FALN vs. HYGH
FALN (iShares Fallen Angels USD Bond ETF) and HYGH (iShares Interest Rate Hedged High Yield Bond ETF) are both High Yield Bonds funds from iShares - FALN tracks the Bloomberg US High Yield Fallen Angel 3% Capped Index while HYGH tracks the Markit iBoxx USD Liquid High Yield Interest Hedged Index. Both are passively managed. Over the past 10 years, FALN returned 6.20%/yr vs 6.18%/yr for HYGH. A 0.66 correlation means they provide meaningful diversification when combined. FALN charges 0.25%/yr vs 0.52%/yr for HYGH.
Performance
FALN vs. HYGH - Performance Comparison
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Returns By Period
In the year-to-date period, FALN achieves a 2.18% return, which is significantly lower than HYGH's 3.61% return. Both investments have delivered pretty close results over the past 10 years, with FALN having a 6.20% annualized return and HYGH not far behind at 6.18%.
FALN
- 1D
- -0.30%
- 1M
- 0.19%
- 6M
- 1.29%
- YTD
- 2.18%
- 1Y
- 6.90%
- 3Y*
- 8.69%
- 5Y*
- 3.46%
- 10Y*
- 6.20%
HYGH
- 1D
- 0.03%
- 1M
- 0.36%
- 6M
- 3.14%
- YTD
- 3.61%
- 1Y
- 7.17%
- 3Y*
- 9.30%
- 5Y*
- 6.95%
- 10Y*
- 6.18%
FALN vs. HYGH - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 2.18% | 8.92% | 7.68% | 13.47% | -13.79% | 5.40% | 14.85% | 17.42% | -4.97% | 8.70% |
HYGH iShares Interest Rate Hedged High Yield Bond ETF | 3.61% | 6.94% | 11.22% | 12.17% | -0.92% | 5.82% | 0.54% | 11.09% | -0.85% | 6.38% |
Correlation
The correlation between FALN and HYGH is 0.58, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.58 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.59 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.69 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.65 |
Correlation (All Time) Calculated using the full available price history since Jun 17, 2016 | 0.66 |
The correlation between FALN and HYGH shifts across timeframes, from 0.58 (1 year) to 0.69 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
FALN vs. HYGH — Risk / Return Rank
FALN
HYGH
FALN vs. HYGH - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Fallen Angels USD Bond ETF (FALN) and iShares Interest Rate Hedged High Yield Bond ETF (HYGH). 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 | HYGH | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.47 | ||
| Sortino ratioReturn per unit of downside risk | -0.82 | ||
| Omega ratioGain probability vs. loss probability | 1.29 | 1.37 | -0.08 |
| Calmar ratioReturn relative to maximum drawdown | 1.75 | 4.44 | -2.69 |
| Martin ratioReturn relative to average drawdown | 7.30 | 17.40 | -10.10 |
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Drawdowns
FALN vs. HYGH - Drawdown Comparison
The maximum FALN drawdown since its inception was -29.22%, which is greater than HYGH's maximum drawdown of -23.88%. Use the drawdown chart below to compare losses from any high point for FALN and HYGH.
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Drawdown Indicators
| FALN | HYGH | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.22% | -23.88% | -5.34% |
Max Drawdown (1Y)Largest decline over 1 year | -3.96% | -1.62% | -2.34% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -8.06% | +2.14% |
Max Drawdown (5Y)Largest decline over 5 years | -18.78% | -8.24% | -10.54% |
Max Drawdown (10Y)Largest decline over 10 years | -29.22% | -23.88% | -5.34% |
Current DrawdownCurrent decline from peak | -0.75% | -0.01% | -0.74% |
Average DrawdownAverage peak-to-trough decline | -3.29% | -2.21% | -1.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.95% | 0.41% | +0.54% |
Volatility
FALN vs. HYGH - Volatility Comparison
iShares Fallen Angels USD Bond ETF (FALN) has a higher volatility of 1.03% compared to iShares Interest Rate Hedged High Yield Bond ETF (HYGH) at 0.60%. This indicates that FALN's price experiences larger fluctuations and is considered to be riskier than HYGH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FALN | HYGH | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.03% | 0.60% | +0.43% |
Volatility (6M)Calculated over the trailing 6-month period | 3.74% | 2.74% | +1.00% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.57% | 3.63% | +0.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.33% | 7.07% | +0.26% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.86% | 8.22% | +0.64% |
FALN vs. HYGH - Expense Ratio Comparison
FALN has a 0.25% expense ratio, which is lower than HYGH's 0.52% expense ratio.
Dividends
FALN vs. HYGH - Dividend Comparison
FALN's dividend yield for the trailing twelve months is around 6.49%, less than HYGH's 6.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 6.49% | 6.31% | 6.24% | 5.37% | 5.08% | 3.40% | 5.14% | 5.35% | 5.97% | 6.98% | 3.55% | 0.00% |
HYGH iShares Interest Rate Hedged High Yield Bond ETF | 6.57% | 6.86% | 7.85% | 8.95% | 6.21% | 3.74% | 4.06% | 4.89% | 6.45% | 4.79% | 4.60% | 5.75% |
Frequently Asked Questions
FALN and HYGH have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FALN has higher volatility (1.03%) compared to HYGH (0.60%). In terms of maximum drawdown, FALN dropped -29.22% vs HYGH's -23.88%.
On 10-year performance, FALN leads with 6.20% vs 6.18% for HYGH. On fees, FALN is cheaper at 0.25% per year. On volatility, HYGH has been the lower-risk option at 0.60%. 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 6.20% return vs 6.18%. 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 0.52% for HYGH.
HYGH has the higher dividend yield at 6.57%, compared with 6.49% for FALN.
FALN tracks Bloomberg US High Yield Fallen Angel 3% Capped Index, while HYGH tracks Markit iBoxx USD Liquid High Yield Interest Hedged Index. Their fees differ too: 0.25% for FALN and 0.52% for HYGH.
HYGH currently has the higher Sharpe Ratio (1.99 vs 1.52), 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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