AGG vs. HYG
Compare and contrast key facts about iShares Core U.S. Aggregate Bond ETF (AGG) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG).
AGG and HYG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. AGG is a passively managed fund by iShares that tracks the performance of the Barclays Capital U.S. Aggregate Bond Index. It was launched on Sep 22, 2003. HYG is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid High Yield Index. It was launched on Apr 11, 2007. Both AGG and HYG are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: AGG or HYG.
Key characteristics
| AGG | HYG | |
|---|---|---|
| YTD Return | 1.78% | 8.25% |
| 1Y Return | 6.87% | 13.37% |
| 3Y Return (Ann) | -2.07% | 2.76% |
| 5Y Return (Ann) | -0.18% | 3.50% |
| 10Y Return (Ann) | 1.45% | 3.96% |
| Sharpe Ratio | 1.29 | 2.91 |
| Sortino Ratio | 1.88 | 4.53 |
| Omega Ratio | 1.23 | 1.57 |
| Calmar Ratio | 0.52 | 2.48 |
| Martin Ratio | 4.35 | 21.88 |
| Ulcer Index | 1.71% | 0.62% |
| Daily Std Dev | 5.79% | 4.65% |
| Max Drawdown | -18.43% | -34.24% |
| Current Drawdown | -8.52% | -0.71% |
Correlation
The correlation between AGG and HYG is 0.09, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
AGG vs. HYG - Performance Comparison
In the year-to-date period, AGG achieves a 1.78% return, which is significantly lower than HYG's 8.25% return. Over the past 10 years, AGG has underperformed HYG with an annualized return of 1.45%, while HYG has yielded a comparatively higher 3.96% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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AGG vs. HYG - Expense Ratio Comparison
AGG has a 0.05% expense ratio, which is lower than HYG's 0.49% expense ratio.
Risk-Adjusted Performance
AGG vs. HYG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Core U.S. Aggregate Bond ETF (AGG) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
AGG vs. HYG - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 3.64%, less than HYG's 5.90% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 3.64% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.96% | 2.32% | 2.39% | 2.45% | 2.40% | 2.32% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.90% | 5.75% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% | 5.69% | 6.10% |
Drawdowns
AGG vs. HYG - Drawdown Comparison
The maximum AGG drawdown since its inception was -18.43%, smaller than the maximum HYG drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for AGG and HYG. For additional features, visit the drawdowns tool.
Volatility
AGG vs. HYG - Volatility Comparison
iShares Core U.S. Aggregate Bond ETF (AGG) has a higher volatility of 1.64% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.13%. This indicates that AGG's price experiences larger fluctuations and is considered to be riskier than HYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.