At a glance
HEGD charges 0.87% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $734.9M in assets, the 8th largest of that group; it paid 0.33% of its price in distributions over the past 12 months, annual. Over the past year it returned +6.5% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +15.5% a year. At its worst it fell 14.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 14 months after the low.
The short version
Swan Hedged Equity US Large Cap ETF (HEGD) is an actively managed fund that holds the SPDR S&P 500 ETF Trust (SPY) and buys long-term S&P 500 put options as insurance against large declines. It aims for stock-market growth with shallower drops, and it moved about 59% as much as the market over the year to October 27, 2026. That protection costs 0.87% a year and gives up some upside.
Price history
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HEGD +6.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HEGD official prospectus, to Dec 31, 2025 | — | +12.85% | — | +9.34% | — | — |
| HEGD price data to Oct 27, 2026 | +7.1% | +6.5% | +15.5% | +7.8% | — | +8.8% |
- Over the year to Oct 27, 2026, HEGD returned +6.5%, 8th of 8 among similar funds.
- Its 5-year annualized return was +7.8%.
- Its worst full calendar year was 2022 (-11.3%); its best was 2024 (+15.3%).
- The deepest fall in its price history was 14.6% (Dec 29, 2021 to Oct 12, 2022), recovered by Dec 18, 2023.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +7.1% | — |
| 2025 | +12.9% | +12.85% |
| 2024 | +15.3% | +15.47% |
| 2023 | +14.2% | +13.99% |
| 2022 | -11.3% | -10.84% |
| 2021 | — | +16.87% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 13.9% over that stretch · deepest drop along the way 14.1%, back to its old high 14.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.0900 | -10.0% |
| 2024 | $0.1000 | +25.0% |
| 2023 | $0.0800 | -46.7% |
| 2022 | $0.1500 |
What's inside
As of Aug 31, 2026, the fund held 1 securities; the ten largest made up 93.4% of assets.
| Fund held | Weight | |
|---|---|---|
| State Street SPDR S&P 500 ETF Trust | 93.40% |
By country
United States 93.4%By asset type
Stocks 93.4%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $41.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -1.06%, -0.28%, +1.54%.
How it works
HEGD is actively managed by Swan Capital Management, with Swan Global Management as sub-adviser. It uses the Defined Risk Strategy that Randy Swan developed in 1997. The strategy assumes stock picking and market timing are hard, so the fund doesn't attempt them. At least 80% of assets go to large US companies, either directly or through other funds. As of August 31, 2026, 93.4% sat in one ETF, SPY, which tracks the S&P 500.
The hedge uses long-term S&P 500 index put options. A put gains value when the index falls below a set level, called the strike price, so it cushions a deep fall. The fund pays a premium for this protection, which drags on returns when stocks rise. The puts are usually replaced once a year at a strike near the market's level at that time. As of August 31, 2026, the largest puts expired in December 2027, with strikes of 7,400 and 7,300.
The manager also trades other S&P 500 options to try to add return. These include spreads, such as buying a six-month call while selling a higher-strike one. They also include occasional one- to three-month calls written on part of the portfolio, much like a covered call. Selling calls caps some gains in a sharp rally. Rebalancing is usually annual, and turnover was 20%. Unlike a buffer ETF, HEGD has no preset loss buffer or upside cap, and the hedge may not work as intended.
What it really costs
- HEGD charges 0.87% a year, versus an average of 0.86% for the similar funds below (6th of 8, cheapest first).
- Of that, 0.79% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $89 in the first year and $1,073 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HEGD | $89 | $278 | $482 | $1,073 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It keeps most of its money in the S&P 500 but holds put options meant to limit large losses, and its beta was 0.59 over the year to October 27, 2026.
HEGD could hold part of a stock allocation for someone who wants smaller swings. Over the year to October 27, 2026, its beta (a gauge of how much it moves with the market) was 0.59, and its volatility was 7.8%. It launched in December 2020, so it missed the 2008 and 2020 crashes. In the 2022 bear market it fell 14.1%. Its deepest drop, 14.6%, hit bottom on October 12, 2022, and took about 14 months to recover, by December 2023. Its worst calendar year was 2022, at -10.84%. The hedge did not stop a double-digit loss for anyone who had to sell shares that year.
Income is minor: the yield was 0.33% as of October 27, 2026, paid once a year. Costs run 0.87% a year, or $89 in the first year on $10,000 in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want S&P 500 exposure with a standing put-option hedge, and who accept less upside for smaller swings (beta 0.59 over one year).
- Those who prefer protection that rolls forward each year to a buffer ETF's fixed outcome period, preset loss buffer and upside cap.
- Retirees who mainly fear a deep bear market and who accept that the hedge still allowed a 10.84% loss in 2022.
Look elsewhere if
- Income seekers: the yield was 0.33% as of October 27, 2026, and it pays only once a year.
- Cost-focused investors: the 0.87% expense ratio adds up to $1,073 over 10 years in the SEC's standard $10,000 example.
- Anyone wanting more upside: its 6.5% one-year return to October 27, 2026 ranked last of the eight buffer-style funds compared.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| HEGD this fund | 0.87% | $734.9M | +6.5% | +15.5% |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Is HEGD good for retirement?
HEGD may suit retirees who want S&P 500 growth with smaller swings, but it isn't built for income. Its beta was 0.59 over the year to October 27, 2026. Its deepest drop was 14.6% in 2022, and it recovered about 14 months after the low. The yield was only 0.33%, paid annually, and the fund costs 0.87% a year. It launched in December 2020, so it has not been through a crash like 2008.
What's the difference between HEGD and BUFR?
Both aim to soften stock-market losses, but they work differently. FT Vest Laddered Buffer ETF (BUFR) is a buffer, or defined-outcome, fund: it targets a set loss cushion and an upside cap over fixed periods. HEGD holds SPY and rolls long-term S&P 500 puts, with no preset cap. BUFR costs 0.95% against HEGD's 0.87%. As of October 27, 2026, BUFR returned 11.6% over one year and 16.8% a year over three years. HEGD returned 6.5% and 15.5%.
Does HEGD pay dividends?
Yes, but very little, and only once a year. HEGD paid about $0.09 per share over the 12 months to October 27, 2026, a yield of 0.33%. Most of its assets sit in SPY, and its options are used mainly for hedging rather than producing cash payouts. Investors who want regular income from this fund would likely need to sell shares to raise it.
How did HEGD do in 2022?
HEGD lost 10.84% in 2022, its worst calendar year, according to its prospectus. Its weakest quarter ended June 30, 2022, at -8.26%. From its December 29, 2021 peak to its October 12, 2022 low, it fell 14.6%. It then took about 14 months to get back to that peak, which it reached on December 18, 2023. It went on to gain 13.99% in 2023 and 15.47% in 2024.
What is HEGD's expense ratio?
HEGD's expense ratio is 0.87% a year, including a 0.79% management fee, according to its prospectus filed March 27, 2026. That is close to the 0.86% average of the buffer-style funds it is compared with here. In the SEC's standard example, $10,000 earning 5% a year would cost about $89 after one year, $482 after five and $1,073 after ten. Buyers and sellers also pay trading costs such as bid/ask spreads.