AGG vs. HYG
AGG (iShares Core U.S. Aggregate Bond ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - AGG is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Bond Index, while HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 10 years, AGG returned 1.54%/yr vs 5.00%/yr for HYG. At a 0.12 correlation, their price movements are largely independent. AGG charges 0.03%/yr vs 0.49%/yr for HYG.
Performance
AGG vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, AGG achieves a 0.47% return, which is significantly lower than HYG's 1.56% return. Over the past 10 years, AGG has underperformed HYG with an annualized return of 1.54%, while HYG has yielded a comparatively higher 5.00% annualized return.
AGG
- 1D
- 0.08%
- 1M
- 0.61%
- YTD
- 0.47%
- 6M
- 0.55%
- 1Y
- 4.33%
- 3Y*
- 3.96%
- 5Y*
- 0.07%
- 10Y*
- 1.54%
HYG
- 1D
- -0.09%
- 1M
- 0.46%
- YTD
- 1.56%
- 6M
- 1.74%
- 1Y
- 5.93%
- 3Y*
- 8.75%
- 5Y*
- 3.68%
- 10Y*
- 5.00%
AGG vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 0.47% | 7.19% | 1.31% | 5.65% | -13.02% | -1.77% | 7.48% | 8.46% | 0.09% | 3.55% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.56% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
Correlation
The correlation between AGG and HYG is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.64 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.64 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.54 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.34 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007 | 0.12 |
Over the past year, AGG and HYG have become more correlated (0.64) than their long-term average of 0.12, meaning their price movements have been converging.
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Return for Risk
AGG vs. HYG — Risk / Return Rank
AGG
HYG
AGG vs. HYG - Risk-Adjusted Trends 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| AGG | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.40 | ||
| Sortino ratioReturn per unit of downside risk | -0.62 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.29 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.57 | 2.55 | -0.98 |
| Martin ratioReturn relative to average drawdown | 4.54 | 11.18 | -6.64 |
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Drawdowns
AGG vs. HYG - Drawdown Comparison
The maximum AGG drawdown since its inception was -18.43%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for AGG and HYG.
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Drawdown Indicators
| AGG | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.43% | -34.25% | +15.82% |
Max Drawdown (1Y)Largest decline over 1 year | -2.76% | -2.34% | -0.42% |
Max Drawdown (3Y)Largest decline over 3 years | -6.11% | -4.56% | -1.55% |
Max Drawdown (5Y)Largest decline over 5 years | -17.82% | -15.79% | -2.03% |
Max Drawdown (10Y)Largest decline over 10 years | -18.43% | -22.03% | +3.60% |
Current DrawdownCurrent decline from peak | -1.93% | -0.21% | -1.72% |
Average DrawdownAverage peak-to-trough decline | -2.71% | -3.23% | +0.52% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.96% | 0.53% | +0.43% |
Volatility
AGG vs. HYG - Volatility Comparison
iShares Core U.S. Aggregate Bond ETF (AGG) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG) have volatilities of 1.10% and 1.13%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AGG | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.10% | 1.13% | -0.03% |
Volatility (6M)Calculated over the trailing 6-month period | 2.83% | 3.11% | -0.28% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.81% | 3.88% | -0.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.10% | 7.54% | -1.44% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.41% | 8.27% | -2.86% |
AGG vs. HYG - Expense Ratio Comparison
AGG has a 0.03% expense ratio, which is lower than HYG's 0.49% expense ratio.
Dividends
AGG vs. HYG - Dividend Comparison
AGG's dividend yield for the trailing twelve months is around 3.98%, less than HYG's 5.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AGG iShares Core U.S. Aggregate Bond ETF | 3.98% | 3.89% | 3.74% | 3.13% | 2.39% | 1.77% | 2.14% | 2.70% | 2.72% | 2.32% | 2.39% | 2.45% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.91% | 5.71% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% |
Frequently Asked Questions
AGG and HYG have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HYG has higher volatility (1.13%) compared to AGG (1.10%). In terms of maximum drawdown, AGG dropped -18.43% vs HYG's -34.25%.
On 10-year performance, HYG leads with 5.00% vs 1.54% for AGG. On fees, AGG is cheaper at 0.03% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HYG has performed better with a 5.00% return vs 1.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
AGG is cheaper with a 0.03% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.91%, compared with 3.98% for AGG.
AGG is categorized as Total Bond Market, while HYG is High Yield Bonds. AGG tracks Bloomberg U.S. Aggregate Bond Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. Their fees differ too: 0.03% for AGG and 0.49% for HYG.
HYG currently has the higher Sharpe Ratio (1.54 vs 1.14), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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