HFSP vs. KMLM

Last updated Jun 24, 2026

HFSP (TradersAI Large Cap Equity & Cash ETF) and KMLM (KFA Mount Lucas Index Strategy ETF) are both exchange-traded funds - HFSP is a Long-Short fund actively managed by TradersAI, while KMLM is a Systematic Trend fund tracking the KFA MLM Index. HFSP is actively managed, while KMLM is passively managed. Over the past year, HFSP returned -21.48% vs 12.95% for KMLM. At a correlation of -0.01, they often move in opposite directions. HFSP charges 1.25%/yr vs 0.90%/yr for KMLM.

Performance

HFSP vs. KMLM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in TradersAI Large Cap Equity & Cash ETF (HFSP) 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, HFSP achieves a -8.37% return, which is significantly lower than KMLM's 6.97% return.

HFSP

• 1D: 0.00%
• 1M: -2.51%
• YTD: -8.37%
• 6M: -8.88%
• 1Y: -21.48%
• 3Y*: —
• 5Y*: —
• 10Y*: —

KMLM

• 1D: -0.79%
• 1M: -4.98%
• YTD: 6.97%
• 6M: 6.95%
• 1Y: 12.95%
• 3Y*: -0.70%
• 5Y*: 4.34%
• 10Y*: —

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

HFSP vs. KMLM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
HFSP TradersAI Large Cap Equity & Cash ETF	-8.37%	-24.01%	0.75%
KMLM KFA Mount Lucas Index Strategy ETF	6.97%	-2.98%	1.36%

Correlation

The correlation between HFSP and KMLM is -0.04, 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 (1Y) Calculated over the trailing 1-year period	-0.04
Correlation (All Time) Calculated using the full available price history since Oct 24, 2024	-0.01

Return for Risk

HFSP vs. KMLM — Risk / Return Rank

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

HFSP

HFSP Risk / Return Rank: 1
HFSP Sharpe Ratio Rank: 0
HFSP Sortino Ratio Rank: 1
HFSP Omega Ratio Rank: 1
HFSP Calmar Ratio Rank: 2
HFSP Martin Ratio Rank: 1

KMLM

KMLM Risk / Return Rank: 33
KMLM Sharpe Ratio Rank: 33
KMLM Sortino Ratio Rank: 31
KMLM Omega Ratio Rank: 32
KMLM Calmar Ratio Rank: 33
KMLM Martin Ratio Rank: 37

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.

HFSP vs. KMLM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for TradersAI Large Cap Equity & Cash ETF (HFSP) 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.

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.

	HFSP	KMLM	Difference
Sharpe ratio: Return per unit of total volatility	-1.20	1.16	-2.35
Sortino ratio: Return per unit of downside risk	-1.55	1.61	-3.16
Omega ratio: Gain probability vs. loss probability	0.79	1.21	-0.41
Calmar ratio: Return relative to maximum drawdown	-0.84	1.62	-2.45
Martin ratio: Return relative to average drawdown	-1.43	5.47	-6.89

HFSP vs. KMLM - Sharpe Ratio Comparison

The current HFSP Sharpe Ratio is -1.20, which is lower than the KMLM Sharpe Ratio of 1.16. The chart below compares the historical Sharpe Ratios of HFSP and KMLM, 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

HFSP vs. KMLM - Drawdown Comparison

The maximum HFSP drawdown since its inception was -34.84%, which is greater than KMLM's maximum drawdown of -27.47%. Use the drawdown chart below to compare losses from any high point for HFSP and KMLM.

Drawdown Indicators

	HFSP	KMLM	Difference
Max Drawdown Largest peak-to-trough decline	-34.84%	-27.47%	-7.37%
Max Drawdown (1Y) Largest decline over 1 year	-25.82%	-8.04%	-17.78%
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	-33.96%	-16.59%	-17.37%
Average Drawdown Average peak-to-trough decline	-17.54%	-12.76%	-4.78%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.08%	2.37%	+12.71%

Volatility

HFSP vs. KMLM - Volatility Comparison

TradersAI Large Cap Equity & Cash ETF (HFSP) has a higher volatility of 4.52% compared to KFA Mount Lucas Index Strategy ETF (KMLM) at 2.95%. This indicates that HFSP's price experiences larger fluctuations and is considered to be riskier than KMLM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HFSP	KMLM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.52%	2.95%	+1.57%
Volatility (6M) Calculated over the trailing 6-month period	12.59%	9.82%	+2.77%
Volatility (1Y) Calculated over the trailing 1-year period	18.12%	11.39%	+6.73%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.30%	14.57%	+9.73%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.30%	14.69%	+9.61%

HFSP vs. KMLM - Expense Ratio Comparison

HFSP has a 1.25% expense ratio, which is higher than KMLM's 0.90% expense ratio.

Dividends

HFSP vs. KMLM - Dividend Comparison

HFSP has not paid dividends to shareholders, while KMLM's dividend yield for the trailing twelve months is around 4.70%.

Position	TTM	2025	2024	2023	2022	2021
HFSP TradersAI Large Cap Equity & Cash ETF	0.00%	0.00%	1.53%	0.00%	0.00%	0.00%
KMLM KFA Mount Lucas Index Strategy ETF	4.70%	5.02%	0.82%	0.00%	13.22%	6.94%

Frequently Asked Questions

Can I hold both HFSP and KMLM in my portfolio?

HFSP and KMLM have a correlation of -0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HFSP or KMLM?

HFSP has higher volatility (4.52%) compared to KMLM (2.95%). In terms of maximum drawdown, HFSP dropped -34.84% vs KMLM's -27.47%.

Which ETF is better, HFSP or KMLM?

On 1-year performance, KMLM leads with 12.95% vs -21.48% for HFSP. On fees, KMLM is cheaper at 0.90% per year. On volatility, KMLM has been the lower-risk option at 2.95%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HFSP or KMLM?

Over the 1-year period, KMLM has performed better with a 12.95% return vs -21.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HFSP or KMLM?

KMLM is cheaper with a 0.90% expense ratio, compared with 1.25% for HFSP.

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

KMLM has the higher dividend yield at 4.70%, compared with 0.00% for HFSP.

What is the main difference between HFSP and KMLM?

HFSP is categorized as Long-Short, while KMLM is Systematic Trend. They also come from different issuers: TradersAI and KraneShares. Their fees differ too: 1.25% for HFSP and 0.90% for KMLM.

Which has better risk-adjusted returns?

KMLM currently has the higher Sharpe Ratio (1.16 vs -1.20), 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.