FGD vs. HYG
FGD (First Trust Dow Jones Global Select Dividend Index Fund) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - FGD is a Global Equities fund tracking the Dow Jones Global Select Dividend Index, while HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 10 years, FGD returned 10.25%/yr vs 5.00%/yr for HYG. A 0.60 correlation means they provide meaningful diversification when combined. FGD charges 0.59%/yr vs 0.49%/yr for HYG.
Performance
FGD vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, FGD achieves a 8.77% return, which is significantly higher than HYG's 1.56% return. Over the past 10 years, FGD has outperformed HYG with an annualized return of 10.25%, while HYG has yielded a comparatively lower 5.00% annualized return.
FGD
- 1D
- -0.91%
- 1M
- -3.22%
- YTD
- 8.77%
- 6M
- 8.41%
- 1Y
- 27.05%
- 3Y*
- 22.21%
- 5Y*
- 10.63%
- 10Y*
- 10.25%
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%
FGD vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
FGD First Trust Dow Jones Global Select Dividend Index Fund | 8.77% | 44.42% | 5.71% | 8.20% | -7.25% | 20.83% | -5.23% | 20.64% | -12.49% | 17.87% |
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 FGD and HYG is 0.65, 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 | 0.65 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.62 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.63 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.64 |
Correlation (All Time) Calculated using the full available price history since Nov 27, 2007 | 0.60 |
The correlation between FGD and HYG has been stable across timeframes, ranging from 0.60 to 0.65 - a consistent structural relationship.
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Return for Risk
FGD vs. HYG — Risk / Return Rank
FGD
HYG
FGD vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Dow Jones Global Select Dividend Index Fund (FGD) 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.
| FGD | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.59 | ||
| Sortino ratioReturn per unit of downside risk | +0.61 | ||
| Omega ratioGain probability vs. loss probability | 1.39 | 1.29 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.77 | 2.55 | +0.22 |
| Martin ratioReturn relative to average drawdown | 9.57 | 11.18 | -1.61 |
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Drawdowns
FGD vs. HYG - Drawdown Comparison
The maximum FGD drawdown since its inception was -68.05%, which is greater than HYG's maximum drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for FGD and HYG.
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Drawdown Indicators
| FGD | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -68.05% | -34.25% | -33.80% |
Max Drawdown (1Y)Largest decline over 1 year | -9.82% | -2.34% | -7.48% |
Max Drawdown (3Y)Largest decline over 3 years | -11.50% | -4.56% | -6.94% |
Max Drawdown (5Y)Largest decline over 5 years | -28.68% | -15.79% | -12.89% |
Max Drawdown (10Y)Largest decline over 10 years | -44.84% | -22.03% | -22.81% |
Current DrawdownCurrent decline from peak | -4.09% | -0.21% | -3.88% |
Average DrawdownAverage peak-to-trough decline | -12.54% | -3.23% | -9.31% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.83% | 0.53% | +2.30% |
Volatility
FGD vs. HYG - Volatility Comparison
First Trust Dow Jones Global Select Dividend Index Fund (FGD) has a higher volatility of 3.65% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.13%. This indicates that FGD's price experiences larger fluctuations and is considered to be riskier than HYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| FGD | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.65% | 1.13% | +2.52% |
Volatility (6M)Calculated over the trailing 6-month period | 10.17% | 3.11% | +7.06% |
Volatility (1Y)Calculated over the trailing 1-year period | 12.82% | 3.88% | +8.94% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 14.93% | 7.54% | +7.39% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.00% | 8.27% | +9.73% |
FGD vs. HYG - Expense Ratio Comparison
FGD has a 0.59% expense ratio, which is higher than HYG's 0.49% expense ratio.
Dividends
FGD vs. HYG - Dividend Comparison
FGD's dividend yield for the trailing twelve months is around 5.20%, less than HYG's 5.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FGD First Trust Dow Jones Global Select Dividend Index Fund | 5.20% | 5.62% | 5.87% | 6.44% | 5.74% | 5.35% | 6.17% | 5.19% | 5.88% | 4.01% | 4.36% | 5.07% |
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
FGD and HYG have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FGD has higher volatility (3.65%) compared to HYG (1.13%). In terms of maximum drawdown, FGD dropped -68.05% vs HYG's -34.25%.
On 10-year performance, FGD leads with 10.25% vs 5.00% for HYG. On fees, HYG is cheaper at 0.49% per year. On volatility, HYG has been the lower-risk option at 1.13%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, FGD has performed better with a 10.25% return vs 5.00%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HYG is cheaper with a 0.49% expense ratio, compared with 0.59% for FGD.
HYG has the higher dividend yield at 5.91%, compared with 5.20% for FGD.
FGD is categorized as Global Equities, while HYG is High Yield Bonds. FGD tracks Dow Jones Global Select Dividend Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.59% for FGD and 0.49% for HYG.
FGD currently has the higher Sharpe Ratio (2.13 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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