EMB vs. HYG
Compare and contrast key facts about iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG).
EMB and HYG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. EMB is a passively managed fund by iShares that tracks the performance of the JPMorgan EMBI Global Core Index. It was launched on Dec 17, 2007. 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 EMB 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: EMB or HYG.
Key characteristics
| EMB | HYG | |
|---|---|---|
| YTD Return | 1.51% | 1.85% |
| 1Y Return | 9.88% | 10.00% |
| 3Y Return (Ann) | -2.88% | 1.13% |
| 5Y Return (Ann) | 0.40% | 3.00% |
| 10Y Return (Ann) | 2.22% | 3.28% |
| Sharpe Ratio | 1.05 | 1.57 |
| Daily Std Dev | 9.02% | 6.19% |
| Max Drawdown | -34.70% | -34.24% |
| Current Drawdown | -11.08% | 0.00% |
Correlation
The correlation between EMB and HYG is 0.52, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
EMB vs. HYG - Performance Comparison
In the year-to-date period, EMB achieves a 1.51% return, which is significantly lower than HYG's 1.85% return. Over the past 10 years, EMB has underperformed HYG with an annualized return of 2.22%, while HYG has yielded a comparatively higher 3.28% 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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EMB vs. HYG - Expense Ratio Comparison
EMB has a 0.39% expense ratio, which is lower than HYG's 0.49% expense ratio.
Risk-Adjusted Performance
EMB vs. HYG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) 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
EMB vs. HYG - Dividend Comparison
EMB's dividend yield for the trailing twelve months is around 4.83%, less than HYG's 5.93% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 4.83% | 4.74% | 5.04% | 3.89% | 3.88% | 4.51% | 5.64% | 4.54% | 4.83% | 4.84% | 4.56% | 4.75% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.93% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% | 5.69% | 6.10% |
Drawdowns
EMB vs. HYG - Drawdown Comparison
The maximum EMB drawdown since its inception was -34.70%, roughly equal to the maximum HYG drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for EMB and HYG. For additional features, visit the drawdowns tool.
Volatility
EMB vs. HYG - Volatility Comparison
iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) has a higher volatility of 3.12% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.90%. This indicates that EMB'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.