HDG vs VYM
ProShares Hedge Replication ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. HDG offers more diversification with 1,988 holdings.
Side-by-Side Comparison
| Metric | HDG | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.95% | 0.04% | |
| AUM | $22M | $81.6B | |
| Dividend Yield | 2.38% | 2.24% | |
| Holdings | 1,988 | 616 | |
| YTD Return | +7.40% | +15.25% | |
| 1Y Return | +11.04% | +22.18% | |
| 3Y Return (annualized) | +7.35% | +18.83% | |
| 5Y Return (annualized) | +3.27% | +12.09% | |
| Volatility (annualized) | 5.7% | 14.6% | |
| Max Drawdown | -15.3% | -58.8% | |
| Fund Family | ProShares | Vanguard (US) | |
| Category | Alternative | Equity | |
| Inception | Jul 12, 2011 | Nov 10, 2006 |
HDG vs VYM Performance
ProShares Hedge Replication ETF (HDG) is a ETF from ProShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HDG returned +11.04% while VYM returned +22.18%. Year to date, HDG is up 7.40% versus a gain of 15.25% for VYM.
Over three years, HDG compounded at +7.35% per year against +18.83% for VYM; over five years the annualized figures are +3.27% and +12.09% respectively. Across the full 15-year window we track, VYM has the edge at +7.03% annualized vs +2.79%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HDG charges 0.95% per year while VYM charges 0.04%. On a $10,000 position that is $95 vs $4 annually, a gap of $91 per year that compounds over a long holding period. On income, HDG currently yields 2.38% against 2.24% for VYM.
Holdings Overlap
HDG and VYM share 182 holdings out of 2391 unique holdings combined, representing a 2.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HDG or VYM?
HDG has an expense ratio of 0.95% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $91 per year of difference.
Which performed better, HDG or VYM?
Over the past year HDG returned +11.04% vs +22.18% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (15 years), HDG annualized +2.79% vs +7.03% for VYM. Past performance does not guarantee future results.
Which is riskier, HDG or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.7% for HDG. Worst drawdown: HDG -15.3% vs VYM -58.8%.
Should I hold both HDG and VYM?
HDG and VYM have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HDG and VYM?
HDG and VYM share 182 common holdings with a 2.5% weight overlap. Combined, they hold 2391 unique securities.
Which pays a higher dividend, HDG or VYM?
HDG yields 2.38% while VYM yields 2.24%, so HDG currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.