FALN vs. HYG
Compare and contrast key facts about iShares Fallen Angels USD Bond ETF (FALN) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG).
FALN and HYG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FALN is a passively managed fund by iShares that tracks the performance of the Bloomberg US High Yield Fallen Angel 3% Capped Index. It was launched on Jun 14, 2016. 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 FALN 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: FALN or HYG.
Key characteristics
| FALN | HYG | |
|---|---|---|
| YTD Return | 1.39% | 0.88% |
| 1Y Return | 11.01% | 8.26% |
| 3Y Return (Ann) | 1.10% | 0.89% |
| 5Y Return (Ann) | 5.04% | 2.73% |
| Sharpe Ratio | 1.95 | 1.42 |
| Daily Std Dev | 5.87% | 6.15% |
| Max Drawdown | -29.22% | -34.24% |
| Current Drawdown | -1.58% | -0.84% |
Correlation
The correlation between FALN and HYG is 0.83, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FALN vs. HYG - Performance Comparison
In the year-to-date period, FALN achieves a 1.39% return, which is significantly higher than HYG's 0.88% 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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FALN vs. HYG - Expense Ratio Comparison
FALN has a 0.25% expense ratio, which is lower than HYG's 0.49% expense ratio.
Risk-Adjusted Performance
FALN vs. HYG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Fallen Angels USD Bond ETF (FALN) 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
FALN vs. HYG - Dividend Comparison
FALN's dividend yield for the trailing twelve months is around 5.74%, less than HYG's 5.86% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 5.31% | 5.37% | 5.08% | 3.40% | 5.14% | 5.35% | 5.97% | 6.98% | 3.55% | 0.00% | 0.00% | 0.00% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.43% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% | 5.69% | 6.10% |
Drawdowns
FALN vs. HYG - Drawdown Comparison
The maximum FALN drawdown since its inception was -29.22%, smaller than the maximum HYG drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for FALN and HYG. For additional features, visit the drawdowns tool.
Volatility
FALN vs. HYG - Volatility Comparison
iShares Fallen Angels USD Bond ETF (FALN) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG) have volatilities of 1.59% and 1.57%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.