FTSL vs. HYG
Compare and contrast key facts about First Trust Senior Loan Fund (FTSL) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG).
FTSL and HYG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FTSL is an actively managed fund by First Trust. It was launched on May 1, 2013. HYG is a passively managed fund by iShares that tracks the performance of the iBoxx $ Liquid High Yield Index. It was launched on Apr 11, 2007.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FTSL or HYG.
Key characteristics
| FTSL | HYG | |
|---|---|---|
| YTD Return | 2.38% | 0.15% |
| 1Y Return | 9.96% | 7.96% |
| 3Y Return (Ann) | 4.45% | 0.64% |
| 5Y Return (Ann) | 4.25% | 2.57% |
| 10Y Return (Ann) | 3.73% | 3.12% |
| Sharpe Ratio | 4.41 | 1.21 |
| Daily Std Dev | 2.31% | 6.18% |
| Max Drawdown | -22.67% | -34.24% |
| Current Drawdown | -0.26% | -1.56% |
Correlation
The correlation between FTSL and HYG is 0.38, which is considered to be low. This implies their price changes are not closely related. A low correlation is generally favorable for portfolio diversification, as it helps to reduce overall risk by spreading it across multiple assets with different performance patterns.
Performance
FTSL vs. HYG - Performance Comparison
In the year-to-date period, FTSL achieves a 2.38% return, which is significantly higher than HYG's 0.15% return. Over the past 10 years, FTSL has outperformed HYG with an annualized return of 3.73%, while HYG has yielded a comparatively lower 3.12% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FTSL vs. HYG - Expense Ratio Comparison
FTSL has a 0.86% expense ratio, which is higher than HYG's 0.49% expense ratio.
Risk-Adjusted Performance
FTSL vs. HYG - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for First Trust Senior Loan Fund (FTSL) 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.
Dividends
FTSL vs. HYG - Dividend Comparison
FTSL's dividend yield for the trailing twelve months is around 7.75%, more than HYG's 5.47% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FTSL First Trust Senior Loan Fund | 7.75% | 7.59% | 4.77% | 3.17% | 3.48% | 4.43% | 4.29% | 3.64% | 3.70% | 3.95% | 3.74% | 2.64% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.47% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% | 5.69% | 6.10% |
Drawdowns
FTSL vs. HYG - Drawdown Comparison
The maximum FTSL drawdown since its inception was -22.67%, smaller than the maximum HYG drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for FTSL and HYG. For additional features, visit the drawdowns tool.
Volatility
FTSL vs. HYG - Volatility Comparison
The current volatility for First Trust Senior Loan Fund (FTSL) is 0.60%, while iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a volatility of 1.68%. This indicates that FTSL experiences smaller price fluctuations and is considered to be less risky than HYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.