HEZU vs. HYG
HEZU (iShares Currency Hedged MSCI Eurozone ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - HEZU is a Europe Equities fund tracking the MSCI EMU 100% USD Hedged 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, HEZU returned 12.74%/yr vs 5.03%/yr for HYG. A 0.61 correlation means they provide meaningful diversification when combined. HEZU charges 0.52%/yr vs 0.49%/yr for HYG.
Performance
HEZU vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, HEZU achieves a 12.90% return, which is significantly higher than HYG's 1.78% return. Over the past 10 years, HEZU has outperformed HYG with an annualized return of 12.74%, while HYG has yielded a comparatively lower 5.03% annualized return.
HEZU
- 1D
- 0.71%
- 1M
- 7.52%
- YTD
- 12.90%
- 6M
- 13.50%
- 1Y
- 25.79%
- 3Y*
- 18.13%
- 5Y*
- 12.82%
- 10Y*
- 12.74%
HYG
- 1D
- 0.13%
- 1M
- 1.25%
- YTD
- 1.78%
- 6M
- 2.29%
- 1Y
- 6.95%
- 3Y*
- 8.47%
- 5Y*
- 3.83%
- 10Y*
- 5.03%
HEZU vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HEZU iShares Currency Hedged MSCI Eurozone ETF | 12.90% | 25.93% | 10.63% | 22.98% | -9.54% | 23.51% | 0.52% | 29.48% | -10.23% | 14.26% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.78% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
Correlation
The correlation between HEZU and HYG is 0.63, 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 | 0.63 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.56 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Aug 7, 2014 | 0.61 |
The correlation between HEZU and HYG has been stable across timeframes, ranging from 0.56 to 0.63 - a consistent structural relationship.
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Return for Risk
HEZU vs. HYG — Risk / Return Rank
HEZU
HYG
HEZU vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Eurozone ETF (HEZU) 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.
| HEZU | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.13 | ||
| Sortino ratioReturn per unit of downside risk | -0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.31 | 1.35 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.36 | 2.98 | -0.62 |
| Martin ratioReturn relative to average drawdown | 9.29 | 13.11 | -3.82 |
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Drawdowns
HEZU vs. HYG - Drawdown Comparison
The maximum HEZU drawdown since its inception was -38.80%, which is greater than HYG's maximum drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for HEZU and HYG.
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Drawdown Indicators
| HEZU | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.80% | -34.25% | -4.55% |
Max Drawdown (1Y)Largest decline over 1 year | -10.95% | -2.34% | -8.61% |
Max Drawdown (3Y)Largest decline over 3 years | -14.83% | -4.56% | -10.27% |
Max Drawdown (5Y)Largest decline over 5 years | -22.79% | -15.79% | -7.00% |
Max Drawdown (10Y)Largest decline over 10 years | -38.80% | -22.03% | -16.77% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -5.82% | -3.24% | -2.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.78% | 0.53% | +2.25% |
Volatility
HEZU vs. HYG - Volatility Comparison
iShares Currency Hedged MSCI Eurozone ETF (HEZU) has a higher volatility of 5.72% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.31%. This indicates that HEZU'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
| HEZU | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.72% | 1.31% | +4.41% |
Volatility (6M)Calculated over the trailing 6-month period | 13.13% | 3.08% | +10.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.51% | 3.87% | +11.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.59% | 7.53% | +9.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.43% | 8.29% | +10.14% |
HEZU vs. HYG - Expense Ratio Comparison
HEZU has a 0.52% expense ratio, which is higher than HYG's 0.49% expense ratio.
Dividends
HEZU vs. HYG - Dividend Comparison
HEZU's dividend yield for the trailing twelve months is around 2.59%, less than HYG's 5.89% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HEZU iShares Currency Hedged MSCI Eurozone ETF | 2.59% | 2.92% | 2.77% | 2.52% | 23.26% | 2.25% | 2.32% | 5.40% | 3.48% | 1.92% | 3.11% | 2.68% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.89% | 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
HEZU and HYG have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HEZU has higher volatility (5.72%) compared to HYG (1.31%). In terms of maximum drawdown, HEZU dropped -38.80% vs HYG's -34.25%.
On 10-year performance, HEZU leads with 12.74% vs 5.03% for HYG. On fees, HYG is cheaper at 0.49% per year. On volatility, HYG has been the lower-risk option at 1.31%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HEZU has performed better with a 12.74% return vs 5.03%. 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 0.52% for HEZU.
HYG has the higher dividend yield at 5.89%, compared with 2.59% for HEZU.
HEZU is categorized as Europe Equities, while HYG is High Yield Bonds. HEZU tracks MSCI EMU 100% USD Hedged Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. Their fees differ too: 0.52% for HEZU and 0.49% for HYG.
HYG currently has the higher Sharpe Ratio (1.81 vs 1.67), 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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