LMT vs. PHDG

Last updated Jul 25, 2026

LMT (Lockheed Martin Corporation) is a stock, while PHDG (Invesco S&P 500 Downside Hedged ETF) is Equity Hedged fund tracking the S&P 500 Dynamic VEQTOR Index. Over the past 10 years, LMT returned 11.54%/yr vs 7.14%/yr for PHDG. Their 0.24 correlation means their historical movements had little consistent relationship.

Performance

LMT vs. PHDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Lockheed Martin Corporation (LMT) 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, LMT achieves a 21.88% return, which is significantly higher than PHDG's 9.47% return. Over the past 10 years, LMT has outperformed PHDG with an annualized return of 11.54%, while PHDG has yielded a comparatively lower 7.14% annualized return.

LMT

• 1D: 2.46%
• 1M: 15.36%
• 6M: -0.22%
• YTD: 21.88%
• 1Y: 42.06%
• 3Y*: 11.61%
• 5Y*: 11.85%
• 10Y*: 11.54%
• ALL TIME*: 12.38%

PHDG

• 1D: -0.16%
• 1M: 0.44%
• 6M: 8.74%
• YTD: 9.47%
• 1Y: 14.71%
• 3Y*: 8.21%
• 5Y*: 4.01%
• 10Y*: 7.14%
• ALL TIME*: 5.56%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
LMT Lockheed Martin Corporation	$682.65M	$676.87M	$688.00M
PHDG Invesco S&P 500 Downside Hedged ETF	$1.28M	$774.65K	$908.35K

LMT vs. PHDG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
LMT Lockheed Martin Corporation	21.88%	2.47%	10.02%	-4.31%	40.48%	3.15%	-6.49%	52.55%	-16.35%	31.77%
PHDG Invesco S&P 500 Downside Hedged ETF	9.47%	2.72%	10.95%	8.18%	-14.09%	15.67%	18.97%	8.57%	-2.44%	15.89%

Correlation

The correlation between LMT and PHDG is -0.04, meaning there was essentially no consistent relationship between their historical price movements. Each responded to its own set of market drivers.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.04
Correlation (3Y) Balances recent behavior with more history.	-0.00
Correlation (5Y) Shows whether the relationship held over a longer period.	0.09
Correlation (10Y) Provides a long-term view across more market conditions.	0.16
Correlation (All Time) Calculated using the full available price history since Dec 6, 2012	0.24

The correlation between LMT and PHDG shifts across timeframes, from -0.04 (1 year) to 0.24 (all time), reflecting how their relationship changes across market environments.

Return for Risk

LMT vs. PHDG — Risk / Return Rank

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

LMT

LMT Risk / Return Rank: 81
LMT Sharpe Ratio Rank: 87
LMT Sortino Ratio Rank: 86
LMT Omega Ratio Rank: 84
LMT Calmar Ratio Rank: 76
LMT Martin Ratio Rank: 74

PHDG

PHDG Risk / Return Rank: 61
PHDG Sharpe Ratio Rank: 56
PHDG Sortino Ratio Rank: 55
PHDG Omega Ratio Rank: 63
PHDG Calmar Ratio Rank: 68
PHDG Martin Ratio Rank: 62

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.

LMT vs. PHDG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Lockheed Martin Corporation (LMT) 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.

	LMT	PHDG	Difference
Sharpe ratio: Return per unit of total volatility	1.57	1.33	+0.24
Sortino ratio: Return per unit of downside risk	2.36	1.89	+0.47
Omega ratio: Gain probability vs. loss probability	1.28	1.27	+0.01
Calmar ratio: Return relative to maximum drawdown	1.58	2.38	-0.80
Martin ratio: Return relative to average drawdown	3.38	7.41	-4.03

LMT vs. PHDG - Sharpe Ratio Comparison

The current LMT Sharpe Ratio is 1.57, which is comparable to the PHDG Sharpe Ratio of 1.33. The chart below compares the historical Sharpe Ratios of LMT 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

LMT vs. PHDG - Drawdown Comparison

The maximum LMT drawdown since its inception was -79.29%, which is greater than PHDG's maximum drawdown of -17.70%. Use the drawdown chart below to compare losses from any high point for LMT and PHDG.

Drawdown Indicators

	LMT	PHDG	Difference
Max Drawdown Largest peak-to-trough decline	-79.29%	-17.70%	-61.59%
Max Drawdown (1Y) Largest decline over 1 year	-26.87%	-6.36%	-20.51%
Max Drawdown (3Y) Largest decline over 3 years	-31.79%	-14.78%	-17.01%
Max Drawdown (5Y) Largest decline over 5 years	-31.79%	-17.06%	-14.73%
Max Drawdown (10Y) Largest decline over 10 years	-36.67%	-17.06%	-19.61%
Current Drawdown Current decline from peak	-13.34%	-5.95%	-7.39%
Average Drawdown Average peak-to-trough decline	-26.82%	-6.23%	-20.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	12.54%	2.04%	+10.50%

Volatility

LMT vs. PHDG - Volatility Comparison

Lockheed Martin Corporation (LMT) has a higher volatility of 12.24% compared to Invesco S&P 500 Downside Hedged ETF (PHDG) at 2.14%. This indicates that LMT's price experiences larger fluctuations and is considered to be riskier than PHDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LMT	PHDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.24%	2.14%	+10.10%
Volatility (6M) Calculated over the trailing 6-month period	22.08%	9.37%	+12.71%
Volatility (1Y) Calculated over the trailing 1-year period	27.06%	11.41%	+15.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	23.79%	11.37%	+12.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.18%	12.10%	+12.08%

Dividends

LMT vs. PHDG - Dividend Comparison

LMT's dividend yield for the trailing twelve months is around 2.34%, more than PHDG's 1.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
LMT Lockheed Martin Corporation	2.34%	2.76%	2.62%	2.68%	2.34%	2.98%	2.76%	2.31%	3.13%	2.32%	2.71%	2.83%
PHDG Invesco S&P 500 Downside Hedged ETF	1.70%	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 LMT and PHDG in my portfolio?

LMT and PHDG 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, LMT or PHDG?

LMT has higher volatility (12.24%) compared to PHDG (2.14%). In terms of maximum drawdown, LMT dropped -79.29% vs PHDG's -17.70%.

Which has better risk-adjusted returns?

LMT currently has the higher Sharpe Ratio (1.57 vs 1.33), 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.