DHF vs. HIO

Last updated Jun 23, 2026

DHF (Dimensional High Yield Fund) and HIO (Western Asset High Income Opportunity Fund Inc) are both High Yield Bonds funds. Over the past 10 years, DHF returned 5.54%/yr vs 5.91%/yr for HIO. At a 0.37 correlation, their price movements are largely independent. DHF charges 0.04%/yr vs 0.01%/yr for HIO.

Performance

DHF vs. HIO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional High Yield Fund (DHF) and Western Asset High Income Opportunity Fund Inc (HIO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DHF achieves a 0.33% return, which is significantly lower than HIO's 2.95% return. Over the past 10 years, DHF has underperformed HIO with an annualized return of 5.54%, while HIO has yielded a comparatively higher 5.91% annualized return.

DHF

• 1D: 0.00%
• 1M: -0.52%
• YTD: 0.33%
• 6M: 0.23%
• 1Y: 2.75%
• 3Y*: 12.25%
• 5Y*: 2.35%
• 10Y*: 5.54%

HIO

• 1D: 0.28%
• 1M: 0.28%
• YTD: 2.95%
• 6M: 2.82%
• 1Y: 3.61%
• 3Y*: 9.61%
• 5Y*: 2.74%
• 10Y*: 5.91%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DHF vs. HIO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DHF Dimensional High Yield Fund	0.33%	5.67%	21.12%	15.00%	-22.70%	10.35%	6.46%	24.68%	-11.11%	8.43%
HIO Western Asset High Income Opportunity Fund Inc	2.95%	5.33%	13.58%	8.07%	-17.09%	12.80%	6.07%	24.23%	-7.60%	8.97%

Correlation

The correlation between DHF and HIO is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since Apr 27, 1998	0.37

The correlation between DHF and HIO shifts across timeframes, from 0.37 (all time) to 0.49 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

DHF vs. HIO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DHF

DHF Risk / Return Rank: 4
DHF Sharpe Ratio Rank: 4
DHF Sortino Ratio Rank: 4
DHF Omega Ratio Rank: 4
DHF Calmar Ratio Rank: 5
DHF Martin Ratio Rank: 5

HIO

HIO Risk / Return Rank: 5
HIO Sharpe Ratio Rank: 5
HIO Sortino Ratio Rank: 5
HIO Omega Ratio Rank: 5
HIO Calmar Ratio Rank: 6
HIO Martin Ratio Rank: 5

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DHF vs. HIO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional High Yield Fund (DHF) and Western Asset High Income Opportunity Fund Inc (HIO). 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.

	DHF	HIO	Difference
Sharpe ratio: Return per unit of total volatility	0.23	0.35	-0.12
Sortino ratio: Return per unit of downside risk	0.44	0.54	-0.10
Omega ratio: Gain probability vs. loss probability	1.05	1.07	-0.02
Calmar ratio: Return relative to maximum drawdown	0.32	0.54	-0.22
Martin ratio: Return relative to average drawdown	0.88	1.16	-0.28

DHF vs. HIO - Sharpe Ratio Comparison

The current DHF Sharpe Ratio is 0.23, which is lower than the HIO Sharpe Ratio of 0.35. The chart below compares the historical Sharpe Ratios of DHF and HIO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

DHF vs. HIO - Drawdown Comparison

The maximum DHF drawdown since its inception was -71.32%, which is greater than HIO's maximum drawdown of -49.69%. Use the drawdown chart below to compare losses from any high point for DHF and HIO.

Drawdown Indicators

	DHF	HIO	Difference
Max Drawdown Largest peak-to-trough decline	-71.32%	-49.69%	-21.63%
Max Drawdown (1Y) Largest decline over 1 year	-8.66%	-6.70%	-1.96%
Max Drawdown (3Y) Largest decline over 3 years	-11.81%	-13.29%	+1.48%
Max Drawdown (5Y) Largest decline over 5 years	-37.82%	-26.18%	-11.64%
Max Drawdown (10Y) Largest decline over 10 years	-42.94%	-40.57%	-2.37%
Current Drawdown Current decline from peak	-3.85%	-1.89%	-1.96%
Average Drawdown Average peak-to-trough decline	-22.99%	-6.45%	-16.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.13%	3.11%	+0.02%

Volatility

DHF vs. HIO - Volatility Comparison

The current volatility for Dimensional High Yield Fund (DHF) is 2.44%, while Western Asset High Income Opportunity Fund Inc (HIO) has a volatility of 2.62%. This indicates that DHF experiences smaller price fluctuations and is considered to be less risky than HIO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DHF	HIO	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.44%	2.62%	-0.18%
Volatility (6M) Calculated over the trailing 6-month period	9.46%	7.89%	+1.57%
Volatility (1Y) Calculated over the trailing 1-year period	11.92%	10.34%	+1.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.76%	12.86%	+2.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.74%	15.96%	+1.78%

DHF vs. HIO - Expense Ratio Comparison

DHF has a 0.04% expense ratio, which is higher than HIO's 0.02% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

DHF vs. HIO - Dividend Comparison

DHF's dividend yield for the trailing twelve months is around 8.75%, less than HIO's 11.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DHF Dimensional High Yield Fund	8.75%	8.47%	8.14%	7.86%	10.12%	8.24%	8.60%	8.52%	10.41%	8.98%	9.76%	11.30%
HIO Western Asset High Income Opportunity Fund Inc	11.70%	11.48%	10.84%	9.90%	9.11%	7.02%	7.86%	6.91%	7.31%	7.04%	8.44%	9.08%

Frequently Asked Questions

Can I hold both DHF and HIO in my portfolio?

DHF and HIO have a correlation of 0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DHF or HIO?

HIO has higher volatility (2.62%) compared to DHF (2.44%). In terms of maximum drawdown, DHF dropped -71.32% vs HIO's -49.69%.

Which has better risk-adjusted returns?

HIO currently has the higher Sharpe Ratio (0.35 vs 0.23), 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.