HEQT vs. PHEQ

Last updated Jun 26, 2026

HEQT (Simplify Hedged Equity ETF) and PHEQ (Parametric Hedged Equity ETF) are both exchange-traded funds - HEQT is a Equity Hedged fund actively managed by Simplify, while PHEQ is a Options Trading fund actively managed by Parametric. Both are actively managed. Over the past year, HEQT returned 12.05% vs 14.07% for PHEQ. A 0.72 correlation means they provide meaningful diversification when combined. HEQT charges 0.43%/yr vs 0.29%/yr for PHEQ.

Performance

HEQT vs. PHEQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Simplify Hedged Equity ETF (HEQT) and Parametric Hedged Equity ETF (PHEQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEQT achieves a 3.98% return, which is significantly lower than PHEQ's 5.37% return.

HEQT

• 1D: 0.12%
• 1M: -0.42%
• YTD: 3.98%
• 6M: 3.50%
• 1Y: 12.05%
• 3Y*: 13.00%
• 5Y*: —
• 10Y*: —

PHEQ

• 1D: 0.25%
• 1M: -0.26%
• YTD: 5.37%
• 6M: 4.79%
• 1Y: 14.07%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

HEQT vs. PHEQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
HEQT Simplify Hedged Equity ETF	3.98%	10.08%	18.30%	6.88%
PHEQ Parametric Hedged Equity ETF	5.37%	11.76%	14.94%	6.39%

Correlation

The correlation between HEQT and PHEQ is 0.78, 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	0.78
Correlation (All Time) Calculated using the full available price history since Oct 19, 2023	0.72

The correlation between HEQT and PHEQ has been stable across timeframes, ranging from 0.72 to 0.78 - a consistent structural relationship.

Return for Risk

HEQT vs. PHEQ — Risk / Return Rank

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

HEQT

HEQT Risk / Return Rank: 65
HEQT Sharpe Ratio Rank: 65
HEQT Sortino Ratio Rank: 65
HEQT Omega Ratio Rank: 72
HEQT Calmar Ratio Rank: 56
HEQT Martin Ratio Rank: 67

PHEQ

PHEQ Risk / Return Rank: 83
PHEQ Sharpe Ratio Rank: 83
PHEQ Sortino Ratio Rank: 87
PHEQ Omega Ratio Rank: 86
PHEQ Calmar Ratio Rank: 74
PHEQ Martin Ratio Rank: 84

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. PHEQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Simplify Hedged Equity ETF (HEQT) and Parametric Hedged Equity ETF (PHEQ). 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	PHEQ	Difference
Sharpe ratio: Return per unit of total volatility	1.83	2.31	-0.48
Sortino ratio: Return per unit of downside risk	2.58	3.46	-0.88
Omega ratio: Gain probability vs. loss probability	1.37	1.45	-0.08
Calmar ratio: Return relative to maximum drawdown	2.38	3.32	-0.94
Martin ratio: Return relative to average drawdown	10.69	14.99	-4.30

HEQT vs. PHEQ - Sharpe Ratio Comparison

The current HEQT Sharpe Ratio is 1.83, which is comparable to the PHEQ Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of HEQT and PHEQ, 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. PHEQ - Drawdown Comparison

The maximum HEQT drawdown since its inception was -11.51%, smaller than the maximum PHEQ drawdown of -12.55%. Use the drawdown chart below to compare losses from any high point for HEQT and PHEQ.

Drawdown Indicators

	HEQT	PHEQ	Difference
Max Drawdown Largest peak-to-trough decline	-11.51%	-12.55%	+1.04%
Max Drawdown (1Y) Largest decline over 1 year	-5.09%	-4.26%	-0.83%
Max Drawdown (3Y) Largest decline over 3 years	-10.57%	—	—
Current Drawdown Current decline from peak	-1.16%	-0.53%	-0.63%
Average Drawdown Average peak-to-trough decline	-2.76%	-0.97%	-1.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.13%	0.94%	+0.19%

Volatility

HEQT vs. PHEQ - Volatility Comparison

Simplify Hedged Equity ETF (HEQT) has a higher volatility of 2.05% compared to Parametric Hedged Equity ETF (PHEQ) at 1.72%. This indicates that HEQT's price experiences larger fluctuations and is considered to be riskier than PHEQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HEQT	PHEQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.05%	1.72%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	5.46%	4.78%	+0.68%
Volatility (1Y) Calculated over the trailing 1-year period	6.62%	6.11%	+0.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	8.47%	8.59%	-0.12%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.47%	8.59%	-0.12%

HEQT vs. PHEQ - Expense Ratio Comparison

HEQT has a 0.43% expense ratio, which is higher than PHEQ's 0.29% expense ratio.

Dividends

HEQT vs. PHEQ - Dividend Comparison

HEQT's dividend yield for the trailing twelve months is around 1.21%, more than PHEQ's 0.95% yield.

Position	TTM	2025	2024	2023	2022	2021
HEQT Simplify Hedged Equity ETF	1.21%	1.19%	1.29%	4.10%	3.94%	0.27%
PHEQ Parametric Hedged Equity ETF	0.95%	1.19%	1.39%	1.73%	0.00%	0.00%

Frequently Asked Questions

Can I hold both HEQT and PHEQ in my portfolio?

HEQT and PHEQ have a correlation of 0.78, 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 PHEQ?

HEQT has higher volatility (2.05%) compared to PHEQ (1.72%). In terms of maximum drawdown, HEQT dropped -11.51% vs PHEQ's -12.55%.

Which ETF is better, HEQT or PHEQ?

On 1-year performance, PHEQ leads with 14.07% vs 12.05% for HEQT. On fees, PHEQ is cheaper at 0.29% per year. On volatility, PHEQ has been the lower-risk option at 1.72%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEQT or PHEQ?

Over the 1-year period, PHEQ has performed better with a 14.07% return vs 12.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEQT or PHEQ?

PHEQ is cheaper with a 0.29% expense ratio, compared with 0.43% for HEQT.

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

HEQT has the higher dividend yield at 1.21%, compared with 0.95% for PHEQ.

What is the main difference between HEQT and PHEQ?

HEQT is categorized as Equity Hedged, while PHEQ is Options Trading. They also come from different issuers: Simplify and Parametric. Their fees differ too: 0.43% for HEQT and 0.29% for PHEQ.

Which has better risk-adjusted returns?

PHEQ currently has the higher Sharpe Ratio (2.31 vs 1.83), 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.