SCEP vs. HEGD

Last updated Jun 3, 2026

SCEP (Sterling Capital Hedged Equity Premium Income ETF) and HEGD (Swan Hedged Equity US Large Cap ETF) are both Equity Hedged funds. SCEP is actively managed, while HEGD is passively managed. A 0.76 correlation means they provide meaningful diversification when combined. SCEP charges 0.65%/yr vs 0.88%/yr for HEGD.

Performance

SCEP vs. HEGD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Sterling Capital Hedged Equity Premium Income ETF (SCEP) 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, SCEP achieves a 3.86% return, which is significantly lower than HEGD's 7.52% return.

SCEP

• 1D: 0.16%
• 1M: 1.75%
• YTD: 3.86%
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

HEGD

• 1D: 0.30%
• 1M: 3.81%
• YTD: 7.52%
• 6M: 7.26%
• 1Y: 19.36%
• 3Y*: 14.89%
• 5Y*: 9.28%
• 10Y*: —

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

SCEP vs. HEGD - Yearly Performance Comparison

	2026 (YTD)	2025
SCEP Sterling Capital Hedged Equity Premium Income ETF	3.86%	-0.50%
HEGD Swan Hedged Equity US Large Cap ETF	7.52%	-1.11%

Correlation

The correlation between SCEP and HEGD is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Dec 12, 2025	0.76

Return for Risk

SCEP vs. HEGD — Risk / Return Rank

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

HEGD

HEGD Risk / Return Rank: 85
HEGD Sharpe Ratio Rank: 85
HEGD Sortino Ratio Rank: 88
HEGD Omega Ratio Rank: 84
HEGD Calmar Ratio Rank: 83
HEGD Martin Ratio Rank: 85

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.

SCEP vs. HEGD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sterling Capital Hedged Equity Premium Income ETF (SCEP) 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.

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

Sharpe Ratios by Period

	SCEP	HEGD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	—	2.81	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.99	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.75	1.08	-0.33

Drawdowns

SCEP vs. HEGD - Drawdown Comparison

The maximum SCEP drawdown since its inception was -7.25%, smaller than the maximum HEGD drawdown of -14.56%. Use the drawdown chart below to compare losses from any high point for SCEP and HEGD.

Drawdown Indicators

	SCEP	HEGD	Difference
Max Drawdown Largest peak-to-trough decline	-7.25%	-14.56%	+7.31%
Max Drawdown (1Y) Largest decline over 1 year	—	-4.39%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-8.14%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-14.56%	—
Current Drawdown Current decline from peak	-0.21%	0.00%	-0.21%
Average Drawdown Average peak-to-trough decline	-1.60%	-3.67%	+2.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.10%	—

Volatility

Volatility by Period

	SCEP	HEGD	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	2.26%	—
Volatility (6M) Calculated over the trailing 6-month period	—	4.91%	—
Volatility (1Y) Calculated over the trailing 1-year period	9.91%	6.92%	+2.99%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	9.91%	9.40%	+0.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	9.91%	9.35%	+0.56%

SCEP vs. HEGD - Expense Ratio Comparison

SCEP has a 0.65% expense ratio, which is lower than HEGD's 0.88% expense ratio.

Dividends

SCEP vs. HEGD - Dividend Comparison

SCEP's dividend yield for the trailing twelve months is around 3.24%, more than HEGD's 0.33% yield.

Position	TTM	2025	2024	2023	2022	2021
HEGD Swan Hedged Equity US Large Cap ETF	0.33%	0.36%	0.43%	0.39%	0.87%	0.31%
SCEP Sterling Capital Hedged Equity Premium Income ETF	3.24%	0.38%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SCEP and HEGD in my portfolio?

SCEP and HEGD have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SCEP or HEGD?

On fees, SCEP is cheaper at 0.65% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, SCEP or HEGD?

SCEP is cheaper with a 0.65% expense ratio, compared with 0.88% for HEGD.

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

SCEP has the higher dividend yield at 3.24%, compared with 0.33% for HEGD.

What is the main difference between SCEP and HEGD?

They also come from different issuers: Sterling Capital and Swan. Their fees differ too: 0.65% for SCEP and 0.88% for HEGD.