MNA vs. HDG
MNA (IQ Merger Arbitrage ETF) and HDG (ProShares Hedge Replication) are both exchange-traded funds - MNA is a Hedge Fund fund tracking the IQ Merger Arbitrage Index, while HDG is a Long-Short fund tracking the Merrill Lynch Factor Model - Exchange Series. Both are passively managed. Over the past 10 years, MNA returned 2.81%/yr vs 4.03%/yr for HDG. At a 0.35 correlation, their price movements are largely independent. MNA charges 0.77%/yr vs 0.95%/yr for HDG.
Performance
MNA vs. HDG - Performance Comparison
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Returns By Period
In the year-to-date period, MNA achieves a 1.82% return, which is significantly lower than HDG's 6.72% return. Over the past 10 years, MNA has underperformed HDG with an annualized return of 2.81%, while HDG has yielded a comparatively higher 4.03% annualized return.
MNA
- 1D
- -0.08%
- 1M
- 0.36%
- YTD
- 1.82%
- 6M
- 1.21%
- 1Y
- 3.91%
- 3Y*
- 5.81%
- 5Y*
- 1.95%
- 10Y*
- 2.81%
HDG
- 1D
- -1.01%
- 1M
- 1.97%
- YTD
- 6.72%
- 6M
- 7.34%
- 1Y
- 13.39%
- 3Y*
- 7.36%
- 5Y*
- 3.15%
- 10Y*
- 4.03%
MNA vs. HDG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
MNA IQ Merger Arbitrage ETF | 1.82% | 8.59% | 4.93% | 0.18% | -1.61% | -3.24% | 2.72% | 4.70% | 2.13% | 5.97% |
HDG ProShares Hedge Replication | 6.72% | 7.18% | 5.12% | 7.14% | -8.48% | 2.97% | 7.45% | 9.58% | -4.52% | 5.59% |
Correlation
The correlation between MNA and HDG is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.41 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.45 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.36 |
Correlation (All Time) Calculated using the full available price history since Jul 14, 2011 | 0.35 |
The correlation between MNA and HDG shifts across timeframes, from 0.35 (all time) to 0.45 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
MNA vs. HDG — Risk / Return Rank
MNA
HDG
MNA vs. HDG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for IQ Merger Arbitrage ETF (MNA) and ProShares Hedge Replication (HDG). 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.
| MNA | HDG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.36 | ||
| Sortino ratioReturn per unit of downside risk | -1.95 | ||
| Omega ratioGain probability vs. loss probability | 1.15 | 1.43 | -0.28 |
| Calmar ratioReturn relative to maximum drawdown | 2.81 | 3.39 | -0.58 |
| Martin ratioReturn relative to average drawdown | 6.93 | 13.78 | -6.85 |
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Drawdowns
MNA vs. HDG - Drawdown Comparison
The maximum MNA drawdown since its inception was -16.68%, which is greater than HDG's maximum drawdown of -15.31%. Use the drawdown chart below to compare losses from any high point for MNA and HDG.
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Drawdown Indicators
| MNA | HDG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.68% | -15.31% | -1.37% |
Max Drawdown (1Y)Largest decline over 1 year | -1.40% | -3.97% | +2.57% |
Max Drawdown (3Y)Largest decline over 3 years | -3.01% | -7.20% | +4.19% |
Max Drawdown (5Y)Largest decline over 5 years | -10.24% | -15.31% | +5.07% |
Max Drawdown (10Y)Largest decline over 10 years | -16.68% | -15.31% | -1.37% |
Current DrawdownCurrent decline from peak | -0.52% | -1.01% | +0.49% |
Average DrawdownAverage peak-to-trough decline | -2.83% | -2.77% | -0.06% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.57% | 0.97% | -0.40% |
Volatility
MNA vs. HDG - Volatility Comparison
The current volatility for IQ Merger Arbitrage ETF (MNA) is 1.36%, while ProShares Hedge Replication (HDG) has a volatility of 2.90%. This indicates that MNA experiences smaller price fluctuations and is considered to be less risky than HDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| MNA | HDG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.36% | 2.90% | -1.54% |
Volatility (6M)Calculated over the trailing 6-month period | 3.50% | 5.22% | -1.72% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.75% | 6.14% | -1.39% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.98% | 7.23% | -2.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 6.55% | 7.15% | -0.60% |
MNA vs. HDG - Expense Ratio Comparison
MNA has a 0.77% expense ratio, which is lower than HDG's 0.95% expense ratio.
Dividends
MNA vs. HDG - Dividend Comparison
MNA has not paid dividends to shareholders, while HDG's dividend yield for the trailing twelve months is around 2.35%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HDG ProShares Hedge Replication | 2.35% | 2.55% | 3.50% | 3.48% | 0.39% | 0.00% | 0.08% | 1.09% | 0.51% | 0.00% | 0.00% | 0.00% |
MNA IQ Merger Arbitrage ETF | 0.00% | 0.00% | 0.00% | 1.20% | 0.00% | 0.00% | 2.30% | 0.00% | 0.00% | 0.00% | 0.21% | 0.87% |
Frequently Asked Questions
MNA and HDG have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HDG has higher volatility (2.90%) compared to MNA (1.36%). In terms of maximum drawdown, MNA dropped -16.68% vs HDG's -15.31%.
On 10-year performance, HDG leads with 4.03% vs 2.81% for MNA. On fees, MNA is cheaper at 0.77% per year. On volatility, MNA has been the lower-risk option at 1.36%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HDG has performed better with a 4.03% return vs 2.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
MNA is cheaper with a 0.77% expense ratio, compared with 0.95% for HDG.
HDG has the higher dividend yield at 2.35%, compared with 0.00% for MNA.
MNA is categorized as Hedge Fund, while HDG is Long-Short. MNA tracks IQ Merger Arbitrage Index, while HDG tracks Merrill Lynch Factor Model - Exchange Series. They also come from different issuers: New York Life and ProShares. Their fees differ too: 0.77% for MNA and 0.95% for HDG.
HDG currently has the higher Sharpe Ratio (2.19 vs 0.83), 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.
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