FALN vs. HYG
FALN (iShares Fallen Angels USD Bond ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both High Yield Bonds funds from iShares - FALN tracks the Bloomberg US High Yield Fallen Angel 3% Capped Index while HYG tracks the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 10 years, FALN returned 6.60%/yr vs 5.00%/yr for HYG. Their correlation of 0.84 suggests significant overlap in exposure. FALN charges 0.25%/yr vs 0.49%/yr for HYG.
Performance
FALN vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, FALN achieves a 2.24% return, which is significantly higher than HYG's 1.56% return. Over the past 10 years, FALN has outperformed HYG with an annualized return of 6.60%, while HYG has yielded a comparatively lower 5.00% annualized return.
FALN
- 1D
- 0.00%
- 1M
- 1.07%
- YTD
- 2.24%
- 6M
- 2.42%
- 1Y
- 7.88%
- 3Y*
- 9.39%
- 5Y*
- 3.74%
- 10Y*
- 6.60%
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%
FALN vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 2.24% | 8.92% | 7.68% | 13.47% | -13.79% | 5.40% | 14.85% | 17.42% | -4.97% | 8.70% |
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 FALN and HYG is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.93 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.94 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Jun 17, 2016 | 0.84 |
The correlation between FALN and HYG has been stable across timeframes, ranging from 0.84 to 0.94 - a consistent structural relationship.
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Return for Risk
FALN vs. HYG — Risk / Return Rank
FALN
HYG
FALN vs. HYG - Risk-Adjusted Trends 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.
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 | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.18 | ||
| Sortino ratioReturn per unit of downside risk | +0.18 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.29 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.00 | 2.55 | -0.55 |
| Martin ratioReturn relative to average drawdown | 8.32 | 11.18 | -2.85 |
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Drawdowns
FALN vs. HYG - Drawdown Comparison
The maximum FALN drawdown since its inception was -29.22%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for FALN and HYG.
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Drawdown Indicators
| FALN | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.22% | -34.25% | +5.03% |
Max Drawdown (1Y)Largest decline over 1 year | -3.96% | -2.34% | -1.62% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -4.56% | -1.36% |
Max Drawdown (5Y)Largest decline over 5 years | -18.78% | -15.79% | -2.99% |
Max Drawdown (10Y)Largest decline over 10 years | -29.22% | -22.03% | -7.19% |
Current DrawdownCurrent decline from peak | -0.11% | -0.21% | +0.10% |
Average DrawdownAverage peak-to-trough decline | -3.31% | -3.23% | -0.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.95% | 0.53% | +0.42% |
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 1.18% and 1.13%, 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.
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Volatility by Period
| FALN | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.18% | 1.13% | +0.05% |
Volatility (6M)Calculated over the trailing 6-month period | 3.72% | 3.11% | +0.61% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.60% | 3.88% | +0.72% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.33% | 7.54% | -0.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.92% | 8.27% | +0.65% |
FALN vs. HYG - Expense Ratio Comparison
FALN has a 0.25% expense ratio, which is lower than HYG's 0.49% expense ratio.
Dividends
FALN vs. HYG - Dividend Comparison
FALN's dividend yield for the trailing twelve months is around 6.42%, more than HYG's 5.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 6.42% | 6.31% | 6.24% | 5.37% | 5.08% | 3.40% | 5.14% | 5.35% | 5.97% | 6.98% | 3.55% | 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
With a correlation of 0.93, FALN and HYG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.
FALN has higher volatility (1.18%) compared to HYG (1.13%). In terms of maximum drawdown, FALN dropped -29.22% vs HYG's -34.25%.
On 10-year performance, FALN leads with 6.60% vs 5.00% for HYG. On fees, FALN is cheaper at 0.25% per year. Their volatility is very similar. 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 6.60% return vs 5.00%. 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 0.49% for HYG.
FALN has the higher dividend yield at 6.42%, compared with 5.91% for HYG.
FALN tracks Bloomberg US High Yield Fallen Angel 3% Capped Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. Their fees differ too: 0.25% for FALN and 0.49% for HYG.
FALN currently has the higher Sharpe Ratio (1.72 vs 1.54), 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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