FLHY vs. HYDB

Last updated Jun 4, 2026

FLHY (Franklin Liberty High Yield Corporate ETF) and HYDB (iShares High Yield Bond Factor ETF) are both High Yield Bonds funds. FLHY is actively managed, while HYDB is passively managed. Over the past 5 years, FLHY returned 4.73%/yr vs 4.67%/yr for HYDB. Their correlation of 0.86 suggests significant overlap in exposure. FLHY charges 0.40%/yr vs 0.35%/yr for HYDB.

Performance

FLHY vs. HYDB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin Liberty High Yield Corporate ETF (FLHY) and iShares High Yield Bond Factor ETF (HYDB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLHY achieves a 1.75% return, which is significantly higher than HYDB's 1.32% return.

FLHY

• 1D: -0.19%
• 1M: 0.40%
• YTD: 1.75%
• 6M: 2.35%
• 1Y: 7.80%
• 3Y*: 9.26%
• 5Y*: 4.73%
• 10Y*: —

HYDB

• 1D: -0.21%
• 1M: 0.39%
• YTD: 1.32%
• 6M: 1.87%
• 1Y: 7.20%
• 3Y*: 9.11%
• 5Y*: 4.67%
• 10Y*: —

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

FLHY vs. HYDB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FLHY Franklin Liberty High Yield Corporate ETF	1.75%	9.26%	8.70%	13.40%	-10.45%	4.27%	7.77%	16.39%	-1.31%
HYDB iShares High Yield Bond Factor ETF	1.32%	8.10%	9.11%	14.02%	-9.99%	5.14%	7.39%	16.13%	-2.66%

Correlation

The correlation between FLHY and HYDB is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (All Time) Calculated using the full available price history since Jun 4, 2018	0.86

The correlation between FLHY and HYDB has been stable across timeframes, ranging from 0.86 to 0.93 - a consistent structural relationship.

Return for Risk

FLHY vs. HYDB — Risk / Return Rank

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

FLHY

FLHY Risk / Return Rank: 67
FLHY Sharpe Ratio Rank: 60
FLHY Sortino Ratio Rank: 67
FLHY Omega Ratio Rank: 66
FLHY Calmar Ratio Rank: 65
FLHY Martin Ratio Rank: 78

HYDB

HYDB Risk / Return Rank: 57
HYDB Sharpe Ratio Rank: 55
HYDB Sortino Ratio Rank: 60
HYDB Omega Ratio Rank: 59
HYDB Calmar Ratio Rank: 51
HYDB Martin Ratio Rank: 62

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.

FLHY vs. HYDB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin Liberty High Yield Corporate ETF (FLHY) and iShares High Yield Bond Factor ETF (HYDB). 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.

	FLHY	HYDB	Difference
Sharpe ratio Return per unit of total volatility	2.05	1.91	+0.13
Sortino ratio Return per unit of downside risk	3.13	2.88	+0.25
Omega ratio Gain probability vs. loss probability	1.40	1.37	+0.03
Calmar ratio Return relative to maximum drawdown	3.22	2.55	+0.67
Martin ratio Return relative to average drawdown	15.12	11.30	+3.83
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLHY vs. HYDB - Sharpe Ratio Comparison

The current FLHY Sharpe Ratio is 2.05, which is comparable to the HYDB Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of FLHY and HYDB, 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

	FLHY	HYDB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.05	1.91	+0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.69	0.67	+0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.73	0.71	+0.02

Drawdowns

FLHY vs. HYDB - Drawdown Comparison

The maximum FLHY drawdown since its inception was -22.58%, roughly equal to the maximum HYDB drawdown of -21.58%. Use the drawdown chart below to compare losses from any high point for FLHY and HYDB.

Drawdown Indicators

	FLHY	HYDB	Difference
Max Drawdown Largest peak-to-trough decline	-22.58%	-21.58%	-1.00%
Max Drawdown (1Y) Largest decline over 1 year	-2.43%	-2.83%	+0.40%
Max Drawdown (3Y) Largest decline over 3 years	-4.49%	-5.58%	+1.09%
Max Drawdown (5Y) Largest decline over 5 years	-15.19%	-14.28%	-0.91%
Current Drawdown Current decline from peak	-0.19%	-0.21%	+0.02%
Average Drawdown Average peak-to-trough decline	-2.54%	-2.39%	-0.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.52%	0.64%	-0.12%

Volatility

FLHY vs. HYDB - Volatility Comparison

Franklin Liberty High Yield Corporate ETF (FLHY) has a higher volatility of 1.24% compared to iShares High Yield Bond Factor ETF (HYDB) at 1.13%. This indicates that FLHY's price experiences larger fluctuations and is considered to be riskier than HYDB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLHY	HYDB	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.24%	1.13%	+0.11%
Volatility (6M) Calculated over the trailing 6-month period	2.98%	2.93%	+0.05%
Volatility (1Y) Calculated over the trailing 1-year period	3.83%	3.79%	+0.04%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.94%	7.04%	-0.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.11%	7.76%	+0.35%

FLHY vs. HYDB - Expense Ratio Comparison

FLHY has a 0.40% expense ratio, which is higher than HYDB's 0.35% expense ratio.

Dividends

FLHY vs. HYDB - Dividend Comparison

FLHY's dividend yield for the trailing twelve months is around 6.47%, less than HYDB's 7.00% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLHY Franklin Liberty High Yield Corporate ETF	6.47%	6.53%	6.51%	6.26%	6.54%	5.76%	5.47%	5.61%	4.27%	0.00%
HYDB iShares High Yield Bond Factor ETF	7.00%	7.04%	6.95%	7.00%	6.30%	4.70%	5.81%	5.68%	6.16%	2.70%

Frequently Asked Questions

Can I hold both FLHY and HYDB in my portfolio?

With a correlation of 0.93, FLHY and HYDB move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FLHY or HYDB?

FLHY has higher volatility (1.24%) compared to HYDB (1.13%). In terms of maximum drawdown, FLHY dropped -22.58% vs HYDB's -21.58%.

Which ETF is better, FLHY or HYDB?

On 5-year performance, FLHY leads with 4.73% vs 4.67% for HYDB. On fees, HYDB is cheaper at 0.35% per year. On volatility, HYDB has been the lower-risk option at 1.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLHY or HYDB?

Over the 5-year period, FLHY has performed better with a 4.73% return vs 4.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLHY or HYDB?

HYDB is cheaper with a 0.35% expense ratio, compared with 0.40% for FLHY.

Which ETF pays a higher dividend yield, FLHY or HYDB?

HYDB has the higher dividend yield at 7.00%, compared with 6.47% for FLHY.

What is the main difference between FLHY and HYDB?

They also come from different issuers: Franklin Templeton and iShares. Their fees differ too: 0.40% for FLHY and 0.35% for HYDB.

Which has better risk-adjusted returns?

FLHY currently has the higher Sharpe Ratio (2.04 vs 1.91), 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.