HDG vs. VOO
Compare and contrast key facts about ProShares Hedge Replication (HDG) and Vanguard S&P 500 ETF (VOO).
HDG and VOO 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. VOO is a passively managed fund by Vanguard that tracks the performance of the S&P 500 Index. It was launched on Sep 7, 2010. Both HDG and VOO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: HDG or VOO.
Key characteristics
| HDG | VOO | |
|---|---|---|
| YTD Return | 1.48% | 7.68% |
| 1Y Return | 6.07% | 24.58% |
| 3Y Return (Ann) | -0.63% | 8.61% |
| 5Y Return (Ann) | 2.60% | 13.73% |
| 10Y Return (Ann) | 2.31% | 12.60% |
| Sharpe Ratio | 1.38 | 2.21 |
| Daily Std Dev | 4.62% | 11.60% |
| Max Drawdown | -15.31% | -33.99% |
| Current Drawdown | -3.09% | -2.60% |
Correlation
The correlation between HDG and VOO is 0.72, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
HDG vs. VOO - Performance Comparison
In the year-to-date period, HDG achieves a 1.48% return, which is significantly lower than VOO's 7.68% return. Over the past 10 years, HDG has underperformed VOO with an annualized return of 2.31%, while VOO has yielded a comparatively higher 12.60% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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HDG vs. VOO - Expense Ratio Comparison
HDG has a 0.95% expense ratio, which is higher than VOO's 0.03% expense ratio.
Risk-Adjusted Performance
HDG vs. VOO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for ProShares Hedge Replication (HDG) and Vanguard S&P 500 ETF (VOO). 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.
Dividends
HDG vs. VOO - Dividend Comparison
HDG's dividend yield for the trailing twelve months is around 3.67%, more than VOO's 1.37% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HDG ProShares Hedge Replication | 3.67% | 3.48% | 0.39% | 0.00% | 0.08% | 1.09% | 0.51% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VOO Vanguard S&P 500 ETF | 1.37% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% | 1.85% | 1.84% |
Drawdowns
HDG vs. VOO - Drawdown Comparison
The maximum HDG drawdown since its inception was -15.31%, smaller than the maximum VOO drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for HDG and VOO. For additional features, visit the drawdowns tool.
Volatility
HDG vs. VOO - Volatility Comparison
The current volatility for ProShares Hedge Replication (HDG) is 1.39%, while Vanguard S&P 500 ETF (VOO) has a volatility of 3.63%. This indicates that HDG experiences smaller price fluctuations and is considered to be less risky than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.