QAI vs. HDG

Last updated Jun 4, 2026

QAI (IQ Hedge Multi-Strategy Tracker ETF) and HDG (ProShares Hedge Replication) are both Long-Short funds - QAI tracks the IQ Hedge Multi-Strategy Index while HDG tracks the Merrill Lynch Factor Model - Exchange Series. Both are passively managed. Over the past 10 years, QAI returned 3.93%/yr vs 3.91%/yr for HDG. A 0.66 correlation means they provide meaningful diversification when combined. QAI charges 0.79%/yr vs 0.95%/yr for HDG.

Performance

QAI vs. HDG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ Hedge Multi-Strategy Tracker ETF (QAI) and ProShares Hedge Replication (HDG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, QAI achieves a 9.07% return, which is significantly higher than HDG's 6.40% return. Both investments have delivered pretty close results over the past 10 years, with QAI having a 3.93% annualized return and HDG not far behind at 3.91%.

QAI

• 1D: -0.35%
• 1M: 2.48%
• YTD: 9.07%
• 6M: 9.63%
• 1Y: 16.35%
• 3Y*: 10.28%
• 5Y*: 4.57%
• 10Y*: 3.93%

HDG

• 1D: -0.37%
• 1M: 2.07%
• YTD: 6.40%
• 6M: 7.00%
• 1Y: 13.22%
• 3Y*: 7.56%
• 5Y*: 3.02%
• 10Y*: 3.91%

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

QAI vs. HDG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
QAI IQ Hedge Multi-Strategy Tracker ETF	9.07%	8.29%	6.67%	10.07%	-8.68%	-0.16%	5.73%	8.68%	-3.32%	6.17%
HDG ProShares Hedge Replication	6.40%	7.18%	5.12%	7.14%	-8.48%	2.97%	7.45%	9.58%	-4.52%	5.59%

Correlation

The correlation between QAI and HDG is 0.86, 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	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.76
Correlation (10Y) Calculated over the trailing 10-year period	0.71
Correlation (All Time) Calculated using the full available price history since Jul 15, 2011	0.66

The correlation between QAI and HDG shifts across timeframes, from 0.66 (all time) to 0.86 (1 year), reflecting how their relationship changes across market environments.

QAI vs. HDG - Sectors Allocation Comparison

Sectors	QAI	HDG
Technology	21.9%	17.0%
Financial Services	19.5%	15.8%
Industrials	13.6%	17.7%
Communication Services	11.2%	2.4%
Consumer Cyclical	7.3%	8.4%
Healthcare	7.1%	16.5%
Basic Materials	5.3%	4.8%
Utilities	3.8%	2.9%
Energy	3.7%	6.1%
Consumer Defensive	3.7%	2.4%
Real Estate	2.9%	6.1%

Return for Risk

QAI vs. HDG — Risk / Return Rank

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

QAI

QAI Risk / Return Rank: 85
QAI Sharpe Ratio Rank: 83
QAI Sortino Ratio Rank: 85
QAI Omega Ratio Rank: 87
QAI Calmar Ratio Rank: 82
QAI Martin Ratio Rank: 86

HDG

HDG Risk / Return Rank: 73
HDG Sharpe Ratio Rank: 72
HDG Sortino Ratio Rank: 77
HDG Omega Ratio Rank: 76
HDG Calmar Ratio Rank: 67
HDG Martin Ratio Rank: 73

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.

QAI vs. HDG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ Hedge Multi-Strategy Tracker ETF (QAI) 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.

	QAI	HDG	Difference
Sharpe ratio: Return per unit of total volatility	2.74	2.36	+0.39
Sortino ratio: Return per unit of downside risk	3.91	3.50	+0.41
Omega ratio: Gain probability vs. loss probability	1.55	1.46	+0.09
Calmar ratio: Return relative to maximum drawdown	4.42	3.35	+1.08
Martin ratio: Return relative to average drawdown	18.26	13.81	+4.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

QAI vs. HDG - Sharpe Ratio Comparison

The current QAI Sharpe Ratio is 2.74, which is comparable to the HDG Sharpe Ratio of 2.36. The chart below compares the historical Sharpe Ratios of QAI and HDG, 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

	QAI	HDG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.74	2.36	+0.39
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.70	0.42	+0.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.64	0.55	+0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.57	0.43	+0.14

Drawdowns

QAI vs. HDG - Drawdown Comparison

The maximum QAI drawdown since its inception was -14.95%, roughly equal to the maximum HDG drawdown of -15.31%. Use the drawdown chart below to compare losses from any high point for QAI and HDG.

Drawdown Indicators

	QAI	HDG	Difference
Max Drawdown Largest peak-to-trough decline	-14.95%	-15.31%	+0.36%
Max Drawdown (1Y) Largest decline over 1 year	-3.71%	-3.97%	+0.26%
Max Drawdown (3Y) Largest decline over 3 years	-7.78%	-7.20%	-0.58%
Max Drawdown (5Y) Largest decline over 5 years	-14.32%	-15.31%	+0.99%
Max Drawdown (10Y) Largest decline over 10 years	-14.95%	-15.31%	+0.36%
Current Drawdown Current decline from peak	-0.35%	-0.37%	+0.02%
Average Drawdown Average peak-to-trough decline	-2.57%	-2.77%	+0.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.90%	0.96%	-0.06%

Volatility

QAI vs. HDG - Volatility Comparison

IQ Hedge Multi-Strategy Tracker ETF (QAI) and ProShares Hedge Replication (HDG) have volatilities of 2.06% and 2.06%, 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

	QAI	HDG	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.06%	2.06%	0.00%
Volatility (6M) Calculated over the trailing 6-month period	4.91%	4.58%	+0.33%
Volatility (1Y) Calculated over the trailing 1-year period	5.99%	5.64%	+0.35%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.55%	7.15%	-0.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.17%	7.11%	-0.94%

QAI vs. HDG - Expense Ratio Comparison

QAI has a 0.79% expense ratio, which is lower than HDG's 0.95% expense ratio.

Dividends

QAI vs. HDG - Dividend Comparison

QAI's dividend yield for the trailing twelve months is around 1.38%, less than HDG's 2.35% yield.

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%
QAI IQ Hedge Multi-Strategy Tracker ETF	1.38%	1.50%	2.22%	4.08%	2.00%	0.28%	1.98%	1.91%	1.90%	0.00%	0.00%	0.48%

Frequently Asked Questions

Can I hold both QAI and HDG in my portfolio?

QAI and HDG have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, QAI or HDG?

HDG has higher volatility (2.06%) compared to QAI (2.06%). In terms of maximum drawdown, QAI dropped -14.95% vs HDG's -15.31%.

Which ETF is better, QAI or HDG?

On 10-year performance, QAI leads with 3.93% vs 3.91% for HDG. On fees, QAI is cheaper at 0.79% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, QAI or HDG?

Over the 10-year period, QAI has performed better with a 3.93% return vs 3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, QAI or HDG?

QAI is cheaper with a 0.79% expense ratio, compared with 0.95% for HDG.

Which ETF pays a higher dividend yield, QAI or HDG?

HDG has the higher dividend yield at 2.35%, compared with 1.38% for QAI.

What is the main difference between QAI and HDG?

QAI tracks IQ Hedge Multi-Strategy 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: 0.79% for QAI and 0.95% for HDG.

Which has better risk-adjusted returns?

QAI currently has the higher Sharpe Ratio (2.74 vs 2.36), 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.