Do hedged equity ETFs protect against a fall?
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Partly, over the last year. In the weeks the S&P 500 fell, the median hedged equity ETF fell 48% as much as the index. Of the 22, 6 fell less than half as much and 5 rose.
A hedged equity fund owns stocks and pays for protection against a fall, most often with put options.
Most still move with stocks. The median correlation with the S&P 500 was +0.91, so the hedge changed how far these funds fell more than which way they went.
What a fund earned is a separate question: 16 of the 22 finished ahead of T-bills over the same 52 weeks.
On ETFIQ today
Answered from ETFIQ data as of Nov 4, 2026.Points (pts) are percentage points.
| Ticker | Fund | Correlation | Down-week capture | Against T-bills |
|---|---|---|---|---|
| HELO | JPMorgan Hedged Equity Laddered Overlay | +0.95 | 60.7% | +3.4 pts |
| ACIO | Aptus Collared Investment Opportunity ET | +0.99 | 84.3% | +3.3 pts |
| FHEQ | Fidelity Hedged Equity ETF | +0.98 | 86.0% | +4.7 pts |
| HEGD | Swan Hedged Equity US Large Cap ETF | +0.98 | 71.4% | +3.2 pts |
| CAOS | Alpha Architect Tail Risk ETF | −0.15 | −3.3% | −2.3 pts |
| HEDG | Equable Shares Hedged Equity ETF | +0.87 | 15.8% | +5.9 pts |
| HEQT | Simplify Hedged Equity ETF | +0.97 | 54.2% | +6.5 pts |
| HOLA | JPMorgan International Hedged Equity Lad | +0.69 | 36.9% | +6.5 pts |
| SHDG | Soundwatch Hedged Equity ETF | +0.90 | 70.4% | +1.6 pts |
| TAIL | Cambria Tail Risk ETF | −0.74 | −15.9% | −16.0 pts |
| PHEQ | Parametric Hedged Equity ETF | +0.94 | 31.6% | +7.2 pts |
| KSPY | KraneShares Hedgeye Hedged Equity Index | +0.92 | 41.0% | +7.9 pts |
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ETFIQ, Do hedged equity ETFs protect against a fall?, data as of Nov 4, 2026. https://etfiq.com/questions/do-hedged-equity-etfs-protect-against-a-fall
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