HDG vs. MRGR
HDG (ProShares Hedge Replication) and MRGR (Proshares Merger ETF) are both exchange-traded funds - HDG is a Long-Short fund tracking the Merrill Lynch Factor Model - Exchange Series, while MRGR is a Hedge Fund fund tracking the S&P Merger Arbitrage Index. Both are passively managed. Over the past 10 years, HDG returned 4.11%/yr vs 3.59%/yr for MRGR. At a 0.20 correlation, their price movements are largely independent. HDG charges 0.95%/yr vs 0.75%/yr for MRGR.
Performance
HDG vs. MRGR - Performance Comparison
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Returns By Period
In the year-to-date period, HDG achieves a 6.59% return, which is significantly higher than MRGR's 2.38% return. Over the past 10 years, HDG has outperformed MRGR with an annualized return of 4.11%, while MRGR has yielded a comparatively lower 3.59% annualized return.
HDG
- 1D
- -0.88%
- 1M
- 1.11%
- YTD
- 6.59%
- 6M
- 6.37%
- 1Y
- 13.31%
- 3Y*
- 7.67%
- 5Y*
- 2.93%
- 10Y*
- 4.11%
MRGR
- 1D
- 0.28%
- 1M
- 0.51%
- YTD
- 2.38%
- 6M
- 2.11%
- 1Y
- 11.18%
- 3Y*
- 8.71%
- 5Y*
- 4.15%
- 10Y*
- 3.59%
HDG vs. MRGR - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HDG ProShares Hedge Replication | 6.59% | 7.18% | 5.12% | 7.14% | -8.48% | 2.97% | 7.45% | 9.58% | -4.52% | 5.59% |
MRGR Proshares Merger ETF | 2.38% | 11.99% | 5.32% | 4.94% | -4.81% | 6.58% | 1.99% | 4.31% | 3.42% | 2.08% |
Correlation
The correlation between HDG and MRGR is 0.20, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.20 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.23 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.30 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.25 |
Correlation (All Time) Calculated using the full available price history since Dec 13, 2012 | 0.20 |
The correlation between HDG and MRGR shifts across timeframes, from 0.20 (1 year) to 0.30 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
HDG vs. MRGR — Risk / Return Rank
HDG
MRGR
HDG vs. MRGR - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares Hedge Replication (HDG) and Proshares Merger ETF (MRGR). 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 | MRGR | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.51 | ||
| Sortino ratioReturn per unit of downside risk | -1.40 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.53 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 3.37 | 8.67 | -5.31 |
| Martin ratioReturn relative to average drawdown | 13.61 | 23.70 | -10.09 |
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Drawdowns
HDG vs. MRGR - Drawdown Comparison
The maximum HDG drawdown since its inception was -15.31%, which is greater than MRGR's maximum drawdown of -13.23%. Use the drawdown chart below to compare losses from any high point for HDG and MRGR.
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Drawdown Indicators
| HDG | MRGR | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.31% | -13.23% | -2.08% |
Max Drawdown (1Y)Largest decline over 1 year | -3.97% | -1.29% | -2.68% |
Max Drawdown (3Y)Largest decline over 3 years | -7.20% | -2.10% | -5.10% |
Max Drawdown (5Y)Largest decline over 5 years | -15.31% | -8.40% | -6.91% |
Max Drawdown (10Y)Largest decline over 10 years | -15.31% | -13.23% | -2.08% |
Current DrawdownCurrent decline from peak | -1.13% | -0.05% | -1.08% |
Average DrawdownAverage peak-to-trough decline | -2.76% | -3.85% | +1.09% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.98% | 0.47% | +0.51% |
Volatility
HDG vs. MRGR - Volatility Comparison
ProShares Hedge Replication (HDG) has a higher volatility of 3.01% compared to Proshares Merger ETF (MRGR) at 1.27%. This indicates that HDG's price experiences larger fluctuations and is considered to be riskier than MRGR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HDG | MRGR | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.01% | 1.27% | +1.74% |
Volatility (6M)Calculated over the trailing 6-month period | 5.32% | 2.93% | +2.39% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.24% | 4.23% | +2.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.24% | 3.84% | +3.40% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.12% | 5.16% | +1.96% |
HDG vs. MRGR - Expense Ratio Comparison
HDG has a 0.95% expense ratio, which is higher than MRGR's 0.75% expense ratio.
Dividends
HDG vs. MRGR - Dividend Comparison
HDG's dividend yield for the trailing twelve months is around 2.35%, less than MRGR's 2.95% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HDG ProShares Hedge Replication | 2.35% | 2.55% | 3.50% | 3.48% | 0.39% | 0.00% | 0.08% | 1.09% | 0.51% | 0.00% | 0.00% | 0.00% |
MRGR Proshares Merger ETF | 2.95% | 3.12% | 3.21% | 2.11% | 0.61% | 0.59% | 0.00% | 0.78% | 1.39% | 0.36% | 0.74% | 0.34% |
Frequently Asked Questions
HDG and MRGR have a correlation of 0.20, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HDG has higher volatility (3.01%) compared to MRGR (1.27%). In terms of maximum drawdown, HDG dropped -15.31% vs MRGR's -13.23%.
On 10-year performance, HDG leads with 4.11% vs 3.59% for MRGR. On fees, MRGR is cheaper at 0.75% per year. On volatility, MRGR has been the lower-risk option at 1.27%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HDG has performed better with a 4.11% return vs 3.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MRGR is cheaper with a 0.75% expense ratio, compared with 0.95% for HDG.
MRGR has the higher dividend yield at 2.95%, compared with 2.35% for HDG.
HDG is categorized as Long-Short, while MRGR is Hedge Fund. HDG tracks Merrill Lynch Factor Model - Exchange Series, while MRGR tracks S&P Merger Arbitrage Index. Their fees differ too: 0.95% for HDG and 0.75% for MRGR.
MRGR currently has the higher Sharpe Ratio (2.65 vs 2.14), 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.
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