HDG vs. QAI
HDG (ProShares Hedge Replication) and QAI (IQ Hedge Multi-Strategy Tracker ETF) are both Long-Short funds - HDG tracks the Merrill Lynch Factor Model - Exchange Series while QAI tracks the IQ Hedge Multi-Strategy Index. Both are passively managed. Over the past 10 years, HDG returned 4.21%/yr vs 4.06%/yr for QAI. A 0.67 correlation means they provide meaningful diversification when combined. HDG charges 0.95%/yr vs 0.79%/yr for QAI.
Performance
HDG vs. QAI - Performance Comparison
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Returns By Period
In the year-to-date period, HDG achieves a 7.54% return, which is significantly lower than QAI's 9.76% return. Both investments have delivered pretty close results over the past 10 years, with HDG having a 4.21% annualized return and QAI not far behind at 4.06%.
HDG
- 1D
- 0.23%
- 1M
- 2.01%
- YTD
- 7.54%
- 6M
- 7.40%
- 1Y
- 14.55%
- 3Y*
- 7.99%
- 5Y*
- 3.26%
- 10Y*
- 4.21%
QAI
- 1D
- 0.14%
- 1M
- 1.83%
- YTD
- 9.76%
- 6M
- 9.54%
- 1Y
- 16.95%
- 3Y*
- 10.39%
- 5Y*
- 4.75%
- 10Y*
- 4.06%
HDG vs. QAI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HDG ProShares Hedge Replication | 7.54% | 7.18% | 5.12% | 7.14% | -8.48% | 2.97% | 7.45% | 9.58% | -4.52% | 5.59% |
QAI IQ Hedge Multi-Strategy Tracker ETF | 9.76% | 8.29% | 6.67% | 10.07% | -8.68% | -0.16% | 5.73% | 8.68% | -3.32% | 6.17% |
Correlation
The correlation between HDG and QAI is 0.87, 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 | 0.87 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.78 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.77 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.72 |
Correlation (All Time) Calculated using the full available price history since Jul 14, 2011 | 0.67 |
Over the past year, HDG and QAI have become more correlated (0.87) than their long-term average of 0.67, meaning their price movements have been converging.
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Return for Risk
HDG vs. QAI — Risk / Return Rank
HDG
QAI
HDG vs. QAI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares Hedge Replication (HDG) and IQ Hedge Multi-Strategy Tracker ETF (QAI). 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 | QAI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.27 | ||
| Sortino ratioReturn per unit of downside risk | -0.24 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.53 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 3.68 | 4.58 | -0.90 |
| Martin ratioReturn relative to average drawdown | 14.92 | 18.13 | -3.22 |
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Drawdowns
HDG vs. QAI - Drawdown Comparison
The maximum HDG drawdown since its inception was -15.31%, roughly equal to the maximum QAI drawdown of -14.95%. Use the drawdown chart below to compare losses from any high point for HDG and QAI.
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Drawdown Indicators
| HDG | QAI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.31% | -14.95% | -0.36% |
Max Drawdown (1Y)Largest decline over 1 year | -3.97% | -3.71% | -0.26% |
Max Drawdown (3Y)Largest decline over 3 years | -7.20% | -7.78% | +0.58% |
Max Drawdown (5Y)Largest decline over 5 years | -15.31% | -14.32% | -0.99% |
Max Drawdown (10Y)Largest decline over 10 years | -15.31% | -14.95% | -0.36% |
Current DrawdownCurrent decline from peak | -0.26% | 0.00% | -0.26% |
Average DrawdownAverage peak-to-trough decline | -2.76% | -2.57% | -0.19% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.98% | 0.94% | +0.04% |
Volatility
HDG vs. QAI - Volatility Comparison
ProShares Hedge Replication (HDG) and IQ Hedge Multi-Strategy Tracker ETF (QAI) have volatilities of 2.85% and 2.83%, 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.
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Volatility by Period
| HDG | QAI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.85% | 2.83% | +0.02% |
Volatility (6M)Calculated over the trailing 6-month period | 5.24% | 5.49% | -0.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.18% | 6.47% | -0.29% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.23% | 6.64% | +0.59% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.14% | 6.22% | +0.92% |
HDG vs. QAI - Expense Ratio Comparison
HDG has a 0.95% expense ratio, which is higher than QAI's 0.79% expense ratio.
Dividends
HDG vs. QAI - Dividend Comparison
HDG's dividend yield for the trailing twelve months is around 2.33%, more than QAI's 1.37% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HDG ProShares Hedge Replication | 2.33% | 2.55% | 3.50% | 3.48% | 0.39% | 0.00% | 0.08% | 1.09% | 0.51% | 0.00% | 0.00% | 0.00% |
QAI IQ Hedge Multi-Strategy Tracker ETF | 1.37% | 1.50% | 2.22% | 4.08% | 2.00% | 0.28% | 1.98% | 1.91% | 1.90% | 0.00% | 0.00% | 0.48% |
Frequently Asked Questions
HDG and QAI have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HDG has higher volatility (2.85%) compared to QAI (2.83%). In terms of maximum drawdown, HDG dropped -15.31% vs QAI's -14.95%.
On 10-year performance, HDG leads with 4.21% vs 4.06% for QAI. On fees, QAI is cheaper at 0.79% per year. Their volatility is very similar. 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 4.21% return vs 4.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
QAI is cheaper with a 0.79% expense ratio, compared with 0.95% for HDG.
HDG has the higher dividend yield at 2.33%, compared with 1.37% for QAI.
HDG tracks Merrill Lynch Factor Model - Exchange Series, while QAI tracks IQ Hedge Multi-Strategy Index. They also come from different issuers: ProShares and New York Life. Their fees differ too: 0.95% for HDG and 0.79% for QAI.
QAI currently has the higher Sharpe Ratio (2.64 vs 2.37), 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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