HDGE vs. IWM

Last updated Jun 4, 2026

HDGE (AdvisorShares Ranger Equity Bear ETF) and IWM (iShares Russell 2000 ETF) are both exchange-traded funds - HDGE is a Inverse Equities fund actively managed by AdvisorShares, while IWM is a Small Cap Blend Equities fund tracking the Russell 2000 Index. HDGE is actively managed, while IWM is passively managed. Over the past 10 years, HDGE returned -14.77%/yr vs 10.93%/yr for IWM. At a correlation of -0.86, they often move in opposite directions. HDGE charges 3.36%/yr vs 0.19%/yr for IWM.

Performance

HDGE vs. IWM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in AdvisorShares Ranger Equity Bear ETF (HDGE) and iShares Russell 2000 ETF (IWM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HDGE achieves a 5.43% return, which is significantly lower than IWM's 17.07% return. Over the past 10 years, HDGE has underperformed IWM with an annualized return of -14.77%, while IWM has yielded a comparatively higher 10.93% annualized return.

HDGE

• 1D: 2.55%
• 1M: -2.09%
• YTD: 5.43%
• 6M: 5.59%
• 1Y: -0.65%
• 3Y*: -5.06%
• 5Y*: -2.89%
• 10Y*: -14.77%

IWM

• 1D: -1.37%
• 1M: 3.52%
• YTD: 17.07%
• 6M: 15.83%
• 1Y: 39.10%
• 3Y*: 17.88%
• 5Y*: 6.11%
• 10Y*: 10.93%

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

HDGE vs. IWM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HDGE AdvisorShares Ranger Equity Bear ETF	5.43%	1.50%	-8.01%	-26.98%	16.59%	-18.61%	-43.47%	-36.27%	7.53%	-15.24%
IWM iShares Russell 2000 ETF	17.07%	12.66%	11.38%	16.83%	-20.48%	14.54%	20.03%	25.39%	-11.12%	14.58%

Correlation

The correlation between HDGE and IWM is -0.69, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.69
Correlation (3Y) Calculated over the trailing 3-year period	-0.81
Correlation (5Y) Calculated over the trailing 5-year period	-0.85
Correlation (10Y) Calculated over the trailing 10-year period	-0.85
Correlation (All Time) Calculated using the full available price history since Jan 28, 2011	-0.86

The correlation between HDGE and IWM shifts across timeframes, from -0.86 (all time) to -0.69 (1 year), reflecting how their relationship changes across market environments.

HDGE vs. IWM - Sectors Allocation Comparison

Sectors	HDGE	IWM
Utilities	-	3.0%
Basic Materials	-1.3%	4.5%
Energy	-2.5%	6.0%
Communication Services	-3.3%	2.0%
Healthcare	-3.5%	15.8%
Consumer Defensive	-4.9%	2.1%
Real Estate	-9.0%	5.7%
Industrials	-14.1%	17.1%
Consumer Cyclical	-18.6%	7.8%
Financial Services	-23.5%	15.8%
Technology	-26.1%	19.5%

Return for Risk

HDGE vs. IWM — Risk / Return Rank

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

HDGE

HDGE Risk / Return Rank: 8
HDGE Sharpe Ratio Rank: 8
HDGE Sortino Ratio Rank: 8
HDGE Omega Ratio Rank: 8
HDGE Calmar Ratio Rank: 8
HDGE Martin Ratio Rank: 8

IWM

IWM Risk / Return Rank: 62
IWM Sharpe Ratio Rank: 59
IWM Sortino Ratio Rank: 59
IWM Omega Ratio Rank: 53
IWM Calmar Ratio Rank: 70
IWM Martin Ratio Rank: 67

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.

HDGE vs. IWM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for AdvisorShares Ranger Equity Bear ETF (HDGE) and iShares Russell 2000 ETF (IWM). 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.

