HSEP.L vs. LDEG.L

Last updated Jun 5, 2026

HSEP.L (HSBC Europe Sustainable Equity UCITS ETF EUR) and LDEG.L (L&G Quality Equity Dividends ESG Exclusions Europe ex-UK UCITS ETF) are both Europe Equities funds - HSEP.L tracks the MSCI Europe NR EUR while LDEG.L tracks the MSCI Europe Ex UK NR EUR. Both are passively managed. Over the past 5 years, HSEP.L returned 9.61%/yr vs 16.11%/yr for LDEG.L. A 0.73 correlation means they provide meaningful diversification when combined. HSEP.L charges 0.15%/yr vs 0.25%/yr for LDEG.L.

Performance

HSEP.L vs. LDEG.L - Performance Comparison

The chart below illustrates the hypothetical performance of a £10,000 investment in HSBC Europe Sustainable Equity UCITS ETF EUR (HSEP.L) and L&G Quality Equity Dividends ESG Exclusions Europe ex-UK UCITS ETF (LDEG.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

HSEP.L is traded in GBP, while LDEG.L is traded in GBp. To make them comparable, the LDEG.L values have been converted to GBP using the latest available exchange rates.

Returns By Period

The year-to-date returns for both stocks are quite close, with HSEP.L having a 10.84% return and LDEG.L slightly lower at 10.41%.

HSEP.L

• 1D: -0.04%
• 1M: 5.24%
• YTD: 10.84%
• 6M: 13.51%
• 1Y: 22.82%
• 3Y*: 15.06%
• 5Y*: 9.61%
• 10Y*: —

LDEG.L

• 1D: 0.89%
• 1M: 1.38%
• YTD: 10.41%
• 6M: 13.94%
• 1Y: 30.52%
• 3Y*: 23.92%
• 5Y*: 16.11%
• 10Y*: —

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

HSEP.L vs. LDEG.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
HSEP.L HSBC Europe Sustainable Equity UCITS ETF EUR	10.84%	25.17%	4.63%	13.07%	-6.18%	3.53%
LDEG.L L&G Quality Equity Dividends ESG Exclusions Europe ex-UK UCITS ETF	10.41%	44.92%	8.83%	14.32%	3.42%	2.83%

Correlation

The correlation between HSEP.L and LDEG.L is 0.84, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.84
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since May 10, 2021	0.73

The correlation between HSEP.L and LDEG.L shifts across timeframes, from 0.73 (all time) to 0.87 (3 years), reflecting how their relationship changes across market environments.

HSEP.L vs. LDEG.L - Sectors Allocation Comparison

Sectors	HSEP.L	LDEG.L
Financial Services	28.5%	41.5%
Consumer Defensive	16.3%	3.1%
Industrials	14.5%	15.8%
Technology	11.7%	2.0%
Healthcare	9.1%	3.4%
Utilities	6.4%	8.2%
Consumer Cyclical	5.4%	3.3%
Communication Services	3.7%	5.2%
Basic Materials	2.9%	9.9%
Energy	1.3%	7.7%
Real Estate	0.2%	-

Return for Risk

HSEP.L vs. LDEG.L — Risk / Return Rank

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

HSEP.L

HSEP.L Risk / Return Rank: 48
HSEP.L Sharpe Ratio Rank: 51
HSEP.L Sortino Ratio Rank: 51
HSEP.L Omega Ratio Rank: 53
HSEP.L Calmar Ratio Rank: 41
HSEP.L Martin Ratio Rank: 45

LDEG.L

LDEG.L Risk / Return Rank: 78
LDEG.L Sharpe Ratio Rank: 82
LDEG.L Sortino Ratio Rank: 80
LDEG.L Omega Ratio Rank: 80
LDEG.L Calmar Ratio Rank: 76
LDEG.L Martin Ratio Rank: 74

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.

HSEP.L vs. LDEG.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for HSBC Europe Sustainable Equity UCITS ETF EUR (HSEP.L) and L&G Quality Equity Dividends ESG Exclusions Europe ex-UK UCITS ETF (LDEG.L). 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.

