HDG vs VOO

Quick Verdict

VOO has a lower expense ratio. VOO delivered stronger 1-year returns. HDG offers more diversification with 1963 holdings.

Lower Fees: VOOHigher Returns: VOOMore Diversified: HDG

Side-by-Side Comparison

MetricHDGVOOWinner
Expense Ratio0.95%0.03%
AUM$22M$979.0B
Dividend Yield2.36%1.09%
Holdings1,988509
YTD Return+7.27%+13.53%
1Y Return+12.72%+23.65%
3Y Return (annualized)+7.03%+21.27%
5Y Return (annualized)+3.31%+13.52%
Volatility (annualized)5.7%14.1%
Max Drawdown-15.3%-34.3%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionJul 12, 2011Sep 7, 2010

HDG vs VOO Performance

ProShares Hedge Replication ETF (HDG) is a ETF from ProShares and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year HDG returned +12.72% while VOO returned +23.65%. Year to date, HDG is up 7.27% versus a gain of 13.53% for VOO.

Over three years, HDG compounded at +7.03% per year against +21.27% for VOO; over five years the annualized figures are +3.31% and +13.52% respectively. Across the full 15-year window we track, VOO has the edge at +13.57% annualized vs +2.79%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VOO has been the more volatile fund, with annualized monthly volatility of 14.1% 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 -34.3% for VOO. 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 VOO charges 0.03%. On a $10,000 position that is $95 vs $3 annually, a gap of $92 per year that compounds over a long holding period. On income, HDG currently yields 2.36% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

HDG and VOO share 3 holdings out of 2465 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HDGWeight in VOODifference
NEM0.00%0.15%0.15%
XEL0.00%0.08%0.08%
BLDR0.02%0.01%0.01%

Frequently Asked Questions

Which is cheaper, HDG or VOO?

HDG has an expense ratio of 0.95% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, HDG or VOO?

Over the past year HDG returned +12.72% vs +23.65% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (15 years), HDG annualized +2.79% vs +13.57% for VOO. Past performance does not guarantee future results.

Which is riskier, HDG or VOO?

VOO has been the more volatile fund at 14.1% annualized versus 5.7% for HDG. Worst drawdown: HDG -15.3% vs VOO -34.3%.

Should I hold both HDG and VOO?

HDG and VOO 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 VOO?

HDG and VOO share 3 common holdings with a 0.0% weight overlap. Combined, they hold 2465 unique securities.

Which pays a higher dividend, HDG or VOO?

HDG yields 2.36% while VOO yields 1.09%, so HDG currently pays the higher dividend yield.

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