HDG vs. USD

Last updated Jun 4, 2026

HDG (ProShares Hedge Replication) and USD (ProShares Ultra Semiconductors) are both exchange-traded funds - HDG is a Long-Short fund tracking the Merrill Lynch Factor Model - Exchange Series, while USD is a Leveraged Equities fund tracking the Dow Jones U.S. Semiconductors Index (200%). Both are passively managed. Over the past 10 years, HDG returned 3.91%/yr vs 62.16%/yr for USD. A 0.57 correlation means they provide meaningful diversification when combined. Both charge a 0.95% expense ratio.

Performance

HDG vs. USD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares Hedge Replication (HDG) and ProShares Ultra Semiconductors (USD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HDG achieves a 6.40% return, which is significantly lower than USD's 114.00% return. Over the past 10 years, HDG has underperformed USD with an annualized return of 3.91%, while USD has yielded a comparatively higher 62.16% annualized return.

HDG

• 1D: -0.37%
• 1M: 2.07%
• YTD: 6.40%
• 6M: 7.00%
• 1Y: 13.22%
• 3Y*: 7.56%
• 5Y*: 3.02%
• 10Y*: 3.91%

USD

• 1D: -1.14%
• 1M: 44.53%
• YTD: 114.00%
• 6M: 111.06%
• 1Y: 274.62%
• 3Y*: 127.67%
• 5Y*: 69.52%
• 10Y*: 62.16%

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

HDG vs. USD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HDG ProShares Hedge Replication	6.40%	7.18%	5.12%	7.14%	-8.48%	2.97%	7.45%	9.58%	-4.52%	5.59%
USD ProShares Ultra Semiconductors	114.00%	62.08%	139.64%	228.79%	-68.57%	104.27%	68.16%	110.37%	-26.88%	81.72%

Correlation

The correlation between HDG and USD is 0.58, 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	0.58
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (5Y) Calculated over the trailing 5-year period	0.59
Correlation (10Y) Calculated over the trailing 10-year period	0.57
Correlation (All Time) Calculated using the full available price history since Jul 15, 2011	0.57

The correlation between HDG and USD has been stable across timeframes, ranging from 0.51 to 0.59 - a consistent structural relationship.

HDG vs. USD - Sectors Allocation Comparison

Sectors	HDG	USD
Industrials	17.7%	-
Technology	17.0%	27.4%
Healthcare	16.5%	-
Financial Services	15.8%	27.8%
Consumer Cyclical	8.4%	-
Real Estate	6.1%	-
Energy	6.1%	0.0%
Basic Materials	4.8%	-
Utilities	2.9%	-
Communication Services	2.4%	-
Consumer Defensive	2.4%	-

Return for Risk

HDG vs. USD — Risk / Return Rank

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

HDG

HDG Risk / Return Rank: 73
HDG Sharpe Ratio Rank: 72
HDG Sortino Ratio Rank: 77
HDG Omega Ratio Rank: 76
HDG Calmar Ratio Rank: 67
HDG Martin Ratio Rank: 73

USD

USD Risk / Return Rank: 90
USD Sharpe Ratio Rank: 97
USD Sortino Ratio Rank: 83
USD Omega Ratio Rank: 83
USD Calmar Ratio Rank: 95
USD Martin Ratio Rank: 93

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. USD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares Hedge Replication (HDG) and ProShares Ultra Semiconductors (USD). 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.

	HDG	USD	Difference
Sharpe ratio: Return per unit of total volatility	2.36	4.53	-2.18
Sortino ratio: Return per unit of downside risk	3.50	3.81	-0.31
Omega ratio: Gain probability vs. loss probability	1.46	1.51	-0.05
Calmar ratio: Return relative to maximum drawdown	3.35	8.70	-5.35
Martin ratio: Return relative to average drawdown	13.81	25.16	-11.35
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HDG vs. USD - Sharpe Ratio Comparison

The current HDG Sharpe Ratio is 2.36, which is lower than the USD Sharpe Ratio of 4.53. The chart below compares the historical Sharpe Ratios of HDG and USD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HDG	USD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.36	4.53	-2.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.91	-0.49
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.90	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.43	0.49	-0.06

Drawdowns

HDG vs. USD - Drawdown Comparison

The maximum HDG drawdown since its inception was -15.31%, smaller than the maximum USD drawdown of -88.63%. Use the drawdown chart below to compare losses from any high point for HDG and USD.

Drawdown Indicators

	HDG	USD	Difference
Max Drawdown Largest peak-to-trough decline	-15.31%	-88.63%	+73.32%
Max Drawdown (1Y) Largest decline over 1 year	-3.97%	-31.80%	+27.83%
Max Drawdown (3Y) Largest decline over 3 years	-7.20%	-64.46%	+57.26%
Max Drawdown (5Y) Largest decline over 5 years	-15.31%	-77.85%	+62.54%
Max Drawdown (10Y) Largest decline over 10 years	-15.31%	-77.85%	+62.54%
Current Drawdown Current decline from peak	-0.37%	-1.14%	+0.77%
Average Drawdown Average peak-to-trough decline	-2.77%	-32.35%	+29.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.96%	10.97%	-10.01%

Volatility

HDG vs. USD - Volatility Comparison

The current volatility for ProShares Hedge Replication (HDG) is 2.06%, while ProShares Ultra Semiconductors (USD) has a volatility of 20.36%. This indicates that HDG experiences smaller price fluctuations and is considered to be less risky than USD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HDG	USD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.06%	20.36%	-18.30%
Volatility (6M) Calculated over the trailing 6-month period	4.58%	46.39%	-41.81%
Volatility (1Y) Calculated over the trailing 1-year period	5.64%	61.22%	-55.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.15%	76.55%	-69.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.11%	69.23%	-62.12%

HDG vs. USD - Expense Ratio Comparison

Both HDG and USD have an expense ratio of 0.95%.

Dividends

HDG vs. USD - Dividend Comparison

HDG's dividend yield for the trailing twelve months is around 2.35%, more than USD's 0.21% 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%
USD ProShares Ultra Semiconductors	0.21%	0.39%	0.10%	0.05%	0.30%	0.00%	0.14%	0.72%	0.93%	0.32%	0.46%	0.39%

Frequently Asked Questions

Can I hold both HDG and USD in my portfolio?

HDG and USD have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HDG or USD?

USD has higher volatility (20.36%) compared to HDG (2.06%). In terms of maximum drawdown, HDG dropped -15.31% vs USD's -88.63%.

Which ETF is better, HDG or USD?

On 10-year performance, USD leads with 62.16% vs 3.91% for HDG. Both ETFs have the same 0.95% expense ratio. On volatility, HDG has been the lower-risk option at 2.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HDG or USD?

Over the 10-year period, USD has performed better with a 62.16% return vs 3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HDG or USD?

HDG and USD have the same expense ratio: 0.95% per year.

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

HDG has the higher dividend yield at 2.35%, compared with 0.21% for USD.

What is the main difference between HDG and USD?

HDG is categorized as Long-Short, while USD is Leveraged Equities. HDG tracks Merrill Lynch Factor Model - Exchange Series, while USD tracks Dow Jones U.S. Semiconductors Index (200%).

Which has better risk-adjusted returns?

USD currently has the higher Sharpe Ratio (4.53 vs 2.36), 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.