HFEQ vs. KMLM

Last updated Jun 4, 2026

HFEQ (Unlimited HFEQ Equity Long/Short ETF) and KMLM (KFA Mount Lucas Index Strategy ETF) are both Long-Short funds. Both are actively managed. At a 0.03 correlation, their price movements are largely independent. HFEQ charges 1.00%/yr vs 0.90%/yr for KMLM.

Performance

HFEQ vs. KMLM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Unlimited HFEQ Equity Long/Short ETF (HFEQ) and KFA Mount Lucas Index Strategy ETF (KMLM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HFEQ achieves a 14.04% return, which is significantly higher than KMLM's 10.79% return.

HFEQ

• 1D: -0.34%
• 1M: 5.50%
• YTD: 14.04%
• 6M: 13.73%
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

KMLM

• 1D: 0.17%
• 1M: -2.41%
• YTD: 10.79%
• 6M: 13.19%
• 1Y: 13.68%
• 3Y*: -0.47%
• 5Y*: 4.33%
• 10Y*: —

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

HFEQ vs. KMLM - Yearly Performance Comparison

	2026 (YTD)	2025
HFEQ Unlimited HFEQ Equity Long/Short ETF	14.04%	14.92%
KMLM KFA Mount Lucas Index Strategy ETF	10.79%	1.73%

Correlation

The correlation between HFEQ and KMLM is 0.03, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jul 16, 2025	0.03

Return for Risk

HFEQ vs. KMLM — Risk / Return Rank

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

KMLM

KMLM Risk / Return Rank: 36
KMLM Sharpe Ratio Rank: 33
KMLM Sortino Ratio Rank: 31
KMLM Omega Ratio Rank: 32
KMLM Calmar Ratio Rank: 43
KMLM Martin Ratio Rank: 43

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.

HFEQ vs. KMLM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Unlimited HFEQ Equity Long/Short ETF (HFEQ) and KFA Mount Lucas Index Strategy ETF (KMLM). 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	HFEQ	KMLM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	1.20	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.30	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.66	0.49	+1.16

Drawdowns

HFEQ vs. KMLM - Drawdown Comparison

The maximum HFEQ drawdown since its inception was -12.46%, smaller than the maximum KMLM drawdown of -27.47%. Use the drawdown chart below to compare losses from any high point for HFEQ and KMLM.

Drawdown Indicators

	HFEQ	KMLM	Difference
Max Drawdown Largest peak-to-trough decline	-12.46%	-27.47%	+15.01%
Max Drawdown (1Y) Largest decline over 1 year	—	-6.30%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-22.28%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-27.47%	—
Current Drawdown Current decline from peak	-0.34%	-13.61%	+13.27%
Average Drawdown Average peak-to-trough decline	-2.45%	-12.74%	+10.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.91%	—

Volatility

Volatility by Period

	HFEQ	KMLM	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	4.46%	—
Volatility (6M) Calculated over the trailing 6-month period	—	9.63%	—
Volatility (1Y) Calculated over the trailing 1-year period	21.60%	11.43%	+10.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.60%	14.62%	+6.98%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.60%	14.73%	+6.87%

HFEQ vs. KMLM - Expense Ratio Comparison

HFEQ has a 1.00% expense ratio, which is higher than KMLM's 0.90% expense ratio.

Dividends

HFEQ vs. KMLM - Dividend Comparison

HFEQ's dividend yield for the trailing twelve months is around 9.25%, more than KMLM's 4.53% yield.

Position	TTM	2025	2024	2023	2022	2021
HFEQ Unlimited HFEQ Equity Long/Short ETF	9.25%	10.55%	0.00%	0.00%	0.00%	0.00%
KMLM KFA Mount Lucas Index Strategy ETF	4.53%	5.02%	0.82%	0.00%	13.22%	6.94%

Frequently Asked Questions

Can I hold both HFEQ and KMLM in my portfolio?

HFEQ and KMLM have a correlation of 0.03, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, HFEQ or KMLM?

On fees, KMLM is cheaper at 0.90% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, HFEQ or KMLM?

KMLM is cheaper with a 0.90% expense ratio, compared with 1.00% for HFEQ.

Which ETF pays a higher dividend yield, HFEQ or KMLM?

HFEQ has the higher dividend yield at 9.25%, compared with 4.53% for KMLM.

What is the main difference between HFEQ and KMLM?

They also come from different issuers: Unlimited and CICC. Their fees differ too: 1.00% for HFEQ and 0.90% for KMLM.