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Upturn AI SWOT - About
ProShares Hedge Replication ETF (HDG)
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Upturn Advisory Summary
08/14/2025: HDG (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type ETF | Historic Profit 5.67% | Avg. Invested days 64 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  4.0 | ETF Returns Performance  2.0 |
| Profits based on simulation | Last Close 08/14/2025 |
Key Highlights
Volume (30-day avg) - | Beta 0.34 | 52 Weeks Range 46.01 - 49.81 | Updated Date 06/29/2025 |
52 Weeks Range 46.01 - 49.81 | Updated Date 06/29/2025 |
Upturn AI SWOT
ProShares Hedge Replication ETF
ETF Overview
Overview
The ProShares Hedge Replication ETF (HDG) seeks investment results, before fees and expenses, that track the performance of the Merrill Lynch Factor Model Hedge Replication Index. This index aims to replicate the risk-adjusted performance characteristics of the overall hedge fund universe by employing a quantitative investment strategy.
Reputation and Reliability
ProShares is a well-known issuer specializing in alternative and leveraged ETFs, generally considered reliable within this niche.
Management Expertise
ProShares has extensive experience in managing complex and alternative ETFs. They utilize quantitative models and have a dedicated research team.
Investment Objective
Goal
To track the performance of the Merrill Lynch Factor Model Hedge Replication Index.
Investment Approach and Strategy
Strategy: The ETF employs a quantitative strategy to replicate the risk-adjusted performance characteristics of hedge funds using publicly available securities.
Composition The ETF invests in a diversified portfolio of securities that exhibit similar risk and return patterns to hedge funds, often including equities, bonds, and derivatives.
Market Position
Market Share: HDG's market share is relatively small compared to broad market ETFs, as it targets a niche segment.
Total Net Assets (AUM): 85270455
Competitors
Key Competitors
- IQ Hedge Multi-Strategy Tracker ETF (QAI)
- AGFiQ US Market Neutral Anti-Beta Fund (BTAL)
- QuantShares Hedged Value Fund (HVAL)
Competitive Landscape
The competitive landscape includes ETFs that seek to replicate hedge fund strategies or provide market-neutral exposure. HDG's advantage lies in its specific index tracking, while disadvantages include potentially higher volatility than traditional hedge funds and tracking error.
Financial Performance
Historical Performance: Historical performance varies depending on market conditions and the effectiveness of the replication strategy. Past performance is not indicative of future results.
Benchmark Comparison: The ETF's performance should be compared to the Merrill Lynch Factor Model Hedge Replication Index to assess its tracking effectiveness.
Expense Ratio: 0.95
Liquidity
Average Trading Volume
The average trading volume for HDG is relatively moderate, indicating reasonable liquidity for most investors.
Bid-Ask Spread
The bid-ask spread may vary depending on market conditions but is generally manageable for an ETF of this type.
Market Dynamics
Market Environment Factors
Economic indicators, interest rates, market volatility, and investor sentiment towards hedge funds can affect HDG's performance.
Growth Trajectory
Growth trends depend on the demand for hedge fund replication strategies and the ETF's ability to attract assets.
Moat and Competitive Advantages
Competitive Edge
HDG offers investors access to a hedge fund replication strategy in an easily accessible ETF wrapper. Its quantitative approach aims to mimic hedge fund returns without the high fees and limited access associated with traditional hedge funds. The ETF's distinct advantage is its defined strategy that helps to target particular investor risk preferences. Investors should consider the potential tracking error and the ETF's expense ratio when considering this ETF.
Risk Analysis
Volatility
HDG may exhibit moderate to high volatility, depending on the underlying assets and market conditions.
Market Risk
The ETF is subject to market risk, including fluctuations in equity and bond markets, as well as risks associated with derivatives.
Investor Profile
Ideal Investor Profile
Investors seeking exposure to hedge fund-like returns with the liquidity and transparency of an ETF may find HDG suitable.
Market Risk
HDG may be best suited for sophisticated investors with a higher risk tolerance and a desire to diversify their portfolios with alternative strategies.
Summary
ProShares Hedge Replication ETF seeks to replicate hedge fund performance through a quantitative investment strategy. It offers exposure to alternative investment strategies in an accessible ETF format. Investors should be aware of the ETF's expense ratio and potential tracking error. HDG's success relies on the effectiveness of the replication strategy and market conditions, and is most appropriate for sophisticated investors with a higher risk tolerance.
Peer Comparison
Sources and Disclaimers
Data Sources:
- ProShares website
- ETF.com
- Morningstar
- Bloomberg
Disclaimers:
The data provided is for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results. Investment decisions should be based on individual circumstances and consultation with a financial advisor.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About ProShares Hedge Replication ETF
Exchange NYSE ARCA | Headquaters - | ||
IPO Launch date - | CEO - | ||
Sector - | Industry - | Full time employees - | Website |
Full time employees - | Website | ||
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. The fund is non-diversified.
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