HDGE vs SPY

HDGE vs SPY
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Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricHDGESPYWinner
Expense Ratio3.62%0.09%
AUM$51M$821.1B
Dividend Yield3.70%1.01%
Holdings64505
YTD Return-13.31%+13.47%
1Y Return-9.13%+20.57%
3Y Return (annualized)-10.30%+21.83%
5Y Return (annualized)-8.41%+12.88%
Volatility (annualized)20.9%15.3%
Max Drawdown-94.7%-56.5%
Fund FamilyAdvisor SharesState Street Investment Management
CategoryAlternativeEquity
InceptionJan 26, 2011Jan 22, 1993

HDGE vs SPY Performance

AdvisorShares Ranger Equity Bear ETF (HDGE) is a ETF from Advisor Shares and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HDGE returned -9.13% while SPY returned +20.57%. Year to date, HDGE is down 13.31% versus a gain of 13.47% for SPY.

Over three years, HDGE compounded at -10.30% per year against +21.83% for SPY; over five years the annualized figures are -8.41% and +12.88% respectively. Across the full 16-year window we track, SPY has the edge at +8.83% 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 15.3% for SPY. 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 -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 -0.79. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

HDGE charges 3.62% per year while SPY charges 0.09%. On a $10,000 position that is $362 vs $9 annually, a gap of $353 per year that compounds over a long holding period. On income, HDGE currently yields 3.70% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

HDGE and SPY share 20 holdings out of 546 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 SPYDifference
APP-0.93%0.17%1.10%
WFC-1.36%0.41%1.77%
DASH-1.09%0.12%1.21%
CRMProProPro
SYFProProPro
BLDRProProPro
AREProProPro
ORLYProProPro
CTSHProProPro
ARESProProPro
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Frequently Asked Questions

Which is cheaper, HDGE or SPY?

HDGE has an expense ratio of 3.62% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $353 per year of difference.

Which performed better, HDGE or SPY?

Over the past year HDGE returned -9.13% vs +20.57% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (16 years), HDGE annualized -16.16% vs +8.83% for SPY. Past performance does not guarantee future results.

Which is riskier, HDGE or SPY?

HDGE has been the more volatile fund at 20.9% annualized versus 15.3% for SPY. Worst drawdown: HDGE -94.7% vs SPY -56.5%.

Should I hold both HDGE and SPY?

HDGE and SPY have a monthly-return correlation of -0.79, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between HDGE and SPY?

HDGE and SPY share 20 common holdings with a 0.0% weight overlap. Combined, they hold 546 unique securities.

Which pays a higher dividend, HDGE or SPY?

HDGE yields 3.70% while SPY yields 1.01%, so HDGE currently pays the higher dividend yield.

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