HDG vs. TQQQ
HDG (ProShares Hedge Replication) and TQQQ (ProShares UltraPro QQQ) are both exchange-traded funds - HDG is a Long-Short fund tracking the Merrill Lynch Factor Model - Exchange Series, while TQQQ is a Leveraged Equities fund tracking the NASDAQ-100 Index (300%). Both are passively managed. Over the past 10 years, HDG returned 3.85%/yr vs 41.62%/yr for TQQQ. A 0.64 correlation means they provide meaningful diversification when combined. Both charge a 0.95% expense ratio.
Performance
HDG vs. TQQQ - Performance Comparison
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Returns By Period
In the year-to-date period, HDG achieves a 6.42% return, which is significantly lower than TQQQ's 34.71% return. Over the past 10 years, HDG has underperformed TQQQ with an annualized return of 3.85%, while TQQQ has yielded a comparatively higher 41.62% annualized return.
HDG
- 1D
- -0.66%
- 1M
- -0.28%
- 6M
- 4.61%
- YTD
- 6.42%
- 1Y
- 11.62%
- 3Y*
- 7.10%
- 5Y*
- 3.33%
- 10Y*
- 3.85%
TQQQ
- 1D
- -4.97%
- 1M
- -11.29%
- 6M
- 30.60%
- YTD
- 34.71%
- 1Y
- 67.39%
- 3Y*
- 47.91%
- 5Y*
- 18.79%
- 10Y*
- 41.62%
HDG vs. TQQQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HDG ProShares Hedge Replication | 6.42% | 7.18% | 5.12% | 7.14% | -8.48% | 2.97% | 7.45% | 9.58% | -4.52% | 5.59% |
TQQQ ProShares UltraPro QQQ | 34.71% | 34.35% | 58.27% | 198.04% | -79.09% | 82.98% | 110.05% | 133.84% | -19.79% | 118.06% |
Correlation
The correlation between HDG and TQQQ is 0.79, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.79 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.66 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.64 |
Correlation (All Time) Calculated using the full available price history since Jul 14, 2011 | 0.64 |
The correlation between HDG and TQQQ shifts across timeframes, from 0.64 (10 years) to 0.79 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
HDG vs. TQQQ — Risk / Return Rank
HDG
TQQQ
HDG vs. TQQQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares Hedge Replication (HDG) and ProShares UltraPro QQQ (TQQQ). 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 | TQQQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.62 | ||
| Sortino ratioReturn per unit of downside risk | +0.94 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.22 | +0.13 |
| Calmar ratioReturn relative to maximum drawdown | 2.94 | 1.83 | +1.11 |
| Martin ratioReturn relative to average drawdown | 11.54 | 5.57 | +5.98 |
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Drawdowns
HDG vs. TQQQ - Drawdown Comparison
The maximum HDG drawdown since its inception was -15.31%, smaller than the maximum TQQQ drawdown of -81.66%. Use the drawdown chart below to compare losses from any high point for HDG and TQQQ.
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Drawdown Indicators
| HDG | TQQQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.31% | -81.66% | +66.35% |
Max Drawdown (1Y)Largest decline over 1 year | -3.97% | -36.97% | +33.00% |
Max Drawdown (3Y)Largest decline over 3 years | -7.20% | -58.04% | +50.84% |
Max Drawdown (5Y)Largest decline over 5 years | -15.31% | -81.66% | +66.35% |
Max Drawdown (10Y)Largest decline over 10 years | -15.31% | -81.66% | +66.35% |
Current DrawdownCurrent decline from peak | -1.29% | -18.71% | +17.42% |
Average DrawdownAverage peak-to-trough decline | -2.76% | -18.48% | +15.72% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.01% | 12.14% | -11.13% |
Volatility
HDG vs. TQQQ - Volatility Comparison
The current volatility for ProShares Hedge Replication (HDG) is 2.10%, while ProShares UltraPro QQQ (TQQQ) has a volatility of 22.28%. This indicates that HDG experiences smaller price fluctuations and is considered to be less risky than TQQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HDG | TQQQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.10% | 22.28% | -20.18% |
Volatility (6M)Calculated over the trailing 6-month period | 5.41% | 46.14% | -40.73% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.34% | 55.54% | -49.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.24% | 67.78% | -60.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.11% | 66.40% | -59.29% |
HDG vs. TQQQ - Expense Ratio Comparison
Both HDG and TQQQ have an expense ratio of 0.95%.
Dividends
HDG vs. TQQQ - Dividend Comparison
HDG's dividend yield for the trailing twelve months is around 2.38%, more than TQQQ's 0.53% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HDG ProShares Hedge Replication | 2.38% | 2.55% | 3.50% | 3.48% | 0.39% | 0.00% | 0.08% | 1.09% | 0.51% | 0.00% | 0.00% | 0.00% |
TQQQ ProShares UltraPro QQQ | 0.53% | 0.65% | 1.27% | 1.26% | 0.57% | 0.00% | 0.00% | 0.06% | 0.11% | 0.00% | 0.00% | 0.01% |
Frequently Asked Questions
HDG and TQQQ have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TQQQ has higher volatility (22.28%) compared to HDG (2.10%). In terms of maximum drawdown, HDG dropped -15.31% vs TQQQ's -81.66%.
On 10-year performance, TQQQ leads with 41.62% vs 3.85% for HDG. Both ETFs have the same 0.95% expense ratio. On volatility, HDG has been the lower-risk option at 2.10%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, TQQQ has performed better with a 41.62% return vs 3.85%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HDG and TQQQ have the same expense ratio: 0.95% per year.
HDG has the higher dividend yield at 2.38%, compared with 0.53% for TQQQ.
HDG is categorized as Long-Short, while TQQQ is Leveraged Equities. HDG tracks Merrill Lynch Factor Model - Exchange Series, while TQQQ tracks NASDAQ-100 Index (300%).
HDG currently has the higher Sharpe Ratio (1.84 vs 1.22), 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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