FIAX vs. HYG

Last updated Jun 4, 2026

FIAX (Nicholas Fixed Income Alternative ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - FIAX is a Nontraditional Bonds fund actively managed by Nicholas, while HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. FIAX is actively managed, while HYG is passively managed. Over the past 3 years, FIAX returned 3.47%/yr vs 8.48%/yr for HYG. At a 0.46 correlation, their price movements are largely independent. FIAX charges 1.04%/yr vs 0.49%/yr for HYG.

Performance

FIAX vs. HYG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nicholas Fixed Income Alternative ETF (FIAX) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FIAX achieves a 1.22% return, which is significantly lower than HYG's 1.32% return.

FIAX

• 1D: -0.14%
• 1M: 0.50%
• YTD: 1.22%
• 6M: 1.19%
• 1Y: 4.66%
• 3Y*: 3.47%
• 5Y*: —
• 10Y*: —

HYG

• 1D: -0.28%
• 1M: 0.36%
• YTD: 1.32%
• 6M: 1.73%
• 1Y: 6.51%
• 3Y*: 8.48%
• 5Y*: 3.77%
• 10Y*: 4.94%

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

FIAX vs. HYG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
FIAX Nicholas Fixed Income Alternative ETF	1.22%	2.33%	4.67%	3.44%	-0.30%
HYG iShares iBoxx $ High Yield Corporate Bond ETF	1.32%	8.59%	7.97%	11.54%	-1.76%

Correlation

The correlation between FIAX and HYG is 0.61, 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	0.61
Correlation (3Y) Calculated over the trailing 3-year period	0.51
Correlation (All Time) Calculated using the full available price history since Dec 1, 2022	0.46

The correlation between FIAX and HYG shifts across timeframes, from 0.46 (all time) to 0.61 (1 year), reflecting how their relationship changes across market environments.

FIAX vs. HYG - Sectors Allocation Comparison

Sectors	FIAX	HYG
Technology	35.6%	-
Financial Services	11.8%	-
Communication Services	11.2%	-
Consumer Cyclical	10.1%	-
Healthcare	8.5%	-
Industrials	8.3%	-
Consumer Defensive	4.9%	-
Energy	3.5%	-
Utilities	2.4%	99.6%
Real Estate	1.9%	0.4%
Basic Materials	1.8%	-

Return for Risk

FIAX vs. HYG — Risk / Return Rank

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

FIAX

FIAX Risk / Return Rank: 35
FIAX Sharpe Ratio Rank: 31
FIAX Sortino Ratio Rank: 31
FIAX Omega Ratio Rank: 31
FIAX Calmar Ratio Rank: 39
FIAX Martin Ratio Rank: 44

HYG

HYG Risk / Return Rank: 55
HYG Sharpe Ratio Rank: 49
HYG Sortino Ratio Rank: 52
HYG Omega Ratio Rank: 52
HYG Calmar Ratio Rank: 55
HYG Martin Ratio Rank: 66

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.

FIAX vs. HYG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nicholas Fixed Income Alternative ETF (FIAX) 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.

	FIAX	HYG	Difference
Sharpe ratio: Return per unit of total volatility	1.13	1.72	-0.59
Sortino ratio: Return per unit of downside risk	1.67	2.59	-0.92
Omega ratio: Gain probability vs. loss probability	1.21	1.33	-0.12
Calmar ratio: Return relative to maximum drawdown	1.95	2.79	-0.85
Martin ratio: Return relative to average drawdown	7.11	12.34	-5.23
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FIAX vs. HYG - Sharpe Ratio Comparison

The current FIAX Sharpe Ratio is 1.13, which is lower than the HYG Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of FIAX and HYG, 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

	FIAX	HYG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.13	1.72	-0.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.50	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.60	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.81	0.46	+0.35

Drawdowns

FIAX vs. HYG - Drawdown Comparison

The maximum FIAX drawdown since its inception was -6.26%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for FIAX and HYG.

Drawdown Indicators

	FIAX	HYG	Difference
Max Drawdown Largest peak-to-trough decline	-6.26%	-34.25%	+27.99%
Max Drawdown (1Y) Largest decline over 1 year	-2.40%	-2.34%	-0.06%
Max Drawdown (3Y) Largest decline over 3 years	-6.26%	-4.56%	-1.70%
Max Drawdown (5Y) Largest decline over 5 years	—	-15.79%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-22.03%	—
Current Drawdown Current decline from peak	-0.32%	-0.28%	-0.04%
Average Drawdown Average peak-to-trough decline	-0.85%	-3.24%	+2.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.66%	0.53%	+0.13%

Volatility

FIAX vs. HYG - Volatility Comparison

Nicholas Fixed Income Alternative ETF (FIAX) has a higher volatility of 1.43% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.21%. This indicates that FIAX'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.

Volatility by Period

	FIAX	HYG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.43%	1.21%	+0.22%
Volatility (6M) Calculated over the trailing 6-month period	3.40%	3.01%	+0.39%
Volatility (1Y) Calculated over the trailing 1-year period	4.14%	3.81%	+0.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.05%	7.53%	-3.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.05%	8.29%	-4.24%

FIAX vs. HYG - Expense Ratio Comparison

FIAX has a 1.04% expense ratio, which is higher than HYG's 0.49% expense ratio.

Dividends

FIAX vs. HYG - Dividend Comparison

FIAX's dividend yield for the trailing twelve months is around 8.19%, more than HYG's 5.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FIAX Nicholas Fixed Income Alternative ETF	8.19%	8.17%	8.11%	4.81%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
HYG iShares iBoxx $ High Yield Corporate Bond ETF	5.92%	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

Can I hold both FIAX and HYG in my portfolio?

FIAX and HYG have a correlation of 0.61, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FIAX or HYG?

FIAX has higher volatility (1.43%) compared to HYG (1.21%). In terms of maximum drawdown, FIAX dropped -6.26% vs HYG's -34.25%.

Which ETF is better, FIAX or HYG?

On 3-year performance, HYG leads with 8.48% vs 3.47% for FIAX. On fees, HYG is cheaper at 0.49% per year. On volatility, HYG has been the lower-risk option at 1.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FIAX or HYG?

Over the 3-year period, HYG has performed better with a 8.48% return vs 3.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FIAX or HYG?

HYG is cheaper with a 0.49% expense ratio, compared with 1.04% for FIAX.

Which ETF pays a higher dividend yield, FIAX or HYG?

FIAX has the higher dividend yield at 8.19%, compared with 5.92% for HYG.

What is the main difference between FIAX and HYG?

FIAX is categorized as Nontraditional Bonds, while HYG is High Yield Bonds. They also come from different issuers: Nicholas and iShares. Their fees differ too: 1.04% for FIAX and 0.49% for HYG.

Which has better risk-adjusted returns?

HYG currently has the higher Sharpe Ratio (1.72 vs 1.13), 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.