BDCZ vs. HYG
BDCZ (ETRACS MVIS Business Development Companies Index ETN) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - BDCZ is a Financials Equities fund tracking the BDCZ-US - MVIS US Business Development Companies 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, BDCZ returned 6.05%/yr vs 5.00%/yr for HYG. At a 0.40 correlation, their price movements are largely independent. BDCZ charges 0.85%/yr vs 0.49%/yr for HYG.
Performance
BDCZ vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, BDCZ achieves a -8.73% return, which is significantly lower than HYG's 1.56% return. Over the past 10 years, BDCZ has outperformed HYG with an annualized return of 6.05%, while HYG has yielded a comparatively lower 5.00% annualized return.
BDCZ
- 1D
- 0.45%
- 1M
- -0.80%
- YTD
- -8.73%
- 6M
- -6.81%
- 1Y
- -10.27%
- 3Y*
- 4.71%
- 5Y*
- 3.29%
- 10Y*
- 6.05%
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%
BDCZ vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BDCZ ETRACS MVIS Business Development Companies Index ETN | -8.73% | -3.72% | 12.22% | 25.31% | -9.12% | 33.97% | -10.95% | 26.00% | -7.64% | 0.40% |
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 BDCZ and HYG is 0.38, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.38 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.43 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.50 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.42 |
Correlation (All Time) Calculated using the full available price history since Oct 9, 2015 | 0.40 |
The correlation between BDCZ and HYG shifts across timeframes, from 0.38 (1 year) to 0.50 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
BDCZ vs. HYG — Risk / Return Rank
BDCZ
HYG
BDCZ vs. HYG - Risk-Adjusted Trends 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.
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.
| BDCZ | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.04 | ||
| Sortino ratioReturn per unit of downside risk | -2.90 | ||
| Omega ratioGain probability vs. loss probability | 0.93 | 1.29 | -0.36 |
| Calmar ratioReturn relative to maximum drawdown | -0.52 | 2.55 | -3.06 |
| Martin ratioReturn relative to average drawdown | -0.89 | 11.18 | -12.07 |
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Drawdowns
BDCZ vs. HYG - Drawdown Comparison
The maximum BDCZ drawdown since its inception was -55.63%, which is greater than HYG's maximum drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for BDCZ and HYG.
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Drawdown Indicators
| BDCZ | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -55.63% | -34.25% | -21.38% |
Max Drawdown (1Y)Largest decline over 1 year | -19.95% | -2.34% | -17.61% |
Max Drawdown (3Y)Largest decline over 3 years | -20.77% | -4.56% | -16.21% |
Max Drawdown (5Y)Largest decline over 5 years | -23.12% | -15.79% | -7.33% |
Max Drawdown (10Y)Largest decline over 10 years | -55.63% | -22.03% | -33.60% |
Current DrawdownCurrent decline from peak | -17.94% | -0.21% | -17.73% |
Average DrawdownAverage peak-to-trough decline | -7.90% | -3.23% | -4.67% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 11.51% | 0.53% | +10.98% |
Volatility
BDCZ vs. HYG - Volatility Comparison
ETRACS MVIS Business Development Companies Index ETN (BDCZ) has a higher volatility of 8.44% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.13%. 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.
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Volatility by Period
| BDCZ | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.44% | 1.13% | +7.31% |
Volatility (6M)Calculated over the trailing 6-month period | 17.35% | 3.11% | +14.24% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.62% | 3.88% | +16.74% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.81% | 7.54% | +10.27% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.76% | 8.27% | +13.49% |
BDCZ vs. HYG - Expense Ratio Comparison
BDCZ has a 0.85% expense ratio, which is higher than HYG's 0.49% expense ratio.
Dividends
BDCZ vs. HYG - Dividend Comparison
BDCZ's dividend yield for the trailing twelve months is around 11.37%, more than HYG's 5.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BDCZ ETRACS MVIS Business Development Companies Index ETN | 11.37% | 10.65% | 9.26% | 9.13% | 9.39% | 7.49% | 10.01% | 8.40% | 9.66% | 8.74% | 7.98% | 0.00% |
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
BDCZ and HYG have a correlation of 0.38, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BDCZ has higher volatility (8.44%) compared to HYG (1.13%). In terms of maximum drawdown, BDCZ dropped -55.63% vs HYG's -34.25%.
On 10-year performance, BDCZ leads with 6.05% vs 5.00% for HYG. On fees, HYG is cheaper at 0.49% per year. On volatility, HYG has been the lower-risk option at 1.13%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, BDCZ has performed better with a 6.05% return vs 5.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HYG is cheaper with a 0.49% expense ratio, compared with 0.85% for BDCZ.
BDCZ has the higher dividend yield at 11.37%, compared with 5.91% for HYG.
BDCZ is categorized as Financials Equities, while HYG is High Yield Bonds. BDCZ tracks BDCZ-US - MVIS US Business Development Companies Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. They also come from different issuers: UBS and iShares. Their fees differ too: 0.85% for BDCZ and 0.49% for HYG.
HYG currently has the higher Sharpe Ratio (1.54 vs -0.50), 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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