	HDGE	IWM	Difference
Sharpe ratio: Return per unit of total volatility	-0.04	2.05	-2.09
Sortino ratio: Return per unit of downside risk	0.08	2.85	-2.77
Omega ratio: Gain probability vs. loss probability	1.01	1.34	-0.33
Calmar ratio: Return relative to maximum drawdown	-0.05	3.56	-3.62
Martin ratio: Return relative to average drawdown	-0.11	12.64	-12.75
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HDGE vs. IWM - Sharpe Ratio Comparison

The current HDGE Sharpe Ratio is -0.04, which is lower than the IWM Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of HDGE and IWM, 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

	HDGE	IWM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.04	2.05	-2.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.12	0.27	-0.39
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.63	0.48	-1.10
Sharpe Ratio (All Time) Calculated using the full available price history	-0.67	0.37	-1.04

Drawdowns

HDGE vs. IWM - Drawdown Comparison

The maximum HDGE drawdown since its inception was -93.88%, which is greater than IWM's maximum drawdown of -59.05%. Use the drawdown chart below to compare losses from any high point for HDGE and IWM.

Drawdown Indicators

	HDGE	IWM	Difference
Max Drawdown Largest peak-to-trough decline	-93.88%	-59.05%	-34.83%
Max Drawdown (1Y) Largest decline over 1 year	-12.26%	-11.03%	-1.23%
Max Drawdown (3Y) Largest decline over 3 years	-29.46%	-27.50%	-1.96%
Max Drawdown (5Y) Largest decline over 5 years	-42.97%	-31.91%	-11.06%
Max Drawdown (10Y) Largest decline over 10 years	-83.69%	-41.13%	-42.56%
Current Drawdown Current decline from peak	-93.08%	-1.49%	-91.59%
Average Drawdown Average peak-to-trough decline	-70.11%	-10.77%	-59.34%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.16%	3.10%	+3.06%

Volatility

HDGE vs. IWM - Volatility Comparison

AdvisorShares Ranger Equity Bear ETF (HDGE) has a higher volatility of 6.41% compared to iShares Russell 2000 ETF (IWM) at 5.75%. This indicates that HDGE's price experiences larger fluctuations and is considered to be riskier than IWM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HDGE	IWM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.41%	5.75%	+0.66%
Volatility (6M) Calculated over the trailing 6-month period	12.81%	13.53%	-0.72%
Volatility (1Y) Calculated over the trailing 1-year period	18.33%	19.20%	-0.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.18%	22.52%	+1.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.56%	23.04%	+0.52%

HDGE vs. IWM - Expense Ratio Comparison

HDGE has a 3.36% expense ratio, which is higher than IWM's 0.19% expense ratio.

Dividends

HDGE vs. IWM - Dividend Comparison

HDGE's dividend yield for the trailing twelve months is around 3.32%, more than IWM's 0.88% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HDGE AdvisorShares Ranger Equity Bear ETF	3.32%	3.50%	7.83%	9.58%	0.00%	0.00%	0.00%	0.22%	0.00%	0.00%	0.00%	0.00%
IWM iShares Russell 2000 ETF	0.88%	1.04%	1.15%	1.35%	1.48%	0.94%	1.04%	1.26%	1.40%	1.26%	1.38%	1.54%

Frequently Asked Questions

Can I hold both HDGE and IWM in my portfolio?

HDGE and IWM have a correlation of -0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HDGE or IWM?

HDGE has higher volatility (6.41%) compared to IWM (5.75%). In terms of maximum drawdown, HDGE dropped -93.88% vs IWM's -59.05%.

Which ETF is better, HDGE or IWM?

On 10-year performance, IWM leads with 10.93% vs -14.77% for HDGE. On fees, IWM is cheaper at 0.19% per year. On volatility, IWM has been the lower-risk option at 5.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HDGE or IWM?

Over the 10-year period, IWM has performed better with a 10.93% return vs -14.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HDGE or IWM?

IWM is cheaper with a 0.19% expense ratio, compared with 3.36% for HDGE.

Which ETF pays a higher dividend yield, HDGE or IWM?

HDGE has the higher dividend yield at 3.32%, compared with 0.88% for IWM.

What is the main difference between HDGE and IWM?

HDGE is categorized as Inverse Equities, while IWM is Small Cap Blend Equities. They also come from different issuers: AdvisorShares and iShares. Their fees differ too: 3.36% for HDGE and 0.19% for IWM.

Which has better risk-adjusted returns?

IWM currently has the higher Sharpe Ratio (2.05 vs -0.04), 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.