FTHY vs. HYI

Last updated Jun 24, 2026

FTHY (First Trust High Yield Opportunities 2027 Term Fund) and HYI (Western Asset High Yield Opportunity Fund Inc) are both High Yield Bonds funds. Over the past 5 years, FTHY returned 2.72%/yr vs 1.57%/yr for HYI. At a 0.36 correlation, their price movements are largely independent. FTHY charges 0.02%/yr vs 0.01%/yr for HYI.

Performance

FTHY vs. HYI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust High Yield Opportunities 2027 Term Fund (FTHY) and Western Asset High Yield Opportunity Fund Inc (HYI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FTHY achieves a 1.53% return, which is significantly higher than HYI's -0.93% return.

FTHY

• 1D: 0.00%
• 1M: 0.39%
• YTD: 1.53%
• 6M: 1.96%
• 1Y: 3.84%
• 3Y*: 11.21%
• 5Y*: 2.72%
• 10Y*: —

HYI

• 1D: 0.24%
• 1M: 0.43%
• YTD: -0.93%
• 6M: 0.33%
• 1Y: -1.80%
• 3Y*: 6.21%
• 5Y*: 1.57%
• 10Y*: 5.17%

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

FTHY vs. HYI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
FTHY First Trust High Yield Opportunities 2027 Term Fund	1.53%	7.80%	15.71%	14.65%	-26.09%	7.63%	4.66%
HYI Western Asset High Yield Opportunity Fund Inc	-0.93%	4.09%	7.58%	6.72%	-13.48%	10.04%	14.58%

Correlation

The correlation between FTHY and HYI is 0.55, 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	0.55
Correlation (3Y) Calculated over the trailing 3-year period	0.46
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (All Time) Calculated using the full available price history since Jun 26, 2020	0.36

The correlation between FTHY and HYI shifts across timeframes, from 0.36 (all time) to 0.55 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

FTHY vs. HYI — Risk / Return Rank

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

FTHY

FTHY Risk / Return Rank: 7
FTHY Sharpe Ratio Rank: 7
FTHY Sortino Ratio Rank: 7
FTHY Omega Ratio Rank: 7
FTHY Calmar Ratio Rank: 8
FTHY Martin Ratio Rank: 7

HYI

HYI Risk / Return Rank: 2
HYI Sharpe Ratio Rank: 2
HYI Sortino Ratio Rank: 2
HYI Omega Ratio Rank: 2
HYI Calmar Ratio Rank: 2
HYI Martin Ratio Rank: 2

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.

FTHY vs. HYI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust High Yield Opportunities 2027 Term Fund (FTHY) and Western Asset High Yield Opportunity Fund Inc (HYI). 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.

	FTHY	HYI	Difference
Sharpe ratio: Return per unit of total volatility	0.52	-0.26	+0.78
Sortino ratio: Return per unit of downside risk	0.77	-0.31	+1.08
Omega ratio: Gain probability vs. loss probability	1.10	0.96	+0.14
Calmar ratio: Return relative to maximum drawdown	0.71	-0.22	+0.93
Martin ratio: Return relative to average drawdown	1.89	-0.42	+2.31

FTHY vs. HYI - Sharpe Ratio Comparison

The current FTHY Sharpe Ratio is 0.52, which is higher than the HYI Sharpe Ratio of -0.26. The chart below compares the historical Sharpe Ratios of FTHY and HYI, 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

FTHY vs. HYI - Drawdown Comparison

The maximum FTHY drawdown since its inception was -31.17%, smaller than the maximum HYI drawdown of -36.06%. Use the drawdown chart below to compare losses from any high point for FTHY and HYI.

Drawdown Indicators

	FTHY	HYI	Difference
Max Drawdown Largest peak-to-trough decline	-31.17%	-36.06%	+4.89%
Max Drawdown (1Y) Largest decline over 1 year	-5.44%	-8.19%	+2.75%
Max Drawdown (3Y) Largest decline over 3 years	-8.70%	-8.19%	-0.51%
Max Drawdown (5Y) Largest decline over 5 years	-31.17%	-26.35%	-4.82%
Max Drawdown (10Y) Largest decline over 10 years	—	-36.06%	—
Current Drawdown Current decline from peak	-1.28%	-5.43%	+4.15%
Average Drawdown Average peak-to-trough decline	-10.12%	-5.80%	-4.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.04%	4.26%	-2.22%

Volatility

FTHY vs. HYI - Volatility Comparison

First Trust High Yield Opportunities 2027 Term Fund (FTHY) has a higher volatility of 2.77% compared to Western Asset High Yield Opportunity Fund Inc (HYI) at 1.15%. This indicates that FTHY's price experiences larger fluctuations and is considered to be riskier than HYI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FTHY	HYI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.77%	1.15%	+1.62%
Volatility (6M) Calculated over the trailing 6-month period	5.68%	5.33%	+0.35%
Volatility (1Y) Calculated over the trailing 1-year period	7.43%	6.92%	+0.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.85%	11.27%	+1.58%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.23%	12.94%	+0.29%

FTHY vs. HYI - Expense Ratio Comparison

FTHY has a 0.02% expense ratio, which is higher than HYI's 0.02% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

FTHY vs. HYI - Dividend Comparison

FTHY's dividend yield for the trailing twelve months is around 11.09%, more than HYI's 10.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FTHY First Trust High Yield Opportunities 2027 Term Fund	11.09%	10.66%	10.70%	10.22%	11.85%	7.83%	2.94%	0.00%	0.00%	0.00%	0.00%	0.00%
HYI Western Asset High Yield Opportunity Fund Inc	10.87%	10.22%	9.64%	9.40%	9.09%	7.19%	7.35%	6.87%	8.10%	7.81%	8.73%	9.36%

Frequently Asked Questions

Can I hold both FTHY and HYI in my portfolio?

FTHY and HYI have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FTHY or HYI?

FTHY has higher volatility (2.77%) compared to HYI (1.15%). In terms of maximum drawdown, FTHY dropped -31.17% vs HYI's -36.06%.

Which has better risk-adjusted returns?

FTHY currently has the higher Sharpe Ratio (0.52 vs -0.26), 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.