FALN vs. HYEM
FALN (iShares Fallen Angels USD Bond ETF) and HYEM (VanEck Emerging Markets High Yield Bond ETF) are both High Yield Bonds funds - FALN tracks the Bloomberg US High Yield Fallen Angel 3% Capped Index while HYEM tracks the ICE BofA Diversified High Yield US Emerging Markets Corporate Plus Index. Both are passively managed. Over the past 10 years, FALN returned 6.24%/yr vs 4.35%/yr for HYEM. Their 0.47 correlation means their historical movements had little consistent relationship. FALN charges 0.25%/yr vs 0.40%/yr for HYEM.
Performance
FALN vs. HYEM - Performance Comparison
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Returns By Period
In the year-to-date period, FALN achieves a 1.86% return, which is significantly lower than HYEM's 4.23% return. Over the past 10 years, FALN has outperformed HYEM with an annualized return of 6.24%, while HYEM has yielded a comparatively lower 4.35% annualized return.
FALN
- 1D
- -0.11%
- 1M
- -0.92%
- 6M
- 0.86%
- YTD
- 1.86%
- 1Y
- 6.24%
- 3Y*
- 8.53%
- 5Y*
- 3.39%
- 10Y*
- 6.24%
- ALL TIME*
- 6.52%
HYEM
- 1D
- 0.00%
- 1M
- 0.10%
- 6M
- 2.68%
- YTD
- 4.23%
- 1Y
- 7.39%
- 3Y*
- 10.21%
- 5Y*
- 3.18%
- 10Y*
- 4.35%
- ALL TIME*
- 4.72%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $23.72M | $18.39M | $26.66M | |
| $1.95M | $2.31M | $4.29M |
FALN vs. HYEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 1.86% | 8.92% | 7.68% | 13.47% | -13.79% | 5.40% | 14.85% | 17.42% | -4.97% | 8.70% |
HYEM VanEck Emerging Markets High Yield Bond ETF | 4.23% | 9.24% | 12.14% | 8.35% | -13.39% | -1.31% | 6.87% | 12.85% | -3.38% | 7.94% |
Correlation
The correlation between FALN and HYEM is 0.47, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.47 |
Correlation (3Y) Balances recent behavior with more history. | 0.50 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.58 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.47 |
Correlation (All Time) Calculated using the full available price history since Jun 17, 2016 | 0.47 |
The correlation between FALN and HYEM shifts across timeframes, from 0.47 (10 years) to 0.58 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
FALN vs. HYEM — Risk / Return Rank
FALN
HYEM
FALN vs. HYEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Fallen Angels USD Bond ETF (FALN) and VanEck Emerging Markets High Yield Bond ETF (HYEM). 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.
| FALN | HYEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.41 | ||
| Sortino ratioReturn per unit of downside risk | -0.60 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.34 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.57 | 2.85 | -1.28 |
| Martin ratioReturn relative to average drawdown | 6.42 | 11.42 | -5.00 |
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Drawdowns
FALN vs. HYEM - Drawdown Comparison
The maximum FALN drawdown since its inception was -29.22%, smaller than the maximum HYEM drawdown of -30.96%. Use the drawdown chart below to compare losses from any high point for FALN and HYEM.
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Drawdown Indicators
| FALN | HYEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.22% | -30.96% | +1.74% |
Max Drawdown (1Y)Largest decline over 1 year | -3.96% | -2.73% | -1.23% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -5.23% | -0.69% |
Max Drawdown (5Y)Largest decline over 5 years | -18.78% | -26.29% | +7.51% |
Max Drawdown (10Y)Largest decline over 10 years | -29.22% | -30.96% | +1.74% |
Current DrawdownCurrent decline from peak | -1.07% | -0.24% | -0.83% |
Average DrawdownAverage peak-to-trough decline | -3.28% | -4.35% | +1.07% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.97% | 0.68% | +0.29% |
Volatility
FALN vs. HYEM - Volatility Comparison
iShares Fallen Angels USD Bond ETF (FALN) has a higher volatility of 0.99% compared to VanEck Emerging Markets High Yield Bond ETF (HYEM) at 0.71%. This indicates that FALN's price experiences larger fluctuations and is considered to be riskier than HYEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FALN | HYEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.99% | 0.71% | +0.28% |
Volatility (6M)Calculated over the trailing 6-month period | 3.79% | 3.16% | +0.63% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.59% | 4.40% | +0.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.33% | 7.50% | -0.17% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.86% | 9.26% | -0.40% |
FALN vs. HYEM - Expense Ratio Comparison
FALN has a 0.25% expense ratio, which is lower than HYEM's 0.40% expense ratio.
Dividends
FALN vs. HYEM - Dividend Comparison
FALN's dividend yield for the trailing twelve months is around 6.51%, less than HYEM's 6.74% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 5.98% | 6.31% | 6.24% | 5.37% | 5.08% | 3.40% | 5.14% | 5.35% | 5.97% | 6.98% | 3.55% | 0.00% |
HYEM VanEck Emerging Markets High Yield Bond ETF | 6.17% | 6.67% | 6.34% | 6.27% | 6.47% | 5.33% | 5.56% | 6.14% | 5.71% | 5.86% | 6.25% | 7.64% |
Frequently Asked Questions
FALN and HYEM have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FALN has higher volatility (0.99%) compared to HYEM (0.71%). In terms of maximum drawdown, FALN dropped -29.22% vs HYEM's -30.96%.
On 10-year performance, FALN leads with 6.24% vs 4.35% for HYEM. On fees, FALN is cheaper at 0.25% per year. On volatility, HYEM has been the lower-risk option at 0.71%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FALN has performed better with a 6.24% return vs 4.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
FALN is cheaper with a 0.25% expense ratio, compared with 0.40% for HYEM.
HYEM has the higher dividend yield at 6.17%, compared with 5.98% for FALN.
FALN tracks Bloomberg US High Yield Fallen Angel 3% Capped Index, while HYEM tracks ICE BofA Diversified High Yield US Emerging Markets Corporate Plus Index. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.25% for FALN and 0.40% for HYEM.
HYEM currently has the higher Sharpe Ratio (1.77 vs 1.36), 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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