MSTB vs. HEQQ

Last updated Jun 4, 2026

MSTB (LHA Market State Tactical Beta ETF) and HEQQ (JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF) are both exchange-traded funds - MSTB is a Equity Hedged fund tracking the S&P 500® Index, while HEQQ is a Nasdaq-100 fund managed by JPMorgan. Over the past year, MSTB returned 20.33% vs 17.08% for HEQQ. A 0.79 correlation means they provide meaningful diversification when combined. MSTB charges 1.40%/yr vs 0.50%/yr for HEQQ.

Performance

MSTB vs. HEQQ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LHA Market State Tactical Beta ETF (MSTB) and JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF (HEQQ). 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 HEQQ's 4.67% return.

MSTB

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

HEQQ

• 1D: -0.15%
• 1M: 0.96%
• YTD: 4.67%
• 6M: 4.45%
• 1Y: 17.08%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MSTB vs. HEQQ - Yearly Performance Comparison

	2026 (YTD)	2025
MSTB LHA Market State Tactical Beta ETF	8.71%	22.45%
HEQQ JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF	4.67%	17.20%

Correlation

The correlation between MSTB and HEQQ is 0.82, 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	0.82
Correlation (All Time) Calculated using the full available price history since Mar 28, 2025	0.79

The correlation between MSTB and HEQQ has been stable across timeframes, ranging from 0.79 to 0.82 - a consistent structural relationship.

MSTB vs. HEQQ - Sectors Allocation Comparison

Sectors	MSTB	HEQQ
Technology	36.1%	53.8%
Financial Services	11.9%	0.6%
Communication Services	10.9%	15.3%
Consumer Cyclical	10.1%	12.3%
Healthcare	8.4%	4.7%
Industrials	8.2%	3.0%
Consumer Defensive	4.9%	6.9%
Energy	3.5%	0.7%
Utilities	2.3%	1.8%
Real Estate	1.9%	0.2%
Basic Materials	1.8%	0.7%

Return for Risk

MSTB vs. HEQQ — 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

HEQQ

HEQQ Risk / Return Rank: 59
HEQQ Sharpe Ratio Rank: 64
HEQQ Sortino Ratio Rank: 65
HEQQ Omega Ratio Rank: 69
HEQQ Calmar Ratio Rank: 47
HEQQ Martin Ratio Rank: 53

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. HEQQ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LHA Market State Tactical Beta ETF (MSTB) and JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF (HEQQ). 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	HEQQ	Difference
Sharpe ratio: Return per unit of total volatility	2.00	2.11	-0.11
Sortino ratio: Return per unit of downside risk	2.75	2.96	-0.21
Omega ratio: Gain probability vs. loss probability	1.37	1.41	-0.04
Calmar ratio: Return relative to maximum drawdown	2.46	2.25	+0.21
Martin ratio: Return relative to average drawdown	9.32	8.86	+0.46
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. HEQQ - Sharpe Ratio Comparison

The current MSTB Sharpe Ratio is 2.00, which is comparable to the HEQQ Sharpe Ratio of 2.11. The chart below compares the historical Sharpe Ratios of MSTB and HEQQ, 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	HEQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.00	2.11	-0.11
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	1.74	-0.91

Drawdowns

MSTB vs. HEQQ - Drawdown Comparison

The maximum MSTB drawdown since its inception was -25.64%, which is greater than HEQQ's maximum drawdown of -7.64%. Use the drawdown chart below to compare losses from any high point for MSTB and HEQQ.

Drawdown Indicators

	MSTB	HEQQ	Difference
Max Drawdown Largest peak-to-trough decline	-25.64%	-7.64%	-18.00%
Max Drawdown (1Y) Largest decline over 1 year	-8.31%	-7.64%	-0.67%
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%	-0.55%	-0.05%
Average Drawdown Average peak-to-trough decline	-7.18%	-1.11%	-6.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.19%	1.93%	+0.26%

Volatility

MSTB vs. HEQQ - Volatility Comparison

LHA Market State Tactical Beta ETF (MSTB) has a higher volatility of 2.56% compared to JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF (HEQQ) at 1.33%. This indicates that MSTB's price experiences larger fluctuations and is considered to be riskier than HEQQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTB	HEQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.56%	1.33%	+1.23%
Volatility (6M) Calculated over the trailing 6-month period	7.43%	6.63%	+0.80%
Volatility (1Y) Calculated over the trailing 1-year period	10.21%	8.14%	+2.07%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.97%	10.89%	+3.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.84%	10.89%	+2.95%

MSTB vs. HEQQ - Expense Ratio Comparison

MSTB has a 1.40% expense ratio, which is higher than HEQQ's 0.50% expense ratio.

Dividends

MSTB vs. HEQQ - Dividend Comparison

MSTB's dividend yield for the trailing twelve months is around 0.38%, more than HEQQ's 0.19% yield.

Position	TTM	2025	2024	2023	2022	2021	2020
HEQQ JPMorgan Nasdaq Hedged Equity Laddered Overlay ETF	0.19%	0.19%	0.00%	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 HEQQ in my portfolio?

MSTB and HEQQ have a correlation of 0.82, 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 HEQQ?

MSTB has higher volatility (2.56%) compared to HEQQ (1.33%). In terms of maximum drawdown, MSTB dropped -25.64% vs HEQQ's -7.64%.

Which ETF is better, MSTB or HEQQ?

On 1-year performance, MSTB leads with 20.33% vs 17.08% for HEQQ. On fees, HEQQ is cheaper at 0.50% per year. On volatility, HEQQ has been the lower-risk option at 1.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTB or HEQQ?

Over the 1-year period, MSTB has performed better with a 20.33% return vs 17.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTB or HEQQ?

HEQQ is cheaper with a 0.50% expense ratio, compared with 1.40% for MSTB.

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

MSTB has the higher dividend yield at 0.38%, compared with 0.19% for HEQQ.

What is the main difference between MSTB and HEQQ?

MSTB is categorized as Equity Hedged, while HEQQ is Nasdaq-100. They also come from different issuers: Little Harbor Advisors and JPMorgan. Their fees differ too: 1.40% for MSTB and 0.50% for HEQQ.

Which has better risk-adjusted returns?

HEQQ currently has the higher Sharpe Ratio (2.11 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.