MSTB vs. FHEQ

Last updated Jun 4, 2026

MSTB (LHA Market State Tactical Beta ETF) and FHEQ (Fidelity Hedged Equity ETF) are both Equity Hedged funds. MSTB is passively managed, while FHEQ is actively managed. Over the past year, MSTB returned 20.33% vs 20.68% for FHEQ. Their correlation of 0.89 suggests significant overlap in exposure. MSTB charges 1.40%/yr vs 0.48%/yr for FHEQ.

Performance

MSTB vs. FHEQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LHA Market State Tactical Beta ETF (MSTB) and Fidelity Hedged Equity ETF (FHEQ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with MSTB having a 8.71% return and FHEQ slightly lower at 8.69%.

MSTB

• 1D: -0.60%
• 1M: 3.88%
• YTD: 8.71%
• 6M: 8.70%
• 1Y: 20.33%
• 3Y*: 18.51%
• 5Y*: 8.55%
• 10Y*: —

FHEQ

• 1D: -0.59%
• 1M: 4.59%
• YTD: 8.69%
• 6M: 8.06%
• 1Y: 20.68%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MSTB vs. FHEQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MSTB LHA Market State Tactical Beta ETF	8.71%	18.57%	8.89%
FHEQ Fidelity Hedged Equity ETF	8.69%	13.34%	10.57%

Correlation

The correlation between MSTB and FHEQ is 0.91, 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	0.91
Correlation (All Time) Calculated using the full available price history since Apr 12, 2024	0.89

The correlation between MSTB and FHEQ has been stable across timeframes, ranging from 0.89 to 0.91 - a consistent structural relationship.

Return for Risk

MSTB vs. FHEQ — Risk / Return Rank

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

MSTB

MSTB Risk / Return Rank: 56
MSTB Sharpe Ratio Rank: 59
MSTB Sortino Ratio Rank: 58
MSTB Omega Ratio Rank: 60
MSTB Calmar Ratio Rank: 50
MSTB Martin Ratio Rank: 55

FHEQ

FHEQ Risk / Return Rank: 63
FHEQ Sharpe Ratio Rank: 67
FHEQ Sortino Ratio Rank: 68
FHEQ Omega Ratio Rank: 64
FHEQ Calmar Ratio Rank: 54
FHEQ Martin Ratio Rank: 61

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.

MSTB vs. FHEQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LHA Market State Tactical Beta ETF (MSTB) and Fidelity Hedged Equity ETF (FHEQ). 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.

	MSTB	FHEQ	Difference
Sharpe ratio: Return per unit of total volatility	2.00	2.22	-0.22
Sortino ratio: Return per unit of downside risk	2.75	3.14	-0.39
Omega ratio: Gain probability vs. loss probability	1.37	1.39	-0.03
Calmar ratio: Return relative to maximum drawdown	2.46	2.67	-0.21
Martin ratio: Return relative to average drawdown	9.32	10.82	-1.49
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MSTB vs. FHEQ - Sharpe Ratio Comparison

The current MSTB Sharpe Ratio is 2.00, which is comparable to the FHEQ Sharpe Ratio of 2.22. The chart below compares the historical Sharpe Ratios of MSTB and FHEQ, 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

	MSTB	FHEQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.00	2.22	-0.22
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.83	1.51	-0.68

Drawdowns

MSTB vs. FHEQ - Drawdown Comparison

The maximum MSTB drawdown since its inception was -25.64%, which is greater than FHEQ's maximum drawdown of -11.12%. Use the drawdown chart below to compare losses from any high point for MSTB and FHEQ.

Drawdown Indicators

	MSTB	FHEQ	Difference
Max Drawdown Largest peak-to-trough decline	-25.64%	-11.12%	-14.52%
Max Drawdown (1Y) Largest decline over 1 year	-8.31%	-7.77%	-0.54%
Max Drawdown (3Y) Largest decline over 3 years	-10.81%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-25.64%	—	—
Current Drawdown Current decline from peak	-0.60%	-0.59%	-0.01%
Average Drawdown Average peak-to-trough decline	-7.18%	-1.82%	-5.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.19%	1.92%	+0.27%

Volatility

MSTB vs. FHEQ - Volatility Comparison

LHA Market State Tactical Beta ETF (MSTB) and Fidelity Hedged Equity ETF (FHEQ) have volatilities of 2.56% and 2.45%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTB	FHEQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.56%	2.45%	+0.11%
Volatility (6M) Calculated over the trailing 6-month period	7.43%	6.65%	+0.78%
Volatility (1Y) Calculated over the trailing 1-year period	10.21%	9.38%	+0.83%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.97%	10.38%	+3.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.84%	10.38%	+3.46%

MSTB vs. FHEQ - Expense Ratio Comparison

MSTB has a 1.40% expense ratio, which is higher than FHEQ's 0.48% expense ratio.

Dividends

MSTB vs. FHEQ - Dividend Comparison

MSTB's dividend yield for the trailing twelve months is around 0.38%, less than FHEQ's 0.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
FHEQ Fidelity Hedged Equity ETF	0.58%	0.63%	0.50%	0.00%	0.00%	0.00%	0.00%
MSTB LHA Market State Tactical Beta ETF	0.38%	0.41%	0.95%	0.16%	1.34%	2.20%	1.78%

Frequently Asked Questions

Can I hold both MSTB and FHEQ in my portfolio?

With a correlation of 0.91, MSTB and FHEQ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, MSTB or FHEQ?

MSTB has higher volatility (2.56%) compared to FHEQ (2.45%). In terms of maximum drawdown, MSTB dropped -25.64% vs FHEQ's -11.12%.

Which ETF is better, MSTB or FHEQ?

On 1-year performance, FHEQ leads with 20.68% vs 20.33% for MSTB. On fees, FHEQ is cheaper at 0.48% per year. On volatility, FHEQ has been the lower-risk option at 2.45%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTB or FHEQ?

Over the 1-year period, FHEQ has performed better with a 20.68% return vs 20.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTB or FHEQ?

FHEQ is cheaper with a 0.48% expense ratio, compared with 1.40% for MSTB.

Which ETF pays a higher dividend yield, MSTB or FHEQ?

FHEQ has the higher dividend yield at 0.58%, compared with 0.38% for MSTB.

What is the main difference between MSTB and FHEQ?

They also come from different issuers: Little Harbor Advisors and Fidelity. Their fees differ too: 1.40% for MSTB and 0.48% for FHEQ.

Which has better risk-adjusted returns?

FHEQ currently has the higher Sharpe Ratio (2.22 vs 2.00), 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.