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HYDB vs. HYG
Performance
Return for Risk
Drawdowns
Volatility
Dividends

Performance

HYDB vs. HYG - Performance Comparison

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

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Returns By Period

The year-to-date returns for both investments are quite close, with HYDB having a 1.54% return and HYG slightly higher at 1.60%.


HYDB

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

HYG

1D
0.08%
1M
0.31%
YTD
1.60%
6M
2.09%
1Y
7.00%
3Y*
8.58%
5Y*
3.87%
10Y*
4.97%
*Multi-year figures are annualized to reflect compound growth (CAGR)

HYDB vs. HYG - Yearly Performance Comparison


2026 (YTD)202520242023202220212020201920182017
HYDB
iShares High Yield Bond Factor ETF
1.54%8.10%9.11%14.02%-9.99%5.14%7.39%16.13%-3.18%3.38%
HYG
iShares iBoxx $ High Yield Corporate Bond ETF
1.60%8.59%7.97%11.54%-10.98%3.76%4.47%14.09%-2.02%1.35%

Correlation

The correlation between HYDB and HYG is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.


Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.96

Correlation (3Y)
Calculated over the trailing 3-year period

0.96

Correlation (5Y)
Calculated over the trailing 5-year period

0.96

Correlation (All Time)
Calculated using the full available price history since Jul 14, 2017

0.87

The correlation between HYDB and HYG has been stable across timeframes, ranging from 0.87 to 0.96 - a consistent structural relationship.

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Return for Risk

HYDB vs. HYG — Risk / Return Rank

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

HYDB
HYDB Risk / Return Rank: 6161
Overall Rank
HYDB Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
HYDB Sortino Ratio Rank: 6565
Sortino Ratio Rank
HYDB Omega Ratio Rank: 6464
Omega Ratio Rank
HYDB Calmar Ratio Rank: 5353
Calmar Ratio Rank
HYDB Martin Ratio Rank: 6464
Martin Ratio Rank

HYG
HYG Risk / Return Rank: 6060
Overall Rank
HYG Sharpe Ratio Rank: 5353
Sharpe Ratio Rank
HYG Sortino Ratio Rank: 5959
Sortino Ratio Rank
HYG Omega Ratio Rank: 5858
Omega Ratio Rank
HYG Calmar Ratio Rank: 5959
Calmar Ratio Rank
HYG Martin Ratio Rank: 7070
Martin Ratio Rank
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. HYG - Risk-Adjusted Trends Comparison

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


HYDBHYGDifference

Sharpe ratio

Return per unit of total volatility

2.02

1.85

+0.16

Sortino ratio

Return per unit of downside risk

3.04

2.80

+0.24

Omega ratio

Gain probability vs. loss probability

1.39

1.36

+0.04

Calmar ratio

Return relative to maximum drawdown

2.65

2.99

-0.33

Martin ratio

Return relative to average drawdown

11.77

13.22

-1.45

HYDB vs. HYG - Sharpe Ratio Comparison

The current HYDB Sharpe Ratio is 2.02, which is comparable to the HYG Sharpe Ratio of 1.85. The chart below compares the historical Sharpe Ratios of HYDB 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.


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Sharpe Ratios by Period


HYDBHYGDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.02

1.85

+0.16

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.68

0.52

+0.16

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.60

Sharpe Ratio (All Time)

Calculated using the full available price history

0.71

0.46

+0.26

Drawdowns

HYDB vs. HYG - Drawdown Comparison

The maximum HYDB drawdown since its inception was -21.58%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for HYDB and HYG.


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Drawdown Indicators


HYDBHYGDifference

Max Drawdown

Largest peak-to-trough decline

-21.58%

-34.25%

+12.67%

Max Drawdown (1Y)

Largest decline over 1 year

-2.83%

-2.34%

-0.49%

Max Drawdown (3Y)

Largest decline over 3 years

-5.58%

-4.56%

-1.02%

Max Drawdown (5Y)

Largest decline over 5 years

-14.28%

-15.79%

+1.51%

Max Drawdown (10Y)

Largest decline over 10 years

-22.03%

Current Drawdown

Current decline from peak

0.00%

-0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-2.39%

-3.24%

+0.85%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.64%

0.53%

+0.11%

Volatility

HYDB vs. HYG - Volatility Comparison

iShares High Yield Bond Factor ETF (HYDB) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG) have volatilities of 1.17% and 1.22%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.


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Volatility by Period


HYDBHYGDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.17%

1.22%

-0.05%

Volatility (6M)

Calculated over the trailing 6-month period

2.93%

3.00%

-0.07%

Volatility (1Y)

Calculated over the trailing 1-year period

3.78%

3.79%

-0.01%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

7.04%

7.52%

-0.48%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

7.76%

8.29%

-0.53%

HYDB vs. HYG - Expense Ratio Comparison

HYDB has a 0.35% expense ratio, which is lower than HYG's 0.49% expense ratio.


Dividends

HYDB vs. HYG - Dividend Comparison

HYDB's dividend yield for the trailing twelve months is around 6.99%, more than HYG's 5.90% yield.


PositionTTM20252024202320222021202020192018201720162015
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%0.00%0.00%
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


With a correlation of 0.96, HYDB and HYG 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.

HYG has higher volatility (1.22%) compared to HYDB (1.17%). In terms of maximum drawdown, HYDB dropped -21.58% vs HYG's -34.25%.

On 5-year performance, HYDB leads with 4.76% vs 3.87% for HYG. 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.

Over the 5-year period, HYDB has performed better with a 4.76% return vs 3.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

HYDB is cheaper with a 0.35% expense ratio, compared with 0.49% for HYG.

HYDB has the higher dividend yield at 6.99%, compared with 5.90% for HYG.

HYDB tracks BlackRock High Yield Defensive Bond Index, while HYG tracks iBoxx $ Liquid High Yield Index. Their fees differ too: 0.35% for HYDB and 0.49% for HYG.

HYDB currently has the higher Sharpe Ratio (2.02 vs 1.85), 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.

Portfolio Optimizer

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