FXI vs. HYG

Last updated Jun 9, 2026

FXI (iShares China Large-Cap ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - FXI is a China Equities fund tracking the FTSE China 50 Index, while HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 10 years, FXI returned 2.76%/yr vs 4.88%/yr for HYG. At a 0.46 correlation, their price movements are largely independent. FXI charges 0.74%/yr vs 0.49%/yr for HYG.

Performance

FXI vs. HYG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares China Large-Cap ETF (FXI) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXI achieves a -9.43% return, which is significantly lower than HYG's 1.14% return. Over the past 10 years, FXI has underperformed HYG with an annualized return of 2.76%, while HYG has yielded a comparatively higher 4.88% annualized return.

FXI

• 1D: -0.20%
• 1M: -6.87%
• YTD: -9.43%
• 6M: -11.18%
• 1Y: -2.84%
• 3Y*: 10.10%
• 5Y*: -3.36%
• 10Y*: 2.76%

HYG

• 1D: 0.14%
• 1M: -0.24%
• YTD: 1.14%
• 6M: 1.72%
• 1Y: 6.36%
• 3Y*: 8.34%
• 5Y*: 3.69%
• 10Y*: 4.88%

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

FXI vs. HYG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXI iShares China Large-Cap ETF	-9.43%	28.95%	28.98%	-12.42%	-20.66%	-20.06%	8.92%	14.90%	-13.28%	36.26%
HYG iShares iBoxx $ High Yield Corporate Bond ETF	1.14%	8.59%	7.97%	11.54%	-10.98%	3.76%	4.47%	14.09%	-2.02%	6.07%

Correlation

The correlation between FXI and HYG is 0.40, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.40
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (10Y) Calculated over the trailing 10-year period	0.44
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007	0.46

The correlation between FXI and HYG shifts across timeframes, from 0.34 (3 years) to 0.46 (all time), reflecting how their relationship changes across market environments.

FXI vs. HYG - Sectors Allocation Comparison

Sectors	FXI	HYG
Financial Services	34.6%	-
Consumer Cyclical	25.3%	-
Communication Services	12.2%	-
Technology	9.3%	-
Energy	5.3%	-
Industrials	4.1%	-
Basic Materials	3.9%	-
Healthcare	2.2%	-
Real Estate	1.1%	0.4%
Consumer Defensive	0.9%	-
Utilities	0.4%	99.6%

Return for Risk

FXI vs. HYG — Risk / Return Rank

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

FXI

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

HYG

HYG Risk / Return Rank: 60
HYG Sharpe Ratio Rank: 54
HYG Sortino Ratio Rank: 58
HYG Omega Ratio Rank: 56
HYG Calmar Ratio Rank: 60
HYG Martin Ratio Rank: 71

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.

FXI vs. HYG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares China Large-Cap ETF (FXI) 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.

	FXI	HYG	Difference
Sharpe ratio: Return per unit of total volatility	-0.14	1.67	-1.81
Sortino ratio: Return per unit of downside risk	-0.06	2.49	-2.56
Omega ratio: Gain probability vs. loss probability	0.99	1.32	-0.32
Calmar ratio: Return relative to maximum drawdown	-0.18	2.73	-2.91
Martin ratio: Return relative to average drawdown	-0.38	12.02	-12.40
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FXI vs. HYG - Sharpe Ratio Comparison

The current FXI Sharpe Ratio is -0.14, which is lower than the HYG Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of FXI and HYG, 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

	FXI	HYG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.14	1.67	-1.81
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.11	0.49	-0.60
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.10	0.59	-0.49
Sharpe Ratio (All Time) Calculated using the full available price history	0.16	0.46	-0.29

Drawdowns

FXI vs. HYG - Drawdown Comparison

The maximum FXI drawdown since its inception was -72.68%, which is greater than HYG's maximum drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for FXI and HYG.

Drawdown Indicators

	FXI	HYG	Difference
Max Drawdown Largest peak-to-trough decline	-72.68%	-34.25%	-38.43%
Max Drawdown (1Y) Largest decline over 1 year	-16.03%	-2.34%	-13.69%
Max Drawdown (3Y) Largest decline over 3 years	-28.72%	-4.56%	-24.16%
Max Drawdown (5Y) Largest decline over 5 years	-54.94%	-15.79%	-39.15%
Max Drawdown (10Y) Largest decline over 10 years	-60.81%	-22.03%	-38.78%
Current Drawdown Current decline from peak	-28.68%	-0.45%	-28.23%
Average Drawdown Average peak-to-trough decline	-31.22%	-3.24%	-27.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.41%	0.53%	+6.88%

Volatility

FXI vs. HYG - Volatility Comparison

iShares China Large-Cap ETF (FXI) has a higher volatility of 6.70% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.23%. This indicates that FXI'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.

Volatility by Period

	FXI	HYG	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.70%	1.23%	+5.47%
Volatility (6M) Calculated over the trailing 6-month period	14.46%	3.05%	+11.41%
Volatility (1Y) Calculated over the trailing 1-year period	19.95%	3.84%	+16.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.68%	7.53%	+24.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.67%	8.29%	+19.38%

FXI vs. HYG - Expense Ratio Comparison

FXI has a 0.74% expense ratio, which is higher than HYG's 0.49% expense ratio.

Dividends

FXI vs. HYG - Dividend Comparison

FXI's dividend yield for the trailing twelve months is around 2.67%, less than HYG's 5.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FXI iShares China Large-Cap ETF	2.67%	2.42%	1.76%	3.17%	2.61%	1.60%	2.19%	2.74%	2.69%	2.31%	2.69%	2.90%
HYG iShares iBoxx $ High Yield Corporate Bond ETF	5.93%	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

Can I hold both FXI and HYG in my portfolio?

FXI and HYG have a correlation of 0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXI or HYG?

FXI has higher volatility (6.70%) compared to HYG (1.23%). In terms of maximum drawdown, FXI dropped -72.68% vs HYG's -34.25%.

Which ETF is better, FXI or HYG?

On 10-year performance, HYG leads with 4.88% vs 2.76% for FXI. On fees, HYG is cheaper at 0.49% per year. On volatility, HYG has been the lower-risk option at 1.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXI or HYG?

Over the 10-year period, HYG has performed better with a 4.88% return vs 2.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXI or HYG?

HYG is cheaper with a 0.49% expense ratio, compared with 0.74% for FXI.

Which ETF pays a higher dividend yield, FXI or HYG?

HYG has the higher dividend yield at 5.93%, compared with 2.67% for FXI.

What is the main difference between FXI and HYG?

FXI is categorized as China Equities, while HYG is High Yield Bonds. FXI tracks FTSE China 50 Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. Their fees differ too: 0.74% for FXI and 0.49% for HYG.

Which has better risk-adjusted returns?

HYG currently has the higher Sharpe Ratio (1.67 vs -0.14), 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.