HYD vs. HYG
HYD (VanEck Vectors High-Yield Municipal Index ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - HYD is a Municipal Bonds fund tracking the Bloomberg Barclays Municipal Custom High Yield Composite 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, HYD returned 1.99%/yr vs 4.97%/yr for HYG. At a 0.19 correlation, their price movements are largely independent. HYD charges 0.35%/yr vs 0.49%/yr for HYG.
Performance
HYD vs. HYG - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, HYD achieves a 2.52% return, which is significantly higher than HYG's 1.74% return. Over the past 10 years, HYD has underperformed HYG with an annualized return of 1.99%, while HYG has yielded a comparatively higher 4.97% annualized return.
HYD
- 1D
- 0.45%
- 1M
- 1.90%
- YTD
- 2.52%
- 6M
- 2.85%
- 1Y
- 7.63%
- 3Y*
- 4.40%
- 5Y*
- -0.14%
- 10Y*
- 1.99%
HYG
- 1D
- 0.35%
- 1M
- 0.65%
- YTD
- 1.74%
- 6M
- 2.08%
- 1Y
- 6.32%
- 3Y*
- 8.46%
- 5Y*
- 3.82%
- 10Y*
- 4.97%
HYD vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HYD VanEck Vectors High-Yield Municipal Index ETF | 2.52% | 2.83% | 4.94% | 6.52% | -15.97% | 5.05% | 0.17% | 9.34% | 2.19% | 9.78% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.74% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
Correlation
The correlation between HYD and HYG is 0.50, 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 | 0.50 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.52 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.52 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.32 |
Correlation (All Time) Calculated using the full available price history since Feb 5, 2009 | 0.19 |
Over the past year, HYD and HYG have become more correlated (0.50) than their long-term average of 0.19, meaning their price movements have been converging.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
HYD vs. HYG — Risk / Return Rank
HYD
HYG
HYD vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for VanEck Vectors High-Yield Municipal Index ETF (HYD) 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.
| HYD | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.27 | ||
| Sortino ratioReturn per unit of downside risk | +0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.42 | 1.33 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.46 | 2.86 | -0.39 |
| Martin ratioReturn relative to average drawdown | 8.47 | 12.54 | -4.07 |
Loading charts...
Drawdowns
HYD vs. HYG - Drawdown Comparison
The maximum HYD drawdown since its inception was -35.61%, roughly equal to the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for HYD and HYG.
Loading charts...
Drawdown Indicators
| HYD | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -35.61% | -34.25% | -1.36% |
Max Drawdown (1Y)Largest decline over 1 year | -3.21% | -2.34% | -0.87% |
Max Drawdown (3Y)Largest decline over 3 years | -7.23% | -4.56% | -2.67% |
Max Drawdown (5Y)Largest decline over 5 years | -20.72% | -15.79% | -4.93% |
Max Drawdown (10Y)Largest decline over 10 years | -35.61% | -22.03% | -13.58% |
Current DrawdownCurrent decline from peak | -1.65% | -0.04% | -1.61% |
Average DrawdownAverage peak-to-trough decline | -4.32% | -3.23% | -1.09% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.93% | 0.53% | +0.40% |
Volatility
HYD vs. HYG - Volatility Comparison
The current volatility for VanEck Vectors High-Yield Municipal Index ETF (HYD) is 0.90%, while iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a volatility of 1.27%. This indicates that HYD 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.
Loading charts...
Volatility by Period
| HYD | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.90% | 1.27% | -0.37% |
Volatility (6M)Calculated over the trailing 6-month period | 3.03% | 3.12% | -0.09% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.97% | 3.89% | +0.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.46% | 7.54% | -1.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.60% | 8.29% | +4.31% |
HYD vs. HYG - Expense Ratio Comparison
HYD has a 0.35% expense ratio, which is lower than HYG's 0.49% expense ratio.
Dividends
HYD vs. HYG - Dividend Comparison
HYD's dividend yield for the trailing twelve months is around 4.24%, less than HYG's 5.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYD VanEck Vectors High-Yield Municipal Index ETF | 4.24% | 4.29% | 4.29% | 4.13% | 3.96% | 3.50% | 4.01% | 4.08% | 4.43% | 4.29% | 4.58% | 4.82% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.90% | 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
HYD 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.
HYG has higher volatility (1.27%) compared to HYD (0.90%). In terms of maximum drawdown, HYD dropped -35.61% vs HYG's -34.25%.
On 10-year performance, HYG leads with 4.97% vs 1.99% for HYD. On fees, HYD is cheaper at 0.35% per year. On volatility, HYD has been the lower-risk option at 0.90%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HYG has performed better with a 4.97% return vs 1.99%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HYD is cheaper with a 0.35% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.90%, compared with 4.24% for HYD.
HYD is categorized as Municipal Bonds, while HYG is High Yield Bonds. HYD tracks Bloomberg Barclays Municipal Custom High Yield Composite Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. They also come from different issuers: VanEck and iShares. Their fees differ too: 0.35% for HYD and 0.49% for HYG.
HYD currently has the higher Sharpe Ratio (1.99 vs 1.72), 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.
Find the right allocation for HYD and HYG
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer