HEGD vs. VNQ

Last updated Jun 4, 2026

HEGD (Swan Hedged Equity US Large Cap ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - HEGD is a Equity Hedged fund tracking the S&P 500, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. Both are passively managed. Over the past 5 years, HEGD returned 9.03%/yr vs 2.18%/yr for VNQ. A 0.54 correlation means they provide meaningful diversification when combined. HEGD charges 0.88%/yr vs 0.13%/yr for VNQ.

Performance

HEGD vs. VNQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Swan Hedged Equity US Large Cap ETF (HEGD) and Vanguard Real Estate ETF (VNQ). 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 VNQ's 7.83% return.

HEGD

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

VNQ

• 1D: -0.12%
• 1M: -1.10%
• YTD: 7.83%
• 6M: 6.75%
• 1Y: 9.97%
• 3Y*: 9.15%
• 5Y*: 2.18%
• 10Y*: 5.21%

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

HEGD vs. VNQ - 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%
VNQ Vanguard Real Estate ETF	7.83%	3.24%	4.81%	11.85%	-26.25%	40.54%	2.14%

Correlation

The correlation between HEGD and VNQ is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (5Y) Calculated over the trailing 5-year period	0.53
Correlation (All Time) Calculated using the full available price history since Dec 24, 2020	0.54

Over the past year, the correlation between HEGD and VNQ has dropped to 0.33 - well below their long-term average of 0.54, suggesting their price drivers have been diverging.

HEGD vs. VNQ - Sectors Allocation Comparison

Sectors	HEGD	VNQ
Technology	36.1%	0.3%
Financial Services	11.8%	0.1%
Communication Services	11.0%	0.6%
Consumer Cyclical	10.1%	-
Healthcare	8.4%	-
Industrials	8.2%	0.0%
Consumer Defensive	4.9%	-
Energy	3.5%	0.1%
Utilities	2.3%	-
Real Estate	1.9%	97.3%
Basic Materials	1.8%	1.1%

Return for Risk

HEGD vs. VNQ — 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

VNQ

VNQ Risk / Return Rank: 23
VNQ Sharpe Ratio Rank: 22
VNQ Sortino Ratio Rank: 21
VNQ Omega Ratio Rank: 20
VNQ Calmar Ratio Rank: 25
VNQ Martin Ratio Rank: 27

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. VNQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Swan Hedged Equity US Large Cap ETF (HEGD) and Vanguard Real Estate ETF (VNQ). 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	VNQ	Difference
Sharpe ratio: Return per unit of total volatility	2.59	0.76	+1.83
Sortino ratio: Return per unit of downside risk	3.70	1.12	+2.59
Omega ratio: Gain probability vs. loss probability	1.47	1.14	+0.33
Calmar ratio: Return relative to maximum drawdown	4.10	1.20	+2.89
Martin ratio: Return relative to average drawdown	16.25	3.78	+12.47
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. VNQ - Sharpe Ratio Comparison

The current HEGD Sharpe Ratio is 2.59, which is higher than the VNQ Sharpe Ratio of 0.76. The chart below compares the historical Sharpe Ratios of HEGD and VNQ, 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	VNQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.59	0.76	+1.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.97	0.12	+0.85
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.25	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.06	0.26	+0.80

Drawdowns

HEGD vs. VNQ - Drawdown Comparison

The maximum HEGD drawdown since its inception was -14.56%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for HEGD and VNQ.

Drawdown Indicators

	HEGD	VNQ	Difference
Max Drawdown Largest peak-to-trough decline	-14.56%	-73.07%	+58.51%
Max Drawdown (1Y) Largest decline over 1 year	-4.39%	-8.34%	+3.95%
Max Drawdown (3Y) Largest decline over 3 years	-8.14%	-17.46%	+9.32%
Max Drawdown (5Y) Largest decline over 5 years	-14.56%	-34.48%	+19.92%
Max Drawdown (10Y) Largest decline over 10 years	—	-42.40%	—
Current Drawdown Current decline from peak	-0.63%	-3.75%	+3.12%
Average Drawdown Average peak-to-trough decline	-3.66%	-13.63%	+9.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.10%	2.64%	-1.54%

Volatility

HEGD vs. VNQ - Volatility Comparison

The current volatility for Swan Hedged Equity US Large Cap ETF (HEGD) is 2.34%, while Vanguard Real Estate ETF (VNQ) has a volatility of 3.72%. This indicates that HEGD experiences smaller price fluctuations and is considered to be less risky than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEGD	VNQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.34%	3.72%	-1.38%
Volatility (6M) Calculated over the trailing 6-month period	4.95%	9.26%	-4.31%
Volatility (1Y) Calculated over the trailing 1-year period	6.96%	13.16%	-6.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.40%	18.80%	-9.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.35%	20.70%	-11.35%

HEGD vs. VNQ - Expense Ratio Comparison

HEGD has a 0.88% expense ratio, which is higher than VNQ's 0.13% expense ratio.

Dividends

HEGD vs. VNQ - Dividend Comparison

HEGD's dividend yield for the trailing twelve months is around 0.34%, less than VNQ's 3.69% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEGD Swan Hedged Equity US Large Cap ETF	0.34%	0.36%	0.43%	0.39%	0.87%	0.31%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VNQ Vanguard Real Estate ETF	3.69%	3.92%	3.85%	3.95%	3.91%	2.56%	3.93%	3.39%	4.74%	4.23%	4.82%	3.92%

Frequently Asked Questions

Can I hold both HEGD and VNQ in my portfolio?

HEGD and VNQ have a correlation of 0.33, 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 VNQ?

VNQ has higher volatility (3.72%) compared to HEGD (2.34%). In terms of maximum drawdown, HEGD dropped -14.56% vs VNQ's -73.07%.

Which ETF is better, HEGD or VNQ?

On 5-year performance, HEGD leads with 9.03% vs 2.18% for VNQ. On fees, VNQ is cheaper at 0.13% 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 VNQ?

Over the 5-year period, HEGD has performed better with a 9.03% return vs 2.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEGD or VNQ?

VNQ is cheaper with a 0.13% expense ratio, compared with 0.88% for HEGD.

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

VNQ has the higher dividend yield at 3.69%, compared with 0.34% for HEGD.

What is the main difference between HEGD and VNQ?

HEGD is categorized as Equity Hedged, while VNQ is REIT. HEGD tracks S&P 500, while VNQ tracks MSCI US Investable Market Real Estate 25/50 Index. They also come from different issuers: Swan and Vanguard. Their fees differ too: 0.88% for HEGD and 0.13% for VNQ.

Which has better risk-adjusted returns?

HEGD currently has the higher Sharpe Ratio (2.59 vs 0.76), 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.