MSTB vs. HEGD

Last updated Jun 4, 2026

MSTB (LHA Market State Tactical Beta ETF) and HEGD (Swan Hedged Equity US Large Cap ETF) are both Equity Hedged funds - MSTB tracks the S&P 500® Index while HEGD tracks the S&P 500. Both are passively managed. Over the past 5 years, MSTB returned 8.55%/yr vs 9.03%/yr for HEGD. Their correlation of 0.84 suggests significant overlap in exposure. MSTB charges 1.40%/yr vs 0.88%/yr for HEGD.

Performance

MSTB vs. HEGD - Performance Comparison

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

Returns By Period

In the year-to-date period, MSTB achieves a 8.71% return, which is significantly higher than HEGD's 6.84% return.

MSTB

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

HEGD

• 1D: -0.63%
• 1M: 3.52%
• YTD: 6.84%
• 6M: 6.23%
• 1Y: 17.89%
• 3Y*: 14.64%
• 5Y*: 9.03%
• 10Y*: —

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

MSTB vs. HEGD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
MSTB LHA Market State Tactical Beta ETF	8.71%	18.57%	18.82%	16.94%	-22.72%	21.89%	1.71%
HEGD Swan Hedged Equity US Large Cap ETF	6.84%	12.95%	15.24%	14.16%	-11.25%	17.30%	0.99%

Correlation

The correlation between MSTB and HEGD is 0.89, 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	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (5Y) Calculated over the trailing 5-year period	0.84
Correlation (All Time) Calculated using the full available price history since Dec 24, 2020	0.84

The correlation between MSTB and HEGD has been stable across timeframes, ranging from 0.84 to 0.89 - a consistent structural relationship.

MSTB vs. HEGD - Sectors Allocation Comparison

Sectors	MSTB	HEGD
Technology	36.1%	36.1%
Financial Services	11.9%	11.8%
Communication Services	10.9%	11.0%
Consumer Cyclical	10.1%	10.1%
Healthcare	8.4%	8.4%
Industrials	8.2%	8.2%
Consumer Defensive	4.9%	4.9%
Energy	3.5%	3.5%
Utilities	2.3%	2.3%
Real Estate	1.9%	1.9%
Basic Materials	1.8%	1.8%

Return for Risk

MSTB vs. HEGD — 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

HEGD

HEGD Risk / Return Rank: 79
HEGD Sharpe Ratio Rank: 78
HEGD Sortino Ratio Rank: 81
HEGD Omega Ratio Rank: 78
HEGD Calmar Ratio Rank: 79
HEGD Martin Ratio Rank: 81

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. HEGD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LHA Market State Tactical Beta ETF (MSTB) and Swan Hedged Equity US Large Cap ETF (HEGD). 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	HEGD	Difference
Sharpe ratio: Return per unit of total volatility	2.00	2.59	-0.59
Sortino ratio: Return per unit of downside risk	2.75	3.70	-0.95
Omega ratio: Gain probability vs. loss probability	1.37	1.47	-0.11
Calmar ratio: Return relative to maximum drawdown	2.46	4.10	-1.64
Martin ratio: Return relative to average drawdown	9.32	16.25	-6.93
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. HEGD - Sharpe Ratio Comparison

The current MSTB Sharpe Ratio is 2.00, which is comparable to the HEGD Sharpe Ratio of 2.59. The chart below compares the historical Sharpe Ratios of MSTB and HEGD, 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	HEGD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.00	2.59	-0.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.97	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.83	1.06	-0.23

Drawdowns

MSTB vs. HEGD - Drawdown Comparison

The maximum MSTB drawdown since its inception was -25.64%, which is greater than HEGD's maximum drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for MSTB and HEGD.

Drawdown Indicators

	MSTB	HEGD	Difference
Max Drawdown Largest peak-to-trough decline	-25.64%	-14.56%	-11.08%
Max Drawdown (1Y) Largest decline over 1 year	-8.31%	-4.39%	-3.92%
Max Drawdown (3Y) Largest decline over 3 years	-10.81%	-8.14%	-2.67%
Max Drawdown (5Y) Largest decline over 5 years	-25.64%	-14.56%	-11.08%
Current Drawdown Current decline from peak	-0.60%	-0.63%	+0.03%
Average Drawdown Average peak-to-trough decline	-7.18%	-3.66%	-3.52%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.19%	1.10%	+1.09%

Volatility

MSTB vs. HEGD - Volatility Comparison

LHA Market State Tactical Beta ETF (MSTB) has a higher volatility of 2.56% compared to Swan Hedged Equity US Large Cap ETF (HEGD) at 2.34%. This indicates that MSTB's price experiences larger fluctuations and is considered to be riskier than HEGD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTB	HEGD	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.56%	2.34%	+0.22%
Volatility (6M) Calculated over the trailing 6-month period	7.43%	4.95%	+2.48%
Volatility (1Y) Calculated over the trailing 1-year period	10.21%	6.96%	+3.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.97%	9.40%	+4.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.84%	9.35%	+4.49%

MSTB vs. HEGD - Expense Ratio Comparison

MSTB has a 1.40% expense ratio, which is higher than HEGD's 0.88% expense ratio.

Dividends

MSTB vs. HEGD - Dividend Comparison

MSTB's dividend yield for the trailing twelve months is around 0.38%, more than HEGD's 0.34% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
HEGD Swan Hedged Equity US Large Cap ETF	0.34%	0.36%	0.43%	0.39%	0.87%	0.31%	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 HEGD in my portfolio?

MSTB and HEGD have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSTB or HEGD?

MSTB has higher volatility (2.56%) compared to HEGD (2.34%). In terms of maximum drawdown, MSTB dropped -25.64% vs HEGD's -14.56%.

Which ETF is better, MSTB or HEGD?

On 5-year performance, HEGD leads with 9.03% vs 8.55% for MSTB. On fees, HEGD is cheaper at 0.88% per year. On volatility, HEGD has been the lower-risk option at 2.34%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTB or HEGD?

Over the 5-year period, HEGD has performed better with a 9.03% return vs 8.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTB or HEGD?

HEGD is cheaper with a 0.88% expense ratio, compared with 1.40% for MSTB.

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

MSTB has the higher dividend yield at 0.38%, compared with 0.34% for HEGD.

What is the main difference between MSTB and HEGD?

MSTB tracks S&P 500® Index, while HEGD tracks S&P 500. They also come from different issuers: Little Harbor Advisors and Swan. Their fees differ too: 1.40% for MSTB and 0.88% for HEGD.

Which has better risk-adjusted returns?

HEGD currently has the higher Sharpe Ratio (2.59 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.