HYD vs. HYG
Compare and contrast key facts about VanEck Vectors High-Yield Municipal Index ETF (HYD) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG).
HYD and HYG are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. HYD is a passively managed fund by VanEck that tracks the performance of the Bloomberg Barclays Municipal Custom High Yield Composite Index. It was launched on Feb 4, 2009. 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. Both HYD and HYG are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: HYD or HYG.
Key characteristics
| HYD | HYG | |
|---|---|---|
| YTD Return | 4.80% | 8.49% |
| 1Y Return | 10.20% | 13.41% |
| 3Y Return (Ann) | -1.90% | 2.81% |
| 5Y Return (Ann) | -0.13% | 3.55% |
| 10Y Return (Ann) | 3.65% | 3.97% |
| Sharpe Ratio | 2.11 | 3.06 |
| Sortino Ratio | 3.10 | 4.84 |
| Omega Ratio | 1.42 | 1.60 |
| Calmar Ratio | 0.72 | 2.61 |
| Martin Ratio | 13.70 | 23.68 |
| Ulcer Index | 0.83% | 0.61% |
| Daily Std Dev | 5.41% | 4.76% |
| Max Drawdown | -35.60% | -34.24% |
| Current Drawdown | -6.84% | -0.49% |
Correlation
The correlation between HYD and HYG is 0.17, 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
HYD vs. HYG - Performance Comparison
In the year-to-date period, HYD achieves a 4.80% return, which is significantly lower than HYG's 8.49% return. Over the past 10 years, HYD has underperformed HYG with an annualized return of 3.65%, while HYG has yielded a comparatively higher 3.97% 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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HYD vs. HYG - Expense Ratio Comparison
HYD has a 0.35% expense ratio, which is lower than HYG's 0.49% expense ratio.
Risk-Adjusted Performance
HYD vs. HYG - Risk-Adjusted Performance 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.
Dividends
HYD vs. HYG - Dividend Comparison
HYD's dividend yield for the trailing twelve months is around 4.24%, less than HYG's 5.89% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYD VanEck Vectors High-Yield Municipal Index ETF | 4.24% | 4.13% | 3.96% | 3.50% | 4.01% | 4.08% | 14.47% | 4.29% | 4.58% | 4.83% | 4.98% | 6.34% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.89% | 5.75% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% | 5.69% | 6.10% |
Drawdowns
HYD vs. HYG - Drawdown Comparison
The maximum HYD drawdown since its inception was -35.60%, roughly equal to the maximum HYG drawdown of -34.24%. Use the drawdown chart below to compare losses from any high point for HYD and HYG. For additional features, visit the drawdowns tool.
Volatility
HYD vs. HYG - Volatility Comparison
VanEck Vectors High-Yield Municipal Index ETF (HYD) has a higher volatility of 2.14% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.13%. This indicates that HYD'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.