FXED vs. HYG
FXED (Sound Enhanced Fixed Income ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - FXED is a Diversified Portfolio fund actively managed by Sound Income Strategies, while HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. FXED is actively managed, while HYG is passively managed. Over the past 5 years, FXED returned 2.32%/yr vs 3.68%/yr for HYG. A 0.53 correlation means they provide meaningful diversification when combined. FXED charges 2.33%/yr vs 0.49%/yr for HYG.
Performance
FXED vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, FXED achieves a -0.29% return, which is significantly lower than HYG's 1.56% return.
FXED
- 1D
- -0.14%
- 1M
- 0.11%
- YTD
- -0.29%
- 6M
- 0.53%
- 1Y
- 3.74%
- 3Y*
- 6.90%
- 5Y*
- 2.32%
- 10Y*
- —
HYG
- 1D
- -0.09%
- 1M
- 0.46%
- YTD
- 1.56%
- 6M
- 1.74%
- 1Y
- 5.93%
- 3Y*
- 8.75%
- 5Y*
- 3.68%
- 10Y*
- 5.00%
FXED vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
FXED Sound Enhanced Fixed Income ETF | -0.29% | 5.77% | 5.18% | 15.09% | -14.68% | 9.75% | -0.17% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.56% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 0.08% |
Correlation
The correlation between FXED and HYG is 0.50, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.53 |
Correlation (All Time) Calculated using the full available price history since Dec 31, 2020 | 0.53 |
The correlation between FXED and HYG has been stable across timeframes, ranging from 0.49 to 0.53 - a consistent structural relationship.
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Return for Risk
FXED vs. HYG — Risk / Return Rank
FXED
HYG
FXED vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Sound Enhanced Fixed Income ETF (FXED) 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.
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.
| FXED | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.99 | ||
| Sortino ratioReturn per unit of downside risk | -1.49 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 1.29 | -0.19 |
| Calmar ratioReturn relative to maximum drawdown | 0.70 | 2.55 | -1.85 |
| Martin ratioReturn relative to average drawdown | 1.86 | 11.18 | -9.32 |
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Drawdowns
FXED vs. HYG - Drawdown Comparison
The maximum FXED drawdown since its inception was -19.70%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for FXED and HYG.
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Drawdown Indicators
| FXED | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.70% | -34.25% | +14.55% |
Max Drawdown (1Y)Largest decline over 1 year | -5.36% | -2.34% | -3.02% |
Max Drawdown (3Y)Largest decline over 3 years | -8.96% | -4.56% | -4.40% |
Max Drawdown (5Y)Largest decline over 5 years | -19.70% | -15.79% | -3.91% |
Max Drawdown (10Y)Largest decline over 10 years | — | -22.03% | — |
Current DrawdownCurrent decline from peak | -2.14% | -0.21% | -1.93% |
Average DrawdownAverage peak-to-trough decline | -4.75% | -3.23% | -1.52% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.02% | 0.53% | +1.49% |
Volatility
FXED vs. HYG - Volatility Comparison
Sound Enhanced Fixed Income ETF (FXED) has a higher volatility of 1.82% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.13%. This indicates that FXED'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.
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Volatility by Period
| FXED | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.82% | 1.13% | +0.69% |
Volatility (6M)Calculated over the trailing 6-month period | 5.30% | 3.11% | +2.19% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.83% | 3.88% | +2.95% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.76% | 7.54% | +1.22% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.56% | 8.27% | +0.29% |
FXED vs. HYG - Expense Ratio Comparison
FXED has a 2.33% expense ratio, which is higher than HYG's 0.49% expense ratio.
Dividends
FXED vs. HYG - Dividend Comparison
FXED's dividend yield for the trailing twelve months is around 7.15%, more than HYG's 5.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXED Sound Enhanced Fixed Income ETF | 7.15% | 6.96% | 6.70% | 5.65% | 5.94% | 4.59% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.91% | 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
FXED and HYG have a correlation of 0.50, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
FXED has higher volatility (1.82%) compared to HYG (1.13%). In terms of maximum drawdown, FXED dropped -19.70% vs HYG's -34.25%.
On 5-year performance, HYG leads with 3.68% vs 2.32% for FXED. On fees, HYG is cheaper at 0.49% per year. On volatility, HYG has been the lower-risk option at 1.13%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, HYG has performed better with a 3.68% return vs 2.32%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HYG is cheaper with a 0.49% expense ratio, compared with 2.33% for FXED.
FXED has the higher dividend yield at 7.15%, compared with 5.91% for HYG.
FXED is categorized as Diversified Portfolio, while HYG is High Yield Bonds. They also come from different issuers: Sound Income Strategies and iShares. Their fees differ too: 2.33% for FXED and 0.49% for HYG.
HYG currently has the higher Sharpe Ratio (1.54 vs 0.55), 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.
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