ETF Evaluator:
ProShares Hedge Replication ()
Follow This ETF
(as of Aug 26)
Best Performing in Multistrategy Over the Last Year
| 16.9% | Franklin Systematic Style Premia ETF (FLSP) |
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| 14.6% | Unlimited HFND Multi-Strgy Ret Trckr ETF (HFND) |
| 14.5% | SEI DBi Multi-Strategy Alternative ETF (QALT) |
| 12.4% | NYLI Hedge Multi-Strategy Tracker ETF (QAI) |
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ETF Details
ProShares Hedge Replication Overview
ProShares Hedge Replication (HDG) is a passively managed Alternative Multistrategy exchange-traded fund (ETF). ProShares launched the ETF in 2011.
The investment seeks investment results, before fees and expenses, that track the performance of the Merrill Lynch Factor Model-Exchange Series (the "benchmark").
The fund invests in financial instruments that ProShare Advisors believes, in combination, should track the performance of the benchmark. The benchmark is designed to provide the risk and return characteristics of the hedge fund asset class by targeting a high correlation with the HFRI Composite Index (the “HFRI”). It will the fund will invest at least 80% of its total assets in components of the Benchmark or in instruments with similar economic characteristics.
About ProShares Hedge Replication (HDG)
There are 2 members of the management team with an average tenure of 10.55 years: Michael Neches (2013) and Tarak Davé (2018). Management tenure is more important for actively managed ETFs than passive index ETFs.
The ETF has 2 primary benchmarks: S&P 500 (TR) (1970) index with a weighting of 100% and BofAML Factor Modl - Exch Series TR USD index with a weighting of 100%. ProShares Hedge Replication has 1973 securities in its portfolio. The top 10 holdings constitute 81.6% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.
ProShares Hedge Replication is part of the Alternative Strategies global asset class and is within the Alternative ETF group. ProShares Hedge Replication has 0.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 18.0% There is 0.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). ProShares Hedge Replication has 81.6% of the portfolio in cash.
Assets Under Management
The fund has $22 million in total assets, which is below the $664 million average for the Multistrategy category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
HDG Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The ProShares Hedge Replication expense ratio is high compared to funds in the Multistrategy category. ProShares Hedge Replication has an expense ratio of 0.95%, which is 30% higher than its category average, making the fund expense ratio grade a D. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. ProShares Hedge Replication has a portfolio turnover rate of 43%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 100% for the Multistrategy category.
Recently, in the month of July 2026, ProShares Hedge Replication returned -0.9%, which earned it a grade of D, as the Multistrategy category had an average return of 0.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.
ProShares Hedge Replication has a trailing yield of 2.38%, which is below the 2.91% category average.
The fund normally distributes its income quarterly.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
ProShares Hedge Replication Grades
Year to date, the ETF has returned 6.5%, 3.6 percentage points better than the category, which translates into a grade of D. The fund has returned 11.2% over the past year (grade of F), 6.7% over the past three years (grade of F) and 3.3% per year over the past five years (grade of F) and 3.8% per year over the past 10 years (grade of A).
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HDG Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| HDG Return (NAV) | -0.9% | 2.0% | 11.2% | 6.7% | 3.3% | 3.8% |
| HDG Return (Price) | -0.5% | 2.0% | 11.3% | 6.8% | 3.2% | 3.8% |
| NAV +/- Price Return | -0.346% | 0.007% | -0.036% | -0.011% | 0.042% | -0.009% |
| Multistrategy Avg | 0.0% | -2.7% | 5.1% | 3.8% | 5.3% | 3.7% |
| HDG Grade (NAV) | D | B | F | F | F | A |
| +/- Category (NAV) | -0.9% | 4.7% | 6.1% | 3.0% | -2.0% | 0.1% |
| HDG Tax-Cost Ratio | na | na | 1.0% | 1.3% | 0.9% | 0.5% |
HDG Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| HDG Return (NAV) | 6.5% | 7.0% | 5.2% | 7.2% | -8.3% | 2.7% | 7.3% | 9.5% | -4.2% | 5.5% | 2.2% |
| HDG Return (Price) | 6.3% | 7.2% | 5.1% | 7.1% | -8.5% | 3.0% | 7.4% | 9.6% | -4.5% | 5.6% | 2.0% |
| NAV +/- Price Ret | -0.024% | 0.031% | -0.010% | -0.011% | 0.021% | 0.086% | 0.017% | 1.0% | 7.5% | 2.2% | -9.4% |
| Multistrategy Avg | 2.9% | 2.8% | 6.7% | 6.5% | -5.8% | 4.8% | -0.6% | 9.0% | -3.7% | 5.9% | 1.5% |
| HDG Grade (NAV) | D | D | F | B | C | C | A | A | F | F | A |
| +/- Category | 3.6% | 4.1% | -1.5% | 0.7% | -2.5% | -2.0% | 8.0% | 0.4% | -0.5% | -0.4% | 0.8% |
| Risk Measures | |
| Beta: | 0.33 |
| R-Squared: | 78% |
| Standard Deviation: | 4.7% |
| Category Risk Index: | 0.62 |
| Category Risk Rating: | Low |
| Total Risk Index: | 0.39 |
| Total Risk Rating: | Low |
| Portfolio Characteristics | |
| Yield: | 2.4% |
| Total Assets: | $ 22 Mil |
| Share Class Assets: | $ 22 Mil |
| Turnover: | 43.0% |
| Expense Ratio: | 0.95% |
| Index Fund: | Yes |
| Index Tracked: | S&P 500 (TR) (1970) |
| Index Weighting: | 100% |
| Leveraged: | No |
| Socially Responsible Fund: | No |
| Capital Gains Distribution Frequency: | |
| Income Distribution Frequency: | Quarterly |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 12.8 years | |||
| Average Tenure: 10.6 years | |||
| Managers (Year): Neches Michael (2013), Davé Tarak (2018) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 1973 |
| % in Top 10 Holdings: | 81.6% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.4% |
Portfolio Allocation |
|
| Domestic Stock: | 18.0% |
| Foreign Stock: | 0.4% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.0% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 81.6% |
Purchase Information
| Legal Structure: | Open Ended Investment Company |
| Fund Family: | ProShares |
| Phone Number: | 866-776-5125 |
| Website: | www.proshares.com |
| Inception Date: | July 12, 2011 |
Expenses and Fees
| Expense Ratio (%): | 0.95% (Rating: High) |
| Category Average Expense Ratio (%): | 0.73% |
