BDCZ vs. HYG
Compare and contrast key facts about ETRACS MVIS Business Development Companies Index ETN (BDCZ) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG).
BDCZ and HYG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. BDCZ is a passively managed fund by UBS that tracks the performance of the BDCZ-US - MVIS US Business Development Companies Index. It was launched on Oct 8, 2015. 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 BDCZ 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: BDCZ or HYG.
Key characteristics
| BDCZ | HYG | |
|---|---|---|
| YTD Return | 6.45% | 1.30% |
| 1Y Return | 30.47% | 9.36% |
| 3Y Return (Ann) | 10.11% | 1.01% |
| 5Y Return (Ann) | 9.44% | 2.75% |
| Sharpe Ratio | 2.57 | 1.50 |
| Daily Std Dev | 11.93% | 6.21% |
| Max Drawdown | -55.62% | -34.24% |
| Current Drawdown | -0.88% | -0.43% |
Correlation
The correlation between BDCZ and HYG is 0.39, 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
BDCZ vs. HYG - Performance Comparison
In the year-to-date period, BDCZ achieves a 6.45% return, which is significantly higher than HYG's 1.30% 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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BDCZ vs. HYG - Expense Ratio Comparison
BDCZ has a 0.85% expense ratio, which is higher than HYG's 0.49% expense ratio.
Risk-Adjusted Performance
BDCZ vs. HYG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for ETRACS MVIS Business Development Companies Index ETN (BDCZ) 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
BDCZ vs. HYG - Dividend Comparison
BDCZ's dividend yield for the trailing twelve months is around 9.20%, more than HYG's 5.96% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BDCZ ETRACS MVIS Business Development Companies Index ETN | 9.20% | 9.13% | 11.65% | 7.49% | 10.01% | 8.39% | 9.67% | 8.74% | 7.98% | 0.00% | 0.00% | 0.00% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.96% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% | 5.69% | 6.10% |
Drawdowns
BDCZ vs. HYG - Drawdown Comparison
The maximum BDCZ drawdown since its inception was -55.62%, which is greater than HYG's maximum drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for BDCZ and HYG. For additional features, visit the drawdowns tool.
Volatility
BDCZ vs. HYG - Volatility Comparison
ETRACS MVIS Business Development Companies Index ETN (BDCZ) has a higher volatility of 2.86% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.87%. This indicates that BDCZ'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.