FALN vs. HYGI

Last updated Jun 4, 2026

FALN (iShares Fallen Angels USD Bond ETF) and HYGI (iShares Inflation Hedged High Yield Bond ETF) are both exchange-traded funds - FALN is a High Yield Bonds fund tracking the Bloomberg US High Yield Fallen Angel 3% Capped Index, while HYGI is a Inflation-Protected Bonds fund tracking the BlackRock Inflation Hedged High Yield Bond Index - Benchmark TR Gross. Both are passively managed. A 0.78 correlation means they provide meaningful diversification when combined. FALN charges 0.25%/yr vs 0.52%/yr for HYGI.

Performance

FALN vs. HYGI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Fallen Angels USD Bond ETF (FALN) and iShares Inflation Hedged High Yield Bond ETF (HYGI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

FALN

• 1D: -0.22%
• 1M: 0.68%
• YTD: 1.56%
• 6M: 1.36%
• 1Y: 8.66%
• 3Y*: 9.18%
• 5Y*: 3.78%
• 10Y*: —

HYGI

• 1D: —
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

FALN vs. HYGI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FALN iShares Fallen Angels USD Bond ETF	1.56%	8.92%	7.68%	13.47%	1.01%
HYGI iShares Inflation Hedged High Yield Bond ETF	0.00%	6.20%	9.16%	11.71%	0.65%

Correlation

The correlation between FALN and HYGI is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.72
Correlation (All Time) Calculated using the full available price history since Jun 27, 2022	0.78

Over the past year, the correlation between FALN and HYGI has dropped to 0.29 - well below their long-term average of 0.78, suggesting their price drivers have been diverging.

FALN vs. HYGI - Sectors Allocation Comparison

Sectors	FALN	HYGI
Real Estate	100.0%	0.4%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Technology	-	-
Utilities	-	99.6%

Return for Risk

FALN vs. HYGI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FALN

FALN Risk / Return Rank: 54
FALN Sharpe Ratio Rank: 55
FALN Sortino Ratio Rank: 57
FALN Omega Ratio Rank: 60
FALN Calmar Ratio Rank: 44
FALN Martin Ratio Rank: 53

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FALN vs. HYGI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Fallen Angels USD Bond ETF (FALN) and iShares Inflation Hedged High Yield Bond ETF (HYGI). 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.

	FALN	HYGI	Difference
Sharpe ratio Return per unit of total volatility	1.91	—	—
Sortino ratio Return per unit of downside risk	2.78	—	—
Omega ratio Gain probability vs. loss probability	1.37	—	—
Calmar ratio Return relative to maximum drawdown	2.20	—	—
Martin ratio Return relative to average drawdown	9.17	—	—
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

Sharpe Ratios by Period

	FALN	HYGI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.91	—	—
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.52	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.74	—	—

Drawdowns

Drawdown Indicators

	FALN	HYGI	Difference
Max Drawdown Largest peak-to-trough decline	-29.22%	—	—
Max Drawdown (1Y) Largest decline over 1 year	-3.96%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-5.92%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-18.78%	—	—
Current Drawdown Current decline from peak	-0.26%	—	—
Average Drawdown Average peak-to-trough decline	-3.32%	—	—
Ulcer Index Depth and duration of drawdowns from previous peaks	0.95%	—	—

Volatility

Volatility by Period

	FALN	HYGI	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.38%	—	—
Volatility (6M) Calculated over the trailing 6-month period	3.64%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	4.54%	—	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.31%	—	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.95%	—	—

FALN vs. HYGI - Expense Ratio Comparison

FALN has a 0.25% expense ratio, which is lower than HYGI's 0.52% expense ratio.

Dividends

FALN vs. HYGI - Dividend Comparison

FALN's dividend yield for the trailing twelve months is around 6.46%, more than HYGI's 0.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
FALN iShares Fallen Angels USD Bond ETF	6.46%	6.31%	6.24%	5.37%	5.08%	3.40%	5.14%	5.35%	5.97%	6.98%	3.55%
HYGI iShares Inflation Hedged High Yield Bond ETF	0.97%	3.41%	6.08%	6.22%	3.19%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FALN and HYGI in my portfolio?

FALN and HYGI have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, FALN or HYGI?

On fees, FALN is cheaper at 0.25% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, FALN or HYGI?

FALN is cheaper with a 0.25% expense ratio, compared with 0.52% for HYGI.

Which ETF pays a higher dividend yield, FALN or HYGI?

FALN has the higher dividend yield at 6.46%, compared with 0.97% for HYGI.

What is the main difference between FALN and HYGI?

FALN is categorized as High Yield Bonds, while HYGI is Inflation-Protected Bonds. FALN tracks Bloomberg US High Yield Fallen Angel 3% Capped Index, while HYGI tracks BlackRock Inflation Hedged High Yield Bond Index - Benchmark TR Gross. Their fees differ too: 0.25% for FALN and 0.52% for HYGI.