HDG vs SPY
HDG vs SPY
ProShares Hedge Replication ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. HDG offers more diversification with 1963 holdings.
Side-by-Side Comparison
| Metric | HDG | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.09% | |
| AUM | $22M | $789.1B | |
| Dividend Yield | 2.36% | 1.01% | |
| Holdings | 1,988 | 505 | |
| YTD Return | +7.27% | +13.50% | |
| 1Y Return | +12.72% | +23.56% | |
| 3Y Return (annualized) | +7.03% | +21.17% | |
| 5Y Return (annualized) | +3.31% | +13.46% | |
| Volatility (annualized) | 5.7% | 15.3% | |
| Max Drawdown | -15.3% | -56.5% | |
| Fund Family | ProShares | State Street Investment Management | |
| Category | Alternative | Equity | |
| Inception | Jul 12, 2011 | Jan 22, 1993 |
HDG vs SPY Performance
ProShares Hedge Replication ETF (HDG) is a ETF from ProShares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HDG returned +12.72% while SPY returned +23.56%. Year to date, HDG is up 7.27% versus a gain of 13.50% for SPY.
Over three years, HDG compounded at +7.03% per year against +21.17% for SPY; over five years the annualized figures are +3.31% and +13.46% respectively. Across the full 15-year window we track, SPY has the edge at +8.85% annualized vs +2.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 5.7% for HDG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -15.3% for HDG and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HDG charges 0.95% per year while SPY charges 0.09%. On a $10,000 position that is $95 vs $9 annually, a gap of $86 per year that compounds over a long holding period. On income, HDG currently yields 2.36% against 1.01% for SPY.
Holdings Overlap
HDG and SPY share 3 holdings out of 2463 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HDG or SPY?
HDG has an expense ratio of 0.95% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $86 per year of difference.
Which performed better, HDG or SPY?
Over the past year HDG returned +12.72% vs +23.56% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (15 years), HDG annualized +2.79% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, HDG or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 5.7% for HDG. Worst drawdown: HDG -15.3% vs SPY -56.5%.
Should I hold both HDG and SPY?
HDG and SPY have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HDG and SPY?
HDG and SPY share 3 common holdings with a 0.0% weight overlap. Combined, they hold 2463 unique securities.
Which pays a higher dividend, HDG or SPY?
HDG yields 2.36% while SPY yields 1.01%, so HDG currently pays the higher dividend yield.
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