HDG vs. VOO
HDG (ProShares Hedge Replication) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - HDG is a Long-Short fund tracking the Merrill Lynch Factor Model - Exchange Series, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, HDG returned 4.21%/yr vs 15.77%/yr for VOO. A 0.73 correlation means they provide meaningful diversification when combined. HDG charges 0.95%/yr vs 0.03%/yr for VOO.
Performance
HDG vs. VOO - 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 VOO's 9.75% return. Over the past 10 years, HDG has underperformed VOO with an annualized return of 4.21%, while VOO has yielded a comparatively higher 15.77% annualized return.
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%
VOO
- 1D
- -0.29%
- 1M
- 0.08%
- YTD
- 9.75%
- 6M
- 9.30%
- 1Y
- 26.77%
- 3Y*
- 21.36%
- 5Y*
- 13.58%
- 10Y*
- 15.77%
HDG vs. VOO - 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% |
VOO Vanguard S&P 500 ETF | 9.75% | 17.82% | 24.98% | 26.32% | -18.17% | 28.79% | 18.32% | 31.37% | -4.50% | 21.77% |
Correlation
The correlation between HDG and VOO is 0.83, 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 | 0.83 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.76 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.73 |
Correlation (All Time) Calculated using the full available price history since Jul 14, 2011 | 0.73 |
The correlation between HDG and VOO shifts across timeframes, from 0.73 (all time) to 0.83 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
HDG vs. VOO — Risk / Return Rank
HDG
VOO
HDG vs. VOO - Risk-Adjusted Trends 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.
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 | VOO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.19 | ||
| Sortino ratioReturn per unit of downside risk | +0.51 | ||
| Omega ratioGain probability vs. loss probability | 1.47 | 1.39 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 3.68 | 3.02 | +0.66 |
| Martin ratioReturn relative to average drawdown | 14.92 | 13.58 | +1.33 |
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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.
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Drawdown Indicators
| HDG | VOO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -15.31% | -33.99% | +18.68% |
Max Drawdown (1Y)Largest decline over 1 year | -3.97% | -8.90% | +4.93% |
Max Drawdown (3Y)Largest decline over 3 years | -7.20% | -18.69% | +11.49% |
Max Drawdown (5Y)Largest decline over 5 years | -15.31% | -24.52% | +9.21% |
Max Drawdown (10Y)Largest decline over 10 years | -15.31% | -33.99% | +18.68% |
Current DrawdownCurrent decline from peak | -0.26% | -1.74% | +1.48% |
Average DrawdownAverage peak-to-trough decline | -2.76% | -3.68% | +0.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.98% | 1.98% | -1.00% |
Volatility
HDG vs. VOO - Volatility Comparison
The current volatility for ProShares Hedge Replication (HDG) is 2.85%, while Vanguard S&P 500 ETF (VOO) has a volatility of 4.60%. 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.
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Volatility by Period
| HDG | VOO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.85% | 4.60% | -1.75% |
Volatility (6M)Calculated over the trailing 6-month period | 5.24% | 9.73% | -4.49% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.18% | 12.39% | -6.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.23% | 16.90% | -9.67% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.14% | 18.05% | -10.91% |
HDG vs. VOO - Expense Ratio Comparison
HDG has a 0.95% expense ratio, which is higher than VOO's 0.03% expense ratio.
Dividends
HDG vs. VOO - Dividend Comparison
HDG's dividend yield for the trailing twelve months is around 2.33%, more than VOO's 1.04% 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% |
VOO Vanguard S&P 500 ETF | 1.04% | 1.13% | 1.24% | 1.46% | 1.69% | 1.25% | 1.54% | 1.88% | 2.06% | 1.78% | 2.02% | 2.10% |
Frequently Asked Questions
HDG and VOO have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VOO has higher volatility (4.60%) compared to HDG (2.85%). In terms of maximum drawdown, HDG dropped -15.31% vs VOO's -33.99%.
On 10-year performance, VOO leads with 15.77% vs 4.21% for HDG. On fees, VOO is cheaper at 0.03% per year. On volatility, HDG has been the lower-risk option at 2.85%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VOO has performed better with a 15.77% return vs 4.21%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VOO is cheaper with a 0.03% expense ratio, compared with 0.95% for HDG.
HDG has the higher dividend yield at 2.33%, compared with 1.04% for VOO.
HDG is categorized as Long-Short, while VOO is S&P 500. HDG tracks Merrill Lynch Factor Model - Exchange Series, while VOO tracks S&P 500 Index. They also come from different issuers: ProShares and Vanguard. Their fees differ too: 0.95% for HDG and 0.03% for VOO.
HDG currently has the higher Sharpe Ratio (2.37 vs 2.17), 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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