FIHBX vs. VWEHX

Last updated Jul 15, 2026

FIHBX (Federated Hermes Institutional High Yield Bond Fund) and VWEHX (Vanguard High-Yield Corporate Fund Investor Shares) are both High Yield Bonds funds. Over the past 10 years, FIHBX returned 4.71%/yr vs 4.85%/yr for VWEHX. Their correlation of 0.82 suggests significant overlap in exposure. FIHBX charges 0.50%/yr vs 0.22%/yr for VWEHX.

Performance

FIHBX vs. VWEHX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Federated Hermes Institutional High Yield Bond Fund (FIHBX) and Vanguard High-Yield Corporate Fund Investor Shares (VWEHX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FIHBX achieves a 1.31% return, which is significantly higher than VWEHX's 1.13% return. Both investments have delivered pretty close results over the past 10 years, with FIHBX having a 4.71% annualized return and VWEHX not far ahead at 4.85%.

FIHBX

• 1D: -0.22%
• 1M: 0.15%
• 6M: 1.31%
• YTD: 1.31%
• 1Y: 5.22%
• 3Y*: 7.64%
• 5Y*: 3.24%
• 10Y*: 4.71%

VWEHX

• 1D: -0.18%
• 1M: 0.16%
• 6M: 1.13%
• YTD: 1.13%
• 1Y: 5.65%
• 3Y*: 7.77%
• 5Y*: 3.84%
• 10Y*: 4.85%

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

FIHBX vs. VWEHX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FIHBX Federated Hermes Institutional High Yield Bond Fund	1.31%	8.59%	6.40%	13.17%	-12.64%	3.92%	5.99%	15.01%	-2.80%	7.19%
VWEHX Vanguard High-Yield Corporate Fund Investor Shares	1.13%	9.38%	6.33%	11.66%	-9.04%	2.97%	5.30%	15.81%	-2.93%	7.05%

Correlation

The correlation between FIHBX and VWEHX is 0.53, 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	0.53
Correlation (3Y) Calculated over the trailing 3-year period	0.69
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (10Y) Calculated over the trailing 10-year period	0.82
Correlation (All Time) Calculated using the full available price history since Nov 4, 2002	0.82

Over the past year, the correlation between FIHBX and VWEHX has dropped to 0.53 - well below their long-term average of 0.82, suggesting their price drivers have been diverging.

Return for Risk

FIHBX vs. VWEHX — Risk / Return Rank

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

FIHBX

FIHBX Risk / Return Rank: 63
FIHBX Sharpe Ratio Rank: 46
FIHBX Sortino Ratio Rank: 69
FIHBX Omega Ratio Rank: 77
FIHBX Calmar Ratio Rank: 47
FIHBX Martin Ratio Rank: 78

VWEHX

VWEHX Risk / Return Rank: 69
VWEHX Sharpe Ratio Rank: 57
VWEHX Sortino Ratio Rank: 78
VWEHX Omega Ratio Rank: 80
VWEHX Calmar Ratio Rank: 50
VWEHX Martin Ratio Rank: 78

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.

FIHBX vs. VWEHX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Federated Hermes Institutional High Yield Bond Fund (FIHBX) and Vanguard High-Yield Corporate Fund Investor Shares (VWEHX). 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.

	FIHBX	VWEHX	Difference
Sharpe ratio: Return per unit of total volatility	1.51	1.68	-0.17
Sortino ratio: Return per unit of downside risk	2.61	2.88	-0.27
Omega ratio: Gain probability vs. loss probability	1.37	1.40	-0.03
Calmar ratio: Return relative to maximum drawdown	2.09	2.17	-0.08
Martin ratio: Return relative to average drawdown	10.97	11.09	-0.13

FIHBX vs. VWEHX - Sharpe Ratio Comparison

The current FIHBX Sharpe Ratio is 1.51, which is comparable to the VWEHX Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of FIHBX and VWEHX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FIHBX vs. VWEHX - Drawdown Comparison

The maximum FIHBX drawdown since its inception was -31.05%, roughly equal to the maximum VWEHX drawdown of -30.17%. Use the drawdown chart below to compare losses from any high point for FIHBX and VWEHX.

Drawdown Indicators

	FIHBX	VWEHX	Difference
Max Drawdown Largest peak-to-trough decline	-31.05%	-30.17%	-0.88%
Max Drawdown (1Y) Largest decline over 1 year	-2.45%	-2.52%	+0.07%
Max Drawdown (3Y) Largest decline over 3 years	-3.60%	-3.33%	-0.27%
Max Drawdown (5Y) Largest decline over 5 years	-16.35%	-13.83%	-2.52%
Max Drawdown (10Y) Largest decline over 10 years	-21.67%	-19.69%	-1.98%
Current Drawdown Current decline from peak	-0.34%	-0.55%	+0.21%
Average Drawdown Average peak-to-trough decline	-2.29%	-4.28%	+1.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.47%	0.49%	-0.02%

Volatility

FIHBX vs. VWEHX - Volatility Comparison

The current volatility for Federated Hermes Institutional High Yield Bond Fund (FIHBX) is 0.80%, while Vanguard High-Yield Corporate Fund Investor Shares (VWEHX) has a volatility of 0.87%. This indicates that FIHBX experiences smaller price fluctuations and is considered to be less risky than VWEHX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FIHBX	VWEHX	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.80%	0.87%	-0.07%
Volatility (6M) Calculated over the trailing 6-month period	2.66%	2.64%	+0.02%
Volatility (1Y) Calculated over the trailing 1-year period	3.41%	3.27%	+0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.20%	4.92%	+0.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	5.72%	5.24%	+0.48%

FIHBX vs. VWEHX - Expense Ratio Comparison

FIHBX has a 0.50% expense ratio, which is higher than VWEHX's 0.22% expense ratio.

Dividends

FIHBX vs. VWEHX - Dividend Comparison

FIHBX's dividend yield for the trailing twelve months is around 6.49%, more than VWEHX's 6.29% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FIHBX Federated Hermes Institutional High Yield Bond Fund	6.49%	6.29%	5.94%	5.93%	4.58%	4.25%	5.14%	5.79%	6.24%	5.55%	5.75%	6.46%
VWEHX Vanguard High-Yield Corporate Fund Investor Shares	6.29%	6.15%	6.11%	5.68%	5.11%	3.43%	4.62%	5.24%	5.94%	5.29%	5.41%	6.42%

Frequently Asked Questions

Can I hold both FIHBX and VWEHX in my portfolio?

FIHBX and VWEHX have a correlation of 0.53, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FIHBX or VWEHX?

VWEHX has higher volatility (0.87%) compared to FIHBX (0.80%). In terms of maximum drawdown, FIHBX dropped -31.05% vs VWEHX's -30.17%.

Which has better risk-adjusted returns?

VWEHX currently has the higher Sharpe Ratio (1.68 vs 1.51), 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.