HYDB vs. FLHY

Last updated Jun 3, 2026

HYDB (iShares High Yield Bond Factor ETF) and FLHY (Franklin Liberty High Yield Corporate ETF) are both High Yield Bonds funds. HYDB is passively managed, while FLHY is actively managed. Over the past 5 years, HYDB returned 4.76%/yr vs 4.80%/yr for FLHY. Their correlation of 0.86 suggests significant overlap in exposure. HYDB charges 0.35%/yr vs 0.40%/yr for FLHY.

Performance

HYDB vs. FLHY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares High Yield Bond Factor ETF (HYDB) and Franklin Liberty High Yield Corporate ETF (FLHY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HYDB achieves a 1.54% return, which is significantly lower than FLHY's 1.94% return.

HYDB

• 1D: 0.17%
• 1M: 0.26%
• YTD: 1.54%
• 6M: 2.24%
• 1Y: 7.59%
• 3Y*: 9.19%
• 5Y*: 4.76%
• 10Y*: —

FLHY

• 1D: 0.04%
• 1M: 0.34%
• YTD: 1.94%
• 6M: 2.66%
• 1Y: 8.18%
• 3Y*: 9.33%
• 5Y*: 4.80%
• 10Y*: —

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

HYDB vs. FLHY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
HYDB iShares High Yield Bond Factor ETF	1.54%	8.10%	9.11%	14.02%	-9.99%	5.14%	7.39%	16.13%	-2.66%
FLHY Franklin Liberty High Yield Corporate ETF	1.94%	9.26%	8.70%	13.40%	-10.45%	4.27%	7.77%	16.39%	-1.31%

Correlation

The correlation between HYDB and FLHY is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (All Time) Calculated using the full available price history since Jun 4, 2018	0.86

The correlation between HYDB and FLHY has been stable across timeframes, ranging from 0.86 to 0.93 - a consistent structural relationship.

Return for Risk

HYDB vs. FLHY — Risk / Return Rank

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

HYDB

HYDB Risk / Return Rank: 61
HYDB Sharpe Ratio Rank: 59
HYDB Sortino Ratio Rank: 65
HYDB Omega Ratio Rank: 64
HYDB Calmar Ratio Rank: 53
HYDB Martin Ratio Rank: 64

FLHY

FLHY Risk / Return Rank: 70
FLHY Sharpe Ratio Rank: 64
FLHY Sortino Ratio Rank: 71
FLHY Omega Ratio Rank: 70
FLHY Calmar Ratio Rank: 67
FLHY Martin Ratio Rank: 80

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.

HYDB vs. FLHY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares High Yield Bond Factor ETF (HYDB) and Franklin Liberty High Yield Corporate ETF (FLHY). 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.

	HYDB	FLHY	Difference
Sharpe ratio Return per unit of total volatility	2.02	2.15	-0.13
Sortino ratio Return per unit of downside risk	3.04	3.28	-0.24
Omega ratio Gain probability vs. loss probability	1.39	1.42	-0.03
Calmar ratio Return relative to maximum drawdown	2.65	3.38	-0.73
Martin ratio Return relative to average drawdown	11.77	15.92	-4.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HYDB vs. FLHY - Sharpe Ratio Comparison

The current HYDB Sharpe Ratio is 2.02, which is comparable to the FLHY Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of HYDB and FLHY, 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

	HYDB	FLHY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.02	2.15	-0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.70	-0.02
Sharpe Ratio (All Time) Calculated using the full available price history	0.71	0.73	-0.02

Drawdowns

HYDB vs. FLHY - Drawdown Comparison

The maximum HYDB drawdown since its inception was -21.58%, roughly equal to the maximum FLHY drawdown of -22.58%. Use the drawdown chart below to compare losses from any high point for HYDB and FLHY.

Drawdown Indicators

	HYDB	FLHY	Difference
Max Drawdown Largest peak-to-trough decline	-21.58%	-22.58%	+1.00%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-2.43%	-0.40%
Max Drawdown (3Y) Largest decline over 3 years	-5.58%	-4.49%	-1.09%
Max Drawdown (5Y) Largest decline over 5 years	-14.28%	-15.19%	+0.91%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-2.39%	-2.54%	+0.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.64%	0.52%	+0.12%

Volatility

HYDB vs. FLHY - Volatility Comparison

The current volatility for iShares High Yield Bond Factor ETF (HYDB) is 1.17%, while Franklin Liberty High Yield Corporate ETF (FLHY) has a volatility of 1.25%. This indicates that HYDB experiences smaller price fluctuations and is considered to be less risky than FLHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HYDB	FLHY	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.17%	1.25%	-0.08%
Volatility (6M) Calculated over the trailing 6-month period	2.93%	2.97%	-0.04%
Volatility (1Y) Calculated over the trailing 1-year period	3.78%	3.83%	-0.05%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.04%	6.94%	+0.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.76%	8.12%	-0.36%

HYDB vs. FLHY - Expense Ratio Comparison

HYDB has a 0.35% expense ratio, which is lower than FLHY's 0.40% expense ratio.

Dividends

HYDB vs. FLHY - Dividend Comparison

HYDB's dividend yield for the trailing twelve months is around 6.99%, more than FLHY's 6.46% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
FLHY Franklin Liberty High Yield Corporate ETF	6.46%	6.53%	6.51%	6.26%	6.54%	5.76%	5.47%	5.61%	4.27%	0.00%
HYDB iShares High Yield Bond Factor ETF	6.99%	7.04%	6.95%	7.00%	6.30%	4.70%	5.81%	5.68%	6.16%	2.70%

Frequently Asked Questions

Can I hold both HYDB and FLHY in my portfolio?

With a correlation of 0.93, HYDB and FLHY move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, HYDB or FLHY?

FLHY has higher volatility (1.25%) compared to HYDB (1.17%). In terms of maximum drawdown, HYDB dropped -21.58% vs FLHY's -22.58%.

Which ETF is better, HYDB or FLHY?

On 5-year performance, FLHY leads with 4.80% vs 4.76% for HYDB. On fees, HYDB is cheaper at 0.35% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HYDB or FLHY?

Over the 5-year period, FLHY has performed better with a 4.80% return vs 4.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HYDB or FLHY?

HYDB is cheaper with a 0.35% expense ratio, compared with 0.40% for FLHY.

Which ETF pays a higher dividend yield, HYDB or FLHY?

HYDB has the higher dividend yield at 6.99%, compared with 6.46% for FLHY.

What is the main difference between HYDB and FLHY?

They also come from different issuers: iShares and Franklin Templeton. Their fees differ too: 0.35% for HYDB and 0.40% for FLHY.

Which has better risk-adjusted returns?

FLHY currently has the higher Sharpe Ratio (2.15 vs 2.02), 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.