HYDB vs. HYG
HYDB (iShares High Yield Bond Factor ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both High Yield Bonds funds from iShares - HYDB tracks the BlackRock High Yield Defensive Bond Index while HYG tracks the iBoxx $ Liquid High Yield Index. Both are passively managed. Over the past 5 years, HYDB returned 4.76%/yr vs 3.87%/yr for HYG. Their correlation of 0.87 suggests significant overlap in exposure. HYDB charges 0.35%/yr vs 0.49%/yr for HYG.
Performance
HYDB vs. HYG - Performance Comparison
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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%
HYDB vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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
HYDB
HYG
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.
| HYDB | HYG | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 2.02 | 1.85 | +0.16 |
Sortino ratioReturