SECT vs ZHDG
Main Sector Rotation ETF vs ZEGA Buy and Hedge ETF
Which is better, SECT or ZHDG?
Nearly the same fund. SECT costs less.
SECT has a lower expense ratio. SECT led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.95.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | SECT | ZHDG |
|---|---|---|
| Expense Ratio | 0.69%Best | 0.95% |
| AUM | $2.9B | $31M |
| Dividend Yield | 0.69% | 2.42% |
| Holdings | 19 | 28 |
| YTD Return | +10.58%Best | +6.90% |
| 1Y Return | +14.28%Best | +8.99% |
| 3Y Return (annualized) | +18.91%Best | +14.14% |
| 5Y Return (annualized) | +11.81%Best | +6.03% |
| Volatility (annualized) | 15.5% | 12.3%Best |
| Max Drawdown | -21.7%Best | -23.3% |
| $10,000 over 5 years | $17,474Best | $13,401 |
| Fund Family | Main Management ETF Advisors, LLC | Zega ETFs |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Blend |
| Inception | Sep 5, 2017 | Jul 6, 2021 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 7, 2021 to Oct 14, 2026 (5.3 years).
SECT vs ZHDG growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 5.3 years both funds cover.
SECT vs ZHDG Performance
Main Sector Rotation ETF (SECT) is an ETF from Main Management ETF Advisors, LLC and ZEGA Buy and Hedge ETF (ZHDG) is an ETF from Zega ETFs. Over the past year SECT returned +14.28% while ZHDG returned +8.99%. Year to date, SECT is up 10.58% versus a gain of 6.90% for ZHDG.
Over three years, SECT compounded at +18.91% per year against +14.14% for ZHDG; over five years the annualized figures are +11.81% and +6.03% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SECT has been the more volatile fund, with annualized monthly volatility of 15.5% compared with 12.3% for ZHDG. 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 -21.7% for SECT and -23.3% for ZHDG. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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
SECT charges 0.69% per year while ZHDG charges 0.95%. On a $10,000 position that is $69 vs $95 annually, a gap of $26 per year that compounds over a long holding period. On income, SECT currently yields 0.69% against 2.42% for ZHDG.
Holdings Overlap
We hold position weights for 10 holdings in SECT and 2 in ZHDG, totalling 100.0% and 8.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 10 positions we hold weights for in SECT and 2 in ZHDG, against full books of 19 and 28.
You are not choosing between two funds in isolation.
Whichever of SECT and ZHDG you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, SECT or ZHDG?
SECT has an expense ratio of 0.69% while ZHDG charges 0.95%. SECT is the cheaper option, by $26 a year on a $10,000 investment.
Which performed better, SECT or ZHDG?
Over the past year SECT returned +14.28% vs +8.99% for ZHDG, so SECT leads on 1-year performance. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, SECT or ZHDG?
SECT has been the more volatile fund at 15.5% annualized versus 12.3% for ZHDG. Worst drawdown: SECT -21.7% vs ZHDG -23.3%.
Should I hold both SECT and ZHDG?
SECT and ZHDG have a monthly-return correlation of 0.95, so they move almost identically. What is left to separate them is the fee and the index each one tracks. This is information, not a recommendation.
Which pays a higher dividend, SECT or ZHDG?
SECT yields 0.69% while ZHDG yields 2.42%, so ZHDG currently pays the higher dividend yield.
Is ZHDG better than SECT?
SECT has a lower expense ratio. SECT led over 1Y, 3Y, 5Y and the full window. The two have moved almost in lockstep, correlation 0.95. Which one suits a particular account depends on what it is for. This is information, not a recommendation.