SHDG vs. HEQT

Last updated Jun 23, 2026

SHDG (Soundwatch Hedged Equity ETF) and HEQT (Simplify Hedged Equity ETF) are both exchange-traded funds - SHDG is a Options Trading fund actively managed by SoundWatch Capital, while HEQT is a Equity Hedged fund actively managed by Simplify. Both are actively managed. Over the past 3 years, SHDG returned 12.13%/yr vs 13.21%/yr for HEQT. Their correlation of 0.89 suggests significant overlap in exposure. SHDG charges 0.53%/yr vs 0.43%/yr for HEQT.

Performance

SHDG vs. HEQT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Soundwatch Hedged Equity ETF (SHDG) and Simplify Hedged Equity ETF (HEQT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SHDG achieves a 1.16% return, which is significantly lower than HEQT's 4.76% return.

SHDG

• 1D: 0.02%
• 1M: 0.58%
• YTD: 1.16%
• 6M: 0.76%
• 1Y: 12.02%
• 3Y*: 12.13%
• 5Y*: —
• 10Y*: —

HEQT

• 1D: -0.21%
• 1M: 0.57%
• YTD: 4.76%
• 6M: 4.67%
• 1Y: 14.00%
• 3Y*: 13.21%
• 5Y*: —
• 10Y*: —

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

SHDG vs. HEQT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
SHDG Soundwatch Hedged Equity ETF	1.16%	11.46%	19.66%	17.84%	2.55%
HEQT Simplify Hedged Equity ETF	4.76%	10.08%	18.30%	16.61%	1.27%

Correlation

The correlation between SHDG and HEQT 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	0.88
Correlation (All Time) Calculated using the full available price history since Oct 24, 2022	0.89

The correlation between SHDG and HEQT has been stable across timeframes, ranging from 0.86 to 0.89 - a consistent structural relationship.

Return for Risk

SHDG vs. HEQT — Risk / Return Rank

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

SHDG

SHDG Risk / Return Rank: 44
SHDG Sharpe Ratio Rank: 46
SHDG Sortino Ratio Rank: 44
SHDG Omega Ratio Rank: 50
SHDG Calmar Ratio Rank: 38
SHDG Martin Ratio Rank: 43

HEQT

HEQT Risk / Return Rank: 68
HEQT Sharpe Ratio Rank: 68
HEQT Sortino Ratio Rank: 69
HEQT Omega Ratio Rank: 77
HEQT Calmar Ratio Rank: 57
HEQT Martin Ratio Rank: 70

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.

SHDG vs. HEQT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Soundwatch Hedged Equity ETF (SHDG) and Simplify Hedged Equity ETF (HEQT). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	SHDG	HEQT	Difference
Sharpe ratio: Return per unit of total volatility	1.57	2.13	-0.56
Sortino ratio: Return per unit of downside risk	2.16	3.00	-0.84
Omega ratio: Gain probability vs. loss probability	1.31	1.43	-0.13
Calmar ratio: Return relative to maximum drawdown	1.82	2.76	-0.94
Martin ratio: Return relative to average drawdown	6.74	12.50	-5.76

SHDG vs. HEQT - Sharpe Ratio Comparison

The current SHDG Sharpe Ratio is 1.57, which is comparable to the HEQT Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of SHDG and HEQT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

SHDG vs. HEQT - Drawdown Comparison

The maximum SHDG drawdown since its inception was -15.82%, which is greater than HEQT's maximum drawdown of -11.51%. Use the drawdown chart below to compare losses from any high point for SHDG and HEQT.

Drawdown Indicators

	SHDG	HEQT	Difference
Max Drawdown Largest peak-to-trough decline	-15.82%	-11.51%	-4.31%
Max Drawdown (1Y) Largest decline over 1 year	-6.62%	-5.09%	-1.53%
Max Drawdown (3Y) Largest decline over 3 years	-15.82%	-10.57%	-5.25%
Current Drawdown Current decline from peak	-0.48%	-0.42%	-0.06%
Average Drawdown Average peak-to-trough decline	-1.72%	-2.77%	+1.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.79%	1.12%	+0.67%

Volatility

SHDG vs. HEQT - Volatility Comparison

The current volatility for Soundwatch Hedged Equity ETF (SHDG) is 0.64%, while Simplify Hedged Equity ETF (HEQT) has a volatility of 1.92%. This indicates that SHDG experiences smaller price fluctuations and is considered to be less risky than HEQT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SHDG	HEQT	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.64%	1.92%	-1.28%
Volatility (6M) Calculated over the trailing 6-month period	5.40%	5.47%	-0.07%
Volatility (1Y) Calculated over the trailing 1-year period	7.70%	6.61%	+1.09%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	10.91%	8.47%	+2.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	10.91%	8.47%	+2.44%

SHDG vs. HEQT - Expense Ratio Comparison

SHDG has a 0.53% expense ratio, which is higher than HEQT's 0.43% expense ratio.

Dividends

SHDG vs. HEQT - Dividend Comparison

SHDG's dividend yield for the trailing twelve months is around 0.49%, less than HEQT's 1.20% yield.

Position	TTM	2025	2024	2023	2022	2021
HEQT Simplify Hedged Equity ETF	1.20%	1.19%	1.29%	4.10%	3.94%	0.27%
SHDG Soundwatch Hedged Equity ETF	0.49%	0.49%	0.62%	1.24%	0.90%	0.00%

Frequently Asked Questions

Can I hold both SHDG and HEQT in my portfolio?

SHDG and HEQT 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, SHDG or HEQT?

HEQT has higher volatility (1.92%) compared to SHDG (0.64%). In terms of maximum drawdown, SHDG dropped -15.82% vs HEQT's -11.51%.

Which ETF is better, SHDG or HEQT?

On 3-year performance, HEQT leads with 13.21% vs 12.13% for SHDG. On fees, HEQT is cheaper at 0.43% per year. On volatility, SHDG has been the lower-risk option at 0.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SHDG or HEQT?

Over the 3-year period, HEQT has performed better with a 13.21% return vs 12.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SHDG or HEQT?

HEQT is cheaper with a 0.43% expense ratio, compared with 0.53% for SHDG.

Which ETF pays a higher dividend yield, SHDG or HEQT?

HEQT has the higher dividend yield at 1.20%, compared with 0.49% for SHDG.

What is the main difference between SHDG and HEQT?

SHDG is categorized as Options Trading, while HEQT is Equity Hedged. They also come from different issuers: SoundWatch Capital and Simplify. Their fees differ too: 0.53% for SHDG and 0.43% for HEQT.

Which has better risk-adjusted returns?

HEQT currently has the higher Sharpe Ratio (2.13 vs 1.57), 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.