MSTB vs. PHDG

Last updated Jun 4, 2026

MSTB (LHA Market State Tactical Beta ETF) and PHDG (Invesco S&P 500 Downside Hedged ETF) are both Equity Hedged funds - MSTB tracks the S&P 500® Index while PHDG tracks the S&P 500 Dynamic VEQTOR Index. Both are passively managed. Over the past 5 years, MSTB returned 8.55%/yr vs 5.45%/yr for PHDG. A 0.70 correlation means they provide meaningful diversification when combined. MSTB charges 1.40%/yr vs 0.39%/yr for PHDG.

Performance

MSTB vs. PHDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in LHA Market State Tactical Beta ETF (MSTB) and Invesco S&P 500 Downside Hedged ETF (PHDG). 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 lower than PHDG's 13.79% return.

MSTB

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

PHDG

• 1D: -0.63%
• 1M: 4.88%
• YTD: 13.79%
• 6M: 11.91%
• 1Y: 25.21%
• 3Y*: 10.77%
• 5Y*: 5.45%
• 10Y*: 7.22%

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

MSTB vs. PHDG - 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%	9.45%
PHDG Invesco S&P 500 Downside Hedged ETF	13.79%	2.72%	10.95%	8.18%	-14.09%	15.67%	0.38%

Correlation

The correlation between MSTB and PHDG is 0.75, 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	0.75
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.71
Correlation (All Time) Calculated using the full available price history since Oct 1, 2020	0.70

The correlation between MSTB and PHDG has been stable across timeframes, ranging from 0.68 to 0.75 - a consistent structural relationship.

MSTB vs. PHDG - Sectors Allocation Comparison

Sectors	MSTB	PHDG
Technology	36.1%	35.1%
Financial Services	11.9%	11.9%
Communication Services	10.9%	11.0%
Consumer Cyclical	10.1%	10.1%
Healthcare	8.4%	8.7%
Industrials	8.2%	8.3%
Consumer Defensive	4.9%	5.0%
Energy	3.5%	3.6%
Utilities	2.3%	2.4%
Real Estate	1.9%	1.9%
Basic Materials	1.8%	1.8%

Return for Risk

MSTB vs. PHDG — 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

PHDG

PHDG Risk / Return Rank: 90
PHDG Sharpe Ratio Rank: 86
PHDG Sortino Ratio Rank: 90
PHDG Omega Ratio Rank: 85
PHDG Calmar Ratio Rank: 94
PHDG Martin Ratio Rank: 94

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. PHDG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for LHA Market State Tactical Beta ETF (MSTB) and Invesco S&P 500 Downside Hedged ETF (PHDG). 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	PHDG	Difference
Sharpe ratio: Return per unit of total volatility	2.00	2.88	-0.87
Sortino ratio: Return per unit of downside risk	2.75	4.23	-1.48
Omega ratio: Gain probability vs. loss probability	1.37	1.53	-0.16
Calmar ratio: Return relative to maximum drawdown	2.46	7.19	-4.73
Martin ratio: Return relative to average drawdown	9.32	26.70	-17.38
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. PHDG - Sharpe Ratio Comparison

The current MSTB Sharpe Ratio is 2.00, which is lower than the PHDG Sharpe Ratio of 2.88. The chart below compares the historical Sharpe Ratios of MSTB and PHDG, 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	PHDG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.00	2.88	-0.87
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.50	+0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.61	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.83	0.53	+0.30

Drawdowns

MSTB vs. PHDG - Drawdown Comparison

The maximum MSTB drawdown since its inception was -25.64%, which is greater than PHDG's maximum drawdown of -17.70%. Use the drawdown chart below to compare losses from any high point for MSTB and PHDG.

Drawdown Indicators

	MSTB	PHDG	Difference
Max Drawdown Largest peak-to-trough decline	-25.64%	-17.70%	-7.94%
Max Drawdown (1Y) Largest decline over 1 year	-8.31%	-3.52%	-4.79%
Max Drawdown (3Y) Largest decline over 3 years	-10.81%	-14.78%	+3.97%
Max Drawdown (5Y) Largest decline over 5 years	-25.64%	-17.06%	-8.58%
Max Drawdown (10Y) Largest decline over 10 years	—	-17.06%	—
Current Drawdown Current decline from peak	-0.60%	-0.87%	+0.27%
Average Drawdown Average peak-to-trough decline	-7.18%	-6.25%	-0.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.19%	0.95%	+1.24%

Volatility

MSTB vs. PHDG - Volatility Comparison

The current volatility for LHA Market State Tactical Beta ETF (MSTB) is 2.56%, while Invesco S&P 500 Downside Hedged ETF (PHDG) has a volatility of 3.07%. This indicates that MSTB experiences smaller price fluctuations and is considered to be less risky than PHDG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSTB	PHDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.56%	3.07%	-0.51%
Volatility (6M) Calculated over the trailing 6-month period	7.43%	6.64%	+0.79%
Volatility (1Y) Calculated over the trailing 1-year period	10.21%	8.81%	+1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.97%	10.92%	+3.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.84%	11.92%	+1.92%

MSTB vs. PHDG - Expense Ratio Comparison

MSTB has a 1.40% expense ratio, which is higher than PHDG's 0.39% expense ratio.

Dividends

MSTB vs. PHDG - Dividend Comparison

MSTB's dividend yield for the trailing twelve months is around 0.38%, less than PHDG's 1.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSTB LHA Market State Tactical Beta ETF	0.38%	0.41%	0.95%	0.16%	1.34%	2.20%	1.78%	0.00%	0.00%	0.00%	0.00%	0.00%
PHDG Invesco S&P 500 Downside Hedged ETF	1.86%	2.10%	1.94%	1.93%	1.35%	0.44%	0.63%	1.80%	1.56%	1.83%	2.29%	1.64%

Frequently Asked Questions

Can I hold both MSTB and PHDG in my portfolio?

MSTB and PHDG have a correlation of 0.75, 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 PHDG?

PHDG has higher volatility (3.07%) compared to MSTB (2.56%). In terms of maximum drawdown, MSTB dropped -25.64% vs PHDG's -17.70%.

Which ETF is better, MSTB or PHDG?

On 5-year performance, MSTB leads with 8.55% vs 5.45% for PHDG. On fees, PHDG is cheaper at 0.39% per year. On volatility, MSTB has been the lower-risk option at 2.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MSTB or PHDG?

Over the 5-year period, MSTB has performed better with a 8.55% return vs 5.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MSTB or PHDG?

PHDG is cheaper with a 0.39% expense ratio, compared with 1.40% for MSTB.

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

PHDG has the higher dividend yield at 1.86%, compared with 0.38% for MSTB.

What is the main difference between MSTB and PHDG?

MSTB tracks S&P 500® Index, while PHDG tracks S&P 500 Dynamic VEQTOR Index. They also come from different issuers: Little Harbor Advisors and Invesco. Their fees differ too: 1.40% for MSTB and 0.39% for PHDG.

Which has better risk-adjusted returns?

PHDG currently has the higher Sharpe Ratio (2.88 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.