
Current Drawdown Current decline from peak	-1.63%	-1.34%	-0.29%
Average Drawdown Average peak-to-trough decline	-2.76%	-1.20%	-1.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.99%	—	—

Volatility

Volatility by Period

	HDG	MKTN	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.06%	—	—
Volatility (6M) Calculated over the trailing 6-month period	5.34%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	6.26%	6.74%	-0.48%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.24%	6.74%	+0.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.12%	6.74%	+0.38%

Dividends

HDG vs. MKTN - Dividend Comparison

HDG's dividend yield for the trailing twelve months is around 2.36%, more than MKTN's 0.51% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HDG ProShares Hedge Replication	2.36%	2.55%	3.50%	3.48%	0.39%	0.00%	0.08%	1.09%	0.51%	0.00%	0.00%	0.00%
MKTN Federated Hermes MDT Market Neutral ETF	0.51%	0.51%	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 HDG and MKTN in my portfolio?

HDG and MKTN have a correlation of -0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF pays a higher dividend yield, HDG or MKTN?

HDG has the higher dividend yield at 2.36%, compared with 0.51% for MKTN.

What is the main difference between HDG and MKTN?

They also come from different issuers: ProShares and Federated Hermes.