HEGD vs. MSTB

Last updated Jun 4, 2026

HEGD (Swan Hedged Equity US Large Cap ETF) and MSTB (LHA Market State Tactical Beta ETF) are both Equity Hedged funds - HEGD tracks the S&P 500 while MSTB tracks the S&P 500® Index. Both are passively managed. Over the past 5 years, HEGD returned 9.03%/yr vs 8.55%/yr for MSTB. Their correlation of 0.84 suggests significant overlap in exposure. HEGD charges 0.88%/yr vs 1.40%/yr for MSTB.

Performance

HEGD vs. MSTB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Swan Hedged Equity US Large Cap ETF (HEGD) and LHA Market State Tactical Beta ETF (MSTB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEGD achieves a 6.84% return, which is significantly lower than MSTB's 8.71% return.

HEGD

• 1D: -0.63%
• 1M: 3.52%
• YTD: 6.84%
• 6M: 6.23%
• 1Y: 17.89%
• 3Y*: 14.64%
• 5Y*: 9.03%
• 10Y*: —

MSTB

• 1D: -0.60%
• 1M: 3.88%
• YTD: 8.71%
• 6M: 8.70%
• 1Y: 20.33%
• 3Y*: 18.51%
• 5Y*: 8.55%
• 10Y*: —

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

HEGD vs. MSTB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
HEGD Swan Hedged Equity US Large Cap ETF	6.84%	12.95%	15.24%	14.16%	-11.25%	17.30%	0.99%
MSTB LHA Market State Tactical Beta ETF	8.71%	18.57%	18.82%	16.94%	-22.72%	21.89%	1.71%

Correlation

The correlation between HEGD and MSTB is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (All Time) Calculated using the full available price history since Dec 24, 2020	0.84

The correlation between HEGD and MSTB has been stable across timeframes, ranging from 0.84 to 0.89 - a consistent structural relationship.

HEGD vs. MSTB - Sectors Allocation Comparison

Sectors	HEGD	MSTB
Technology	36.1%	36.1%
Financial Services	11.8%	11.9%
Communication Services	11.0%	10.9%
Consumer Cyclical	10.1%	10.1%
Healthcare	8.4%	8.4%
Industrials	8.2%	8.2%
Consumer Defensive	4.9%	4.9%
Energy	3.5%	3.5%
Utilities	2.3%	2.3%
Real Estate	1.9%	1.9%
Basic Materials	1.8%	1.8%

Return for Risk

HEGD vs. MSTB — Risk / Return Rank

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

HEGD

HEGD Risk / Return Rank: 79
HEGD Sharpe Ratio Rank: 78
HEGD Sortino Ratio Rank: 81
HEGD Omega Ratio Rank: 78
HEGD Calmar Ratio Rank: 79
HEGD Martin Ratio Rank: 81

MSTB

MSTB Risk / Return Rank: 56
MSTB Sharpe Ratio Rank: 59
MSTB Sortino Ratio Rank: 58
MSTB Omega Ratio Rank: 60
MSTB Calmar Ratio Rank: 50
MSTB Martin Ratio Rank: 55

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.

HEGD vs. MSTB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Swan Hedged Equity US Large Cap ETF (HEGD) and LHA Market State Tactical Beta ETF (MSTB). 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.

	HEGD	MSTB	Difference
Sharpe ratio Return per unit of total volatility	2.59	2.00	+0.59
Sortino ratio Return per unit of downside risk	3.70	2.75	+0.95
Omega ratio Gain probability vs. loss probability	1.47	1.37	+0.11
Calmar ratio Return relative to maximum drawdown	4.10	2.46	+1.64
Martin ratio Return relative to average drawdown	16.25	9.32	+6.93
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HEGD vs. MSTB - Sharpe Ratio Comparison

The current HEGD Sharpe Ratio is 2.59, which is comparable to the MSTB Sharpe Ratio of 2.00. The chart below compares the historical Sharpe Ratios of HEGD and MSTB, 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

	HEGD	MSTB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.59	2.00	+0.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.97	0.62	+0.35
Sharpe Ratio (All Time) Calculated using the full available price history	1.06	0.83	+0.23

Drawdowns

HEGD vs. MSTB - Drawdown Comparison

The maximum HEGD drawdown since its inception was -14.56%, smaller than the maximum MSTB drawdown of -25.64%. Use the drawdown chart below to compare losses from any high point for HEGD and MSTB.

Drawdown Indicators

	HEGD	MSTB	Difference
Max Drawdown Largest peak-to-trough decline	-14.56%	-25.64%	+11.08%
Max Drawdown (1Y) Largest decline over 1 year	-4.39%	-8.31%	+3.92%
Max Drawdown (3Y) Largest decline over 3 years	-8.14%	-10.81%	+2.67%
Max Drawdown (5Y) Largest decline over 5 years	-14.56%	-25.64%	+11.08%
Current Drawdown Current decline from peak	-0.63%	-0.60%	-0.03%
Average Drawdown Average peak-to-trough decline	-3.66%	-7.18%	+3.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.10%	2.19%	-1.09%

Volatility

HEGD vs. MSTB - Volatility Comparison

The current volatility for Swan Hedged Equity US Large Cap ETF (HEGD) is 2.34%, while LHA Market State Tactical Beta ETF (MSTB) has a volatility of 2.56%. This indicates that HEGD experiences smaller price fluctuations and is considered to be less risky than MSTB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEGD	MSTB	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.34%	2.56%	-0.22%
Volatility (6M) Calculated over the trailing 6-month period	4.95%	7.43%	-2.48%
Volatility (1Y) Calculated over the trailing 1-year period	6.96%	10.21%	-3.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.40%	13.97%	-4.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.35%	13.84%	-4.49%

HEGD vs. MSTB - Expense Ratio Comparison

HEGD has a 0.88% expense ratio, which is lower than MSTB's 1.40% expense ratio.

Dividends

HEGD vs. MSTB - Dividend Comparison

HEGD's dividend yield for the trailing twelve months is around 0.34%, less than MSTB's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
HEGD Swan Hedged Equity US Large Cap ETF	0.34%	0.36%	0.43%	0.39%	0.87%	0.31%	0.00%
MSTB LHA Market State Tactical Beta ETF	0.38%	0.41%	0.95%	0.16%	1.34%	2.20%	1.78%

Frequently Asked Questions

Can I hold both HEGD and MSTB in my portfolio?

HEGD and MSTB have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEGD or MSTB?

MSTB has higher volatility (2.56%) compared to HEGD (2.34%). In terms of maximum drawdown, HEGD dropped -14.56% vs MSTB's -25.64%.

Which ETF is better, HEGD or MSTB?

On 5-year performance, HEGD leads with 9.03% vs 8.55% for MSTB. On fees, HEGD is cheaper at 0.88% per year. On volatility, HEGD has been the lower-risk option at 2.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEGD or MSTB?

Over the 5-year period, HEGD has performed better with a 9.03% return vs 8.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEGD or MSTB?

HEGD is cheaper with a 0.88% expense ratio, compared with 1.40% for MSTB.

Which ETF pays a higher dividend yield, HEGD or MSTB?

MSTB has the higher dividend yield at 0.38%, compared with 0.34% for HEGD.

What is the main difference between HEGD and MSTB?

HEGD tracks S&P 500, while MSTB tracks S&P 500® Index. They also come from different issuers: Swan and Little Harbor Advisors. Their fees differ too: 0.88% for HEGD and 1.40% for MSTB.

Which has better risk-adjusted returns?

HEGD currently has the higher Sharpe Ratio (2.59 vs 2.00), 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.