MDIV vs. HIPS

Last updated Jun 4, 2026

MDIV (First Trust Multi-Asset Diversified Income Index Fund) and HIPS (GraniteShares HIPS US High Income ETF) are both Diversified Portfolio funds - MDIV tracks the NASDAQ US Multi-Asset Diversified Income Index while HIPS tracks the TFMS HIPS Index. Both are passively managed. Over the past 10 years, MDIV returned 4.66%/yr vs 5.55%/yr for HIPS. A 0.71 correlation means they provide meaningful diversification when combined. MDIV charges 0.73%/yr vs 3.19%/yr for HIPS.

Performance

MDIV vs. HIPS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Multi-Asset Diversified Income Index Fund (MDIV) and GraniteShares HIPS US High Income ETF (HIPS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MDIV achieves a 7.68% return, which is significantly higher than HIPS's 3.28% return. Over the past 10 years, MDIV has underperformed HIPS with an annualized return of 4.66%, while HIPS has yielded a comparatively higher 5.55% annualized return.

MDIV

• 1D: -0.65%
• 1M: 0.10%
• YTD: 7.68%
• 6M: 7.38%
• 1Y: 11.03%
• 3Y*: 11.41%
• 5Y*: 5.65%
• 10Y*: 4.66%

HIPS

• 1D: -0.79%
• 1M: -3.49%
• YTD: 3.28%
• 6M: 2.30%
• 1Y: 6.18%
• 3Y*: 10.94%
• 5Y*: 3.96%
• 10Y*: 5.55%

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

MDIV vs. HIPS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MDIV First Trust Multi-Asset Diversified Income Index Fund	7.68%	3.77%	10.05%	11.50%	-3.86%	16.51%	-14.84%	18.59%	-5.78%	5.61%
HIPS GraniteShares HIPS US High Income ETF	3.28%	1.00%	13.71%	16.09%	-13.47%	22.65%	-11.74%	22.94%	-9.30%	6.30%

Correlation

The correlation between MDIV and HIPS is 0.65, 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	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.67
Correlation (5Y) Calculated over the trailing 5-year period	0.72
Correlation (10Y) Calculated over the trailing 10-year period	0.72
Correlation (All Time) Calculated using the full available price history since Jan 8, 2015	0.71

The correlation between MDIV and HIPS has been stable across timeframes, ranging from 0.65 to 0.72 - a consistent structural relationship.

MDIV vs. HIPS - Sectors Allocation Comparison

Sectors	MDIV	HIPS
Financial Services	22.4%	31.6%
Real Estate	21.6%	31.7%
Energy	17.6%	32.7%
Utilities	9.6%	-
Consumer Defensive	8.0%	-
Communication Services	3.2%	0.0%
Consumer Cyclical	3.2%	-
Healthcare	1.6%	-
Industrials	1.6%	-
Basic Materials	0.7%	4.0%
Technology	-	-

Return for Risk

MDIV vs. HIPS — Risk / Return Rank

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

MDIV

MDIV Risk / Return Rank: 52
MDIV Sharpe Ratio Rank: 47
MDIV Sortino Ratio Rank: 49
MDIV Omega Ratio Rank: 45
MDIV Calmar Ratio Rank: 65
MDIV Martin Ratio Rank: 53

HIPS

HIPS Risk / Return Rank: 20
HIPS Sharpe Ratio Rank: 19
HIPS Sortino Ratio Rank: 18
HIPS Omega Ratio Rank: 18
HIPS Calmar Ratio Rank: 22
HIPS Martin Ratio Rank: 22

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.

MDIV vs. HIPS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Multi-Asset Diversified Income Index Fund (MDIV) and GraniteShares HIPS US High Income ETF (HIPS). 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.

