HDG vs VTI
ProShares Hedge Replication ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | HDG | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.03% | |
| AUM | $22M | $666.9B | |
| Dividend Yield | 2.38% | 1.07% | |
| Holdings | 1,988 | 3,543 | |
| YTD Return | +7.40% | +13.12% | |
| 1Y Return | +11.04% | +20.82% | |
| 3Y Return (annualized) | +7.35% | +21.43% | |
| 5Y Return (annualized) | +3.27% | +11.84% | |
| Volatility (annualized) | 5.7% | 15.3% | |
| Max Drawdown | -15.3% | -56.6% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jul 12, 2011 | May 24, 2001 |
HDG vs VTI Performance
ProShares Hedge Replication ETF (HDG) is a ETF from ProShares and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HDG returned +11.04% while VTI returned +20.82%. Year to date, HDG is up 7.40% versus a gain of 13.12% for VTI.
Over three years, HDG compounded at +7.35% per year against +21.43% for VTI; over five years the annualized figures are +3.27% and +11.84% respectively. Across the full 15-year window we track, VTI has the edge at +8.08% annualized vs +2.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI 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 -56.6% for VTI. 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 0.89. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HDG charges 0.95% per year while VTI 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 2.38% against 1.07% for VTI.
Holdings Overlap
HDG and VTI share 1428 holdings out of 3329 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HDG or VTI?
HDG has an expense ratio of 0.95% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $92 per year of difference.
Which performed better, HDG or VTI?
Over the past year HDG returned +11.04% vs +20.82% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (15 years), HDG annualized +2.79% vs +8.08% for VTI. Past performance does not guarantee future results.
Which is riskier, HDG or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 5.7% for HDG. Worst drawdown: HDG -15.3% vs VTI -56.6%.
Should I hold both HDG and VTI?
HDG and VTI have a monthly-return correlation of 0.89, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HDG and VTI?
HDG and VTI share 1428 common holdings with a 0.3% weight overlap. Combined, they hold 3329 unique securities.
Which pays a higher dividend, HDG or VTI?
HDG yields 2.38% while VTI yields 1.07%, so HDG currently pays the higher dividend yield.
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