HDG vs. USMV

Last updated Apr 1, 2026

Compare and contrast key facts about ProShares Hedge Replication (HDG) and iShares MSCI USA Minimum Volatility Factor ETF (USMV).

HDG and USMV are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. HDG is a passively managed fund by ProShares that tracks the performance of the Merrill Lynch Factor Model - Exchange Series. It was launched on Jul 12, 2011. USMV is a passively managed fund by iShares that tracks the performance of the MSCI USA Minimum Volatility Index. It was launched on Oct 18, 2011. Both HDG and USMV are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

HDG vs. USMV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in ProShares Hedge Replication (HDG) and iShares MSCI USA Minimum Volatility Factor ETF (USMV). The values are adjusted to include any dividend payments, if applicable.

HDG vs. USMV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HDG ProShares Hedge Replication	0.49%	7.18%	5.12%	7.14%	-8.48%	2.97%	7.45%	9.58%	-4.52%	5.59%
USMV iShares MSCI USA Minimum Volatility Factor ETF	-1.10%	7.65%	15.74%	10.33%	-9.43%	20.85%	5.64%	27.69%	1.33%	18.91%

Returns By Period

In the year-to-date period, HDG achieves a 0.49% return, which is significantly higher than USMV's -1.10% return. Over the past 10 years, HDG has underperformed USMV with an annualized return of 3.41%, while USMV has yielded a comparatively higher 9.65% annualized return.

HDG

• 1D: 1.28%
• 1M: -1.94%
• YTD: 0.49%
• 6M: 2.17%
• 1Y: 8.41%
• 3Y*: 5.75%
• 5Y*: 1.97%
• 10Y*: 3.41%

USMV

• 1D: 1.15%
• 1M: -4.79%
• YTD: -1.10%
• 6M: -1.72%
• 1Y: 0.57%
• 3Y*: 10.28%
• 5Y*: 7.61%
• 10Y*: 9.65%

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

HDG vs. USMV - Expense Ratio Comparison

HDG has a 0.95% expense ratio, which is higher than USMV's 0.15% expense ratio.

HDG

ProShares Hedge Replication

USMV

iShares MSCI USA Minimum Volatility Factor ETF

Return for Risk

HDG vs. USMV — Risk / Return Rank

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

HDG

HDG Risk / Return Rank: 70
HDG Sharpe Ratio Rank: 71
HDG Sortino Ratio Rank: 71
HDG Omega Ratio Rank: 70
HDG Calmar Ratio Rank: 68
HDG Martin Ratio Rank: 70

USMV

USMV Risk / Return Rank: 15
USMV Sharpe Ratio Rank: 14
USMV Sortino Ratio Rank: 12
USMV Omega Ratio Rank: 13
USMV Calmar Ratio Rank: 17
USMV Martin Ratio Rank: 19

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. USMV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for ProShares Hedge Replication (HDG) and iShares MSCI USA Minimum Volatility Factor ETF (USMV). 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	USMV	Difference
Sharpe ratio Return per unit of total volatility	1.23	0.05	+1.18
Sortino ratio Return per unit of downside risk	1.77	0.15	+1.62
Omega ratio Gain probability vs. loss probability	1.26	1.02	+0.23
Calmar ratio Return relative to maximum drawdown	1.70	0.18	+1.52
Martin ratio Return relative to average drawdown	6.95	0.79	+6.16
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. USMV - Sharpe Ratio Comparison

The current HDG Sharpe Ratio is 1.23, which is higher than the USMV Sharpe Ratio of 0.05. The chart below compares the historical Sharpe Ratios of HDG and USMV, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	HDG	USMV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.23	0.05	+1.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.28	0.62	-0.34
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.48	0.67	-0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.38	0.85	-0.48

Correlation

The correlation between HDG and USMV is 0.60, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

HDG vs. USMV - Dividend Comparison

HDG's dividend yield for the trailing twelve months is around 2.49%, more than USMV's 1.58% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HDG ProShares Hedge Replication	2.49%	2.55%	3.50%	3.48%	0.39%	0.00%	0.08%	1.09%	0.51%	0.00%	0.00%	0.00%
USMV iShares MSCI USA Minimum Volatility Factor ETF	1.58%	1.49%	1.67%	1.82%	1.62%	1.26%	1.81%	1.88%	2.12%	1.77%	2.22%	2.02%

Drawdowns

HDG vs. USMV - Drawdown Comparison

The maximum HDG drawdown since its inception was -15.31%, smaller than the maximum USMV drawdown of -33.10%. Use the drawdown chart below to compare losses from any high point for HDG and USMV.

Drawdown Indicators

	HDG	USMV	Difference
Max Drawdown Largest peak-to-trough decline	-15.31%	-33.10%	+17.79%
Max Drawdown (1Y) Largest decline over 1 year	-4.85%	-8.91%	+4.06%
Max Drawdown (5Y) Largest decline over 5 years	-15.31%	-17.93%	+2.62%
Max Drawdown (10Y) Largest decline over 10 years	-15.31%	-33.10%	+17.79%
Current Drawdown Current decline from peak	-2.74%	-4.79%	+2.05%
Average Drawdown Average peak-to-trough decline	-2.80%	-2.88%	+0.08%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.19%	2.00%	-0.81%

Volatility

HDG vs. USMV - Volatility Comparison

The current volatility for ProShares Hedge Replication (HDG) is 2.61%, while iShares MSCI USA Minimum Volatility Factor ETF (USMV) has a volatility of 3.03%. This indicates that HDG experiences smaller price fluctuations and is considered to be less risky than USMV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HDG	USMV	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.61%	3.03%	-0.42%
Volatility (6M) Calculated over the trailing 6-month period	4.43%	6.08%	-1.65%
Volatility (1Y) Calculated over the trailing 1-year period	6.90%	12.54%	-5.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.15%	12.39%	-5.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.08%	14.51%	-7.43%