HDGE vs SCHD

HDGE vs SCHD
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Quick Verdict

SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.

Lower Fees: SCHDHigher Returns: SCHDMore Diversified: SCHD

Side-by-Side Comparison

MetricHDGESCHDWinner
Expense Ratio3.62%0.06%
AUM$51M$108.7B
Dividend Yield3.70%3.13%
Holdings64104
YTD Return-13.31%+27.67%
1Y Return-9.13%+29.56%
3Y Return (annualized)-10.30%+16.53%
5Y Return (annualized)-8.41%+9.95%
Volatility (annualized)20.9%13.6%
Max Drawdown-94.7%-33.4%
Fund FamilyAdvisor SharesCharles Schwab Asset Management
CategoryAlternativeEquity
InceptionJan 26, 2011Oct 20, 2011

HDGE vs SCHD Performance

AdvisorShares Ranger Equity Bear ETF (HDGE) is a ETF from Advisor Shares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year HDGE returned -9.13% while SCHD returned +29.56%. Year to date, HDGE is down 13.31% versus a gain of 27.67% for SCHD.

Over three years, HDGE compounded at -10.30% per year against +16.53% for SCHD; over five years the annualized figures are -8.41% and +9.95% respectively. Across the full 15-year window we track, SCHD has the edge at +11.55% annualized vs -16.16%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

HDGE has been the more volatile fund, with annualized monthly volatility of 20.9% compared with 13.6% for SCHD. 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 -94.7% for HDGE and -33.4% for SCHD. 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 -0.71. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HDGE charges 3.62% per year while SCHD charges 0.06%. On a $10,000 position that is $362 vs $6 annually, a gap of $356 per year that compounds over a long holding period. On income, HDGE currently yields 3.70% against 3.13% for SCHD.

Holdings Overlap

0.0%overlap

HDGE and SCHD share 5 holdings out of 157 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in HDGEWeight in SCHDDifference
PAYX-1.79%0.97%2.76%
ARES-1.60%0.72%2.32%
OZK-1.99%0.13%2.12%
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Frequently Asked Questions

Which is cheaper, HDGE or SCHD?

HDGE has an expense ratio of 3.62% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $356 per year of difference.

Which performed better, HDGE or SCHD?

Over the past year HDGE returned -9.13% vs +29.56% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (15 years), HDGE annualized -16.16% vs +11.55% for SCHD. Past performance does not guarantee future results.

Which is riskier, HDGE or SCHD?

HDGE has been the more volatile fund at 20.9% annualized versus 13.6% for SCHD. Worst drawdown: HDGE -94.7% vs SCHD -33.4%.

Should I hold both HDGE and SCHD?

HDGE and SCHD have a monthly-return correlation of -0.71, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HDGE and SCHD?

HDGE and SCHD share 5 common holdings with a 0.0% weight overlap. Combined, they hold 157 unique securities.

Which pays a higher dividend, HDGE or SCHD?

HDGE yields 3.70% while SCHD yields 3.13%, so HDGE currently pays the higher dividend yield.

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