HEGD vs SPY

Quick Verdict

SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.

Lower Fees: SPYHigher Returns: SPYMore Diversified: SPY

Side-by-Side Comparison

MetricHEGDSPYWinner
Expense Ratio0.87%0.09%
AUM$707M$789.1B
Dividend Yield0.34%1.01%
Holdings13505
YTD Return+7.81%+13.79%
1Y Return+14.50%+23.66%
3Y Return (annualized)+13.75%+21.40%
5Y Return (annualized)+8.45%+13.37%
Volatility (annualized)8.7%15.3%
Max Drawdown-14.6%-56.5%
Fund FamilySwan Capital ManagementState Street Investment Management
CategoryEquityEquity
InceptionDec 22, 2020Jan 22, 1993

HEGD vs SPY Performance

Swan Hedged Equity US Large Cap ETF (HEGD) is a ETF from Swan Capital Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year HEGD returned +14.50% while SPY returned +23.66%. Year to date, HEGD is up 7.81% versus a gain of 13.79% for SPY.

Over three years, HEGD compounded at +13.75% per year against +21.40% for SPY; over five years the annualized figures are +8.45% and +13.37% respectively. Across the full 6-year window we track, HEGD has the edge at +9.74% annualized vs +8.85%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 8.7% for HEGD. 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 -14.6% for HEGD 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 0.95. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

HEGD charges 0.87% per year while SPY charges 0.09%. On a $10,000 position that is $87 vs $9 annually, a gap of $78 per year that compounds over a long holding period. On income, HEGD currently yields 0.34% against 1.01% for SPY.

Holdings Overlap

0.0%overlap

HEGD and SPY share 0 holdings out of 505 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, HEGD or SPY?

HEGD has an expense ratio of 0.87% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $78 per year of difference.

Which performed better, HEGD or SPY?

Over the past year HEGD returned +14.50% vs +23.66% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (6 years), HEGD annualized +9.74% vs +8.85% for SPY. Past performance does not guarantee future results.

Which is riskier, HEGD or SPY?

SPY has been the more volatile fund at 15.3% annualized versus 8.7% for HEGD. Worst drawdown: HEGD -14.6% vs SPY -56.5%.

Should I hold both HEGD and SPY?

HEGD and SPY have a monthly-return correlation of 0.95, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between HEGD and SPY?

HEGD and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.

Which pays a higher dividend, HEGD or SPY?

HEGD yields 0.34% while SPY yields 1.01%, so SPY currently pays the higher dividend yield.

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