FHYS vs. USHY

Last updated Jun 4, 2026

FHYS (Federated Hermes Short Duration High Yield ETF) and USHY (iShares Broad USD High Yield Corporate Bond ETF) are both High Yield Bonds funds. FHYS is actively managed, while USHY is passively managed. Over the past 3 years, FHYS returned 7.83%/yr vs 8.91%/yr for USHY. Their correlation of 0.88 suggests significant overlap in exposure. FHYS charges 0.51%/yr vs 0.15%/yr for USHY.

Performance

FHYS vs. USHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes Short Duration High Yield ETF (FHYS) and iShares Broad USD High Yield Corporate Bond ETF (USHY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with FHYS having a 1.48% return and USHY slightly lower at 1.42%.

FHYS

• 1D: -0.16%
• 1M: 0.46%
• YTD: 1.48%
• 6M: 1.89%
• 1Y: 6.49%
• 3Y*: 7.83%
• 5Y*: —
• 10Y*: —

USHY

• 1D: -0.27%
• 1M: 0.40%
• YTD: 1.42%
• 6M: 1.77%
• 1Y: 7.02%
• 3Y*: 8.91%
• 5Y*: 4.24%
• 10Y*: —

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

FHYS vs. USHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
FHYS Federated Hermes Short Duration High Yield ETF	1.48%	7.72%	7.23%	10.88%	-7.31%	0.98%
USHY iShares Broad USD High Yield Corporate Bond ETF	1.42%	8.81%	8.45%	12.73%	-11.18%	0.81%

Correlation

The correlation between FHYS and USHY is 0.82, 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	0.82
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (All Time) Calculated using the full available price history since Dec 20, 2021	0.88

The correlation between FHYS and USHY has been stable across timeframes, ranging from 0.82 to 0.88 - a consistent structural relationship.

FHYS vs. USHY - Sectors Allocation Comparison

Sectors	FHYS	USHY
Communication Services	91.7%	-
Industrials	8.3%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	99.2%
Financial Services	-	-
Healthcare	-	-
Real Estate	-	0.8%
Technology	-	-
Utilities	-	-

Return for Risk

FHYS vs. USHY — Risk / Return Rank

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

FHYS

FHYS Risk / Return Rank: 82
FHYS Sharpe Ratio Rank: 76
FHYS Sortino Ratio Rank: 85
FHYS Omega Ratio Rank: 85
FHYS Calmar Ratio Rank: 77
FHYS Martin Ratio Rank: 89

USHY

USHY Risk / Return Rank: 60
USHY Sharpe Ratio Rank: 55
USHY Sortino Ratio Rank: 61
USHY Omega Ratio Rank: 60
USHY Calmar Ratio Rank: 58
USHY Martin Ratio Rank: 69

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.

FHYS vs. USHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Short Duration High Yield ETF (FHYS) and iShares Broad USD High Yield Corporate Bond ETF (USHY). 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.

	FHYS	USHY	Difference
Sharpe ratio: Return per unit of total volatility	2.44	1.93	+0.51
Sortino ratio: Return per unit of downside risk	3.82	2.91	+0.91
Omega ratio: Gain probability vs. loss probability	1.52	1.37	+0.15
Calmar ratio: Return relative to maximum drawdown	3.92	2.90	+1.02
Martin ratio: Return relative to average drawdown	20.21	13.03	+7.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FHYS vs. USHY - Sharpe Ratio Comparison

The current FHYS Sharpe Ratio is 2.44, which is comparable to the USHY Sharpe Ratio of 1.93. The chart below compares the historical Sharpe Ratios of FHYS and USHY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FHYS	USHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.44	1.93	+0.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.58	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.91	0.58	+0.33

Drawdowns

FHYS vs. USHY - Drawdown Comparison

The maximum FHYS drawdown since its inception was -11.62%, smaller than the maximum USHY drawdown of -22.44%. Use the drawdown chart below to compare losses from any high point for FHYS and USHY.

Drawdown Indicators

	FHYS	USHY	Difference
Max Drawdown Largest peak-to-trough decline	-11.62%	-22.44%	+10.82%
Max Drawdown (1Y) Largest decline over 1 year	-1.66%	-2.43%	+0.77%
Max Drawdown (3Y) Largest decline over 3 years	-3.16%	-4.66%	+1.50%
Max Drawdown (5Y) Largest decline over 5 years	—	-15.56%	—
Current Drawdown Current decline from peak	-0.16%	-0.27%	+0.11%
Average Drawdown Average peak-to-trough decline	-2.29%	-2.67%	+0.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.32%	0.54%	-0.22%

Volatility

FHYS vs. USHY - Volatility Comparison

The current volatility for Federated Hermes Short Duration High Yield ETF (FHYS) is 0.76%, while iShares Broad USD High Yield Corporate Bond ETF (USHY) has a volatility of 1.13%. This indicates that FHYS experiences smaller price fluctuations and is considered to be less risky than USHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FHYS	USHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.76%	1.13%	-0.37%
Volatility (6M) Calculated over the trailing 6-month period	2.18%	2.91%	-0.73%
Volatility (1Y) Calculated over the trailing 1-year period	2.67%	3.65%	-0.98%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.95%	7.34%	-2.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.95%	8.25%	-3.30%

FHYS vs. USHY - Expense Ratio Comparison

FHYS has a 0.51% expense ratio, which is higher than USHY's 0.15% expense ratio.

Dividends

FHYS vs. USHY - Dividend Comparison

FHYS's dividend yield for the trailing twelve months is around 5.77%, less than USHY's 6.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FHYS Federated Hermes Short Duration High Yield ETF	5.77%	5.96%	6.42%	6.76%	6.25%	0.16%	0.00%	0.00%	0.00%	0.00%
USHY iShares Broad USD High Yield Corporate Bond ETF	6.92%	6.79%	6.89%	6.63%	6.08%	5.07%	5.30%	5.92%	6.30%	0.73%

Frequently Asked Questions

Can I hold both FHYS and USHY in my portfolio?

FHYS and USHY have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FHYS or USHY?

USHY has higher volatility (1.13%) compared to FHYS (0.76%). In terms of maximum drawdown, FHYS dropped -11.62% vs USHY's -22.44%.

Which ETF is better, FHYS or USHY?

On 3-year performance, USHY leads with 8.91% vs 7.83% for FHYS. On fees, USHY is cheaper at 0.15% per year. On volatility, FHYS has been the lower-risk option at 0.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FHYS or USHY?

Over the 3-year period, USHY has performed better with a 8.91% return vs 7.83%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FHYS or USHY?

USHY is cheaper with a 0.15% expense ratio, compared with 0.51% for FHYS.

Which ETF pays a higher dividend yield, FHYS or USHY?

USHY has the higher dividend yield at 6.92%, compared with 5.77% for FHYS.

What is the main difference between FHYS and USHY?

They also come from different issuers: Federated and iShares. Their fees differ too: 0.51% for FHYS and 0.15% for USHY.

Which has better risk-adjusted returns?

FHYS currently has the higher Sharpe Ratio (2.44 vs 1.93), 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.