HEQT vs. PHDG

Last updated Jun 23, 2026

HEQT (Simplify Hedged Equity ETF) and PHDG (Invesco S&P 500 Downside Hedged ETF) are both Equity Hedged funds. HEQT is actively managed, while PHDG is passively managed. Over the past 3 years, HEQT returned 13.21%/yr vs 9.78%/yr for PHDG. A 0.60 correlation means they provide meaningful diversification when combined. HEQT charges 0.43%/yr vs 0.39%/yr for PHDG.

Performance

HEQT vs. PHDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Simplify Hedged Equity ETF (HEQT) and Invesco S&P 500 Downside Hedged ETF (PHDG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEQT achieves a 4.76% return, which is significantly lower than PHDG's 10.56% return.

HEQT

• 1D: -0.21%
• 1M: 0.57%
• YTD: 4.76%
• 6M: 4.67%
• 1Y: 14.00%
• 3Y*: 13.21%
• 5Y*: —
• 10Y*: —

PHDG

• 1D: -0.33%
• 1M: -1.88%
• YTD: 10.56%
• 6M: 10.62%
• 1Y: 21.44%
• 3Y*: 9.78%
• 5Y*: 4.89%
• 10Y*: 7.12%

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

HEQT vs. PHDG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
HEQT Simplify Hedged Equity ETF	4.76%	10.08%	18.30%	16.61%	-8.25%	2.11%
PHDG Invesco S&P 500 Downside Hedged ETF	10.56%	2.72%	10.95%	8.18%	-14.09%	3.31%

Correlation

The correlation between HEQT and PHDG is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.56
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (All Time) Calculated using the full available price history since Nov 2, 2021	0.60

The correlation between HEQT and PHDG has been stable across timeframes, ranging from 0.55 to 0.60 - a consistent structural relationship.

Return for Risk

HEQT vs. PHDG — Risk / Return Rank

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

HEQT

HEQT Risk / Return Rank: 68
HEQT Sharpe Ratio Rank: 68
HEQT Sortino Ratio Rank: 69
HEQT Omega Ratio Rank: 77
HEQT Calmar Ratio Rank: 57
HEQT Martin Ratio Rank: 70

PHDG

PHDG Risk / Return Rank: 70
PHDG Sharpe Ratio Rank: 58
PHDG Sortino Ratio Rank: 57
PHDG Omega Ratio Rank: 68
PHDG Calmar Ratio Rank: 79
PHDG Martin Ratio Rank: 86

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.

HEQT vs. PHDG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Simplify Hedged Equity ETF (HEQT) and Invesco S&P 500 Downside Hedged ETF (PHDG). 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.

	HEQT	PHDG	Difference
Sharpe ratio: Return per unit of total volatility	2.13	1.90	+0.23
Sortino ratio: Return per unit of downside risk	3.00	2.62	+0.38
Omega ratio: Gain probability vs. loss probability	1.43	1.39	+0.04
Calmar ratio: Return relative to maximum drawdown	2.76	3.93	-1.17
Martin ratio: Return relative to average drawdown	12.50	17.30	-4.80

HEQT vs. PHDG - Sharpe Ratio Comparison

The current HEQT Sharpe Ratio is 2.13, which is comparable to the PHDG Sharpe Ratio of 1.90. The chart below compares the historical Sharpe Ratios of HEQT and PHDG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

HEQT vs. PHDG - Drawdown Comparison

The maximum HEQT drawdown since its inception was -11.51%, smaller than the maximum PHDG drawdown of -17.70%. Use the drawdown chart below to compare losses from any high point for HEQT and PHDG.

Drawdown Indicators

	HEQT	PHDG	Difference
Max Drawdown Largest peak-to-trough decline	-11.51%	-17.70%	+6.19%
Max Drawdown (1Y) Largest decline over 1 year	-5.09%	-5.48%	+0.39%
Max Drawdown (3Y) Largest decline over 3 years	-10.57%	-14.78%	+4.21%
Max Drawdown (5Y) Largest decline over 5 years	—	-17.06%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-17.06%	—
Current Drawdown Current decline from peak	-0.42%	-5.01%	+4.59%
Average Drawdown Average peak-to-trough decline	-2.77%	-6.23%	+3.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.12%	1.24%	-0.12%

Volatility

HEQT vs. PHDG - Volatility Comparison

The current volatility for Simplify Hedged Equity ETF (HEQT) is 1.92%, while Invesco S&P 500 Downside Hedged ETF (PHDG) has a volatility of 7.74%. This indicates that HEQT experiences smaller price fluctuations and is considered to be less risky than PHDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEQT	PHDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.92%	7.74%	-5.82%
Volatility (6M) Calculated over the trailing 6-month period	5.47%	9.73%	-4.26%
Volatility (1Y) Calculated over the trailing 1-year period	6.61%	11.39%	-4.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.47%	11.40%	-2.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.47%	12.15%	-3.68%

HEQT vs. PHDG - Expense Ratio Comparison

HEQT has a 0.43% expense ratio, which is higher than PHDG's 0.39% expense ratio.

Dividends

HEQT vs. PHDG - Dividend Comparison

HEQT's dividend yield for the trailing twelve months is around 1.20%, less than PHDG's 2.28% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HEQT Simplify Hedged Equity ETF	1.20%	1.19%	1.29%	4.10%	3.94%	0.27%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PHDG Invesco S&P 500 Downside Hedged ETF	2.28%	2.10%	1.94%	1.93%	1.35%	0.44%	0.63%	1.80%	1.56%	1.83%	2.29%	1.64%

Frequently Asked Questions

Can I hold both HEQT and PHDG in my portfolio?

HEQT and PHDG have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEQT or PHDG?

PHDG has higher volatility (7.74%) compared to HEQT (1.92%). In terms of maximum drawdown, HEQT dropped -11.51% vs PHDG's -17.70%.

Which ETF is better, HEQT or PHDG?

On 3-year performance, HEQT leads with 13.21% vs 9.78% for PHDG. On fees, PHDG is cheaper at 0.39% per year. On volatility, HEQT has been the lower-risk option at 1.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEQT or PHDG?

Over the 3-year period, HEQT has performed better with a 13.21% return vs 9.78%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEQT or PHDG?

PHDG is cheaper with a 0.39% expense ratio, compared with 0.43% for HEQT.

Which ETF pays a higher dividend yield, HEQT or PHDG?

PHDG has the higher dividend yield at 2.28%, compared with 1.20% for HEQT.

What is the main difference between HEQT and PHDG?

They also come from different issuers: Simplify and Invesco. Their fees differ too: 0.43% for HEQT and 0.39% for PHDG.

Which has better risk-adjusted returns?

HEQT currently has the higher Sharpe Ratio (2.13 vs 1.90), 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.