	MDIV	HIPS	Difference
Sharpe ratio: Return per unit of total volatility	1.65	0.65	+1.00
Sortino ratio: Return per unit of downside risk	2.44	0.97	+1.47
Omega ratio: Gain probability vs. loss probability	1.29	1.11	+0.18
Calmar ratio: Return relative to maximum drawdown	3.27	1.01	+2.26
Martin ratio: Return relative to average drawdown	9.10	2.70	+6.39
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MDIV vs. HIPS - Sharpe Ratio Comparison

The current MDIV Sharpe Ratio is 1.65, which is higher than the HIPS Sharpe Ratio of 0.65. The chart below compares the historical Sharpe Ratios of MDIV and HIPS, 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

	MDIV	HIPS	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.65	0.65	+1.00
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	0.30	+0.22
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.31	0.31	0.00
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.23	+0.12

Drawdowns

MDIV vs. HIPS - Drawdown Comparison

The maximum MDIV drawdown since its inception was -48.50%, smaller than the maximum HIPS drawdown of -53.14%. Use the drawdown chart below to compare losses from any high point for MDIV and HIPS.

Drawdown Indicators

	MDIV	HIPS	Difference
Max Drawdown Largest peak-to-trough decline	-48.50%	-53.14%	+4.64%
Max Drawdown (1Y) Largest decline over 1 year	-3.39%	-6.15%	+2.76%
Max Drawdown (3Y) Largest decline over 3 years	-9.62%	-15.41%	+5.79%
Max Drawdown (5Y) Largest decline over 5 years	-13.02%	-21.28%	+8.26%
Max Drawdown (10Y) Largest decline over 10 years	-48.50%	-53.14%	+4.64%
Current Drawdown Current decline from peak	-1.14%	-4.23%	+3.09%
Average Drawdown Average peak-to-trough decline	-4.58%	-7.39%	+2.81%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.22%	2.29%	-1.07%

Volatility

MDIV vs. HIPS - Volatility Comparison

The current volatility for First Trust Multi-Asset Diversified Income Index Fund (MDIV) is 1.62%, while GraniteShares HIPS US High Income ETF (HIPS) has a volatility of 1.77%. This indicates that MDIV experiences smaller price fluctuations and is considered to be less risky than HIPS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MDIV	HIPS	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.62%	1.77%	-0.15%
Volatility (6M) Calculated over the trailing 6-month period	4.32%	7.05%	-2.73%
Volatility (1Y) Calculated over the trailing 1-year period	6.71%	9.57%	-2.86%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.93%	13.29%	-2.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.23%	18.07%	-2.84%

MDIV vs. HIPS - Expense Ratio Comparison

MDIV has a 0.73% expense ratio, which is lower than HIPS's 3.19% expense ratio.

Dividends

MDIV vs. HIPS - Dividend Comparison

MDIV's dividend yield for the trailing twelve months is around 6.39%, less than HIPS's 11.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HIPS GraniteShares HIPS US High Income ETF	11.19%	11.04%	10.04%	10.32%	10.76%	8.43%	9.50%	6.93%	8.66%	7.28%	7.20%	8.17%
MDIV First Trust Multi-Asset Diversified Income Index Fund	6.39%	6.51%	6.40%	6.08%	6.71%	5.30%	6.00%	5.90%	6.76%	6.04%	6.35%	7.38%

Frequently Asked Questions

Can I hold both MDIV and HIPS in my portfolio?

MDIV and HIPS have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MDIV or HIPS?

HIPS has higher volatility (1.77%) compared to MDIV (1.62%). In terms of maximum drawdown, MDIV dropped -48.50% vs HIPS's -53.14%.

Which ETF is better, MDIV or HIPS?

On 10-year performance, HIPS leads with 5.55% vs 4.66% for MDIV. On fees, MDIV is cheaper at 0.73% per year. On volatility, MDIV has been the lower-risk option at 1.62%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MDIV or HIPS?

Over the 10-year period, HIPS has performed better with a 5.55% return vs 4.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MDIV or HIPS?

MDIV is cheaper with a 0.73% expense ratio, compared with 3.19% for HIPS.

Which ETF pays a higher dividend yield, MDIV or HIPS?

HIPS has the higher dividend yield at 11.19%, compared with 6.39% for MDIV.

What is the main difference between MDIV and HIPS?

MDIV tracks NASDAQ US Multi-Asset Diversified Income Index, while HIPS tracks TFMS HIPS Index. They also come from different issuers: First Trust and GraniteShares. Their fees differ too: 0.73% for MDIV and 3.19% for HIPS.

Which has better risk-adjusted returns?

MDIV currently has the higher Sharpe Ratio (1.65 vs 0.65), 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.