	HSEP.L	LDEG.L	Difference
Sharpe ratio: Return per unit of total volatility	1.73	2.63	-0.90
Sortino ratio: Return per unit of downside risk	2.42	3.52	-1.09
Omega ratio: Gain probability vs. loss probability	1.32	1.48	-0.15
Calmar ratio: Return relative to maximum drawdown	1.96	3.78	-1.82
Martin ratio: Return relative to average drawdown	7.14	13.82	-6.68
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HSEP.L vs. LDEG.L - Sharpe Ratio Comparison

The current HSEP.L Sharpe Ratio is 1.73, which is lower than the LDEG.L Sharpe Ratio of 2.63. The chart below compares the historical Sharpe Ratios of HSEP.L and LDEG.L, 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

	HSEP.L	LDEG.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.73	2.63	-0.90
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	1.24	-0.56
Sharpe Ratio (All Time) Calculated using the full available price history	0.77	1.24	-0.47

Drawdowns

HSEP.L vs. LDEG.L - Drawdown Comparison

The maximum HSEP.L drawdown since its inception was -17.96%, which is greater than LDEG.L's maximum drawdown of -15.97%. Use the drawdown chart below to compare losses from any high point for HSEP.L and LDEG.L.

Drawdown Indicators

	HSEP.L	LDEG.L	Difference
Max Drawdown Largest peak-to-trough decline	-17.96%	-15.97%	-1.99%
Max Drawdown (1Y) Largest decline over 1 year	-11.57%	-8.04%	-3.53%
Max Drawdown (3Y) Largest decline over 3 years	-11.79%	-12.05%	+0.26%
Max Drawdown (5Y) Largest decline over 5 years	-17.96%	-15.97%	-1.99%
Current Drawdown Current decline from peak	-0.94%	-1.33%	+0.39%
Average Drawdown Average peak-to-trough decline	-3.47%	-2.95%	-0.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.19%	2.20%	+0.99%

Volatility

HSEP.L vs. LDEG.L - Volatility Comparison

HSBC Europe Sustainable Equity UCITS ETF EUR (HSEP.L) has a higher volatility of 4.61% compared to L&G Quality Equity Dividends ESG Exclusions Europe ex-UK UCITS ETF (LDEG.L) at 3.57%. This indicates that HSEP.L's price experiences larger fluctuations and is considered to be riskier than LDEG.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HSEP.L	LDEG.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.61%	3.57%	+1.04%
Volatility (6M) Calculated over the trailing 6-month period	11.07%	9.21%	+1.86%
Volatility (1Y) Calculated over the trailing 1-year period	13.15%	11.55%	+1.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.17%	15.99%	-1.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.52%	16.01%	-1.49%

HSEP.L vs. LDEG.L - Expense Ratio Comparison

HSEP.L has a 0.15% expense ratio, which is lower than LDEG.L's 0.25% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

HSEP.L vs. LDEG.L - Dividend Comparison

HSEP.L has not paid dividends to shareholders, while LDEG.L's dividend yield for the trailing twelve months is around 3.13%.

Position	TTM	2025	2024	2023	2022	2021
HSEP.L HSBC Europe Sustainable Equity UCITS ETF EUR	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
LDEG.L L&G Quality Equity Dividends ESG Exclusions Europe ex-UK UCITS ETF	3.13%	3.43%	4.21%	4.11%	3.70%	3.11%

Frequently Asked Questions

Can I hold both HSEP.L and LDEG.L in my portfolio?

HSEP.L and LDEG.L have a correlation of 0.84, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, HSEP.L or LDEG.L?

On fees, HSEP.L is cheaper at 0.15% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, HSEP.L or LDEG.L?

HSEP.L is cheaper with a 0.15% expense ratio, compared with 0.25% for LDEG.L.

What is the main difference between HSEP.L and LDEG.L?

HSEP.L tracks MSCI Europe NR EUR, while LDEG.L tracks MSCI Europe Ex UK NR EUR. They also come from different issuers: HSBC and Legal & General. Their fees differ too: 0.15% for HSEP.L and 0.25% for LDEG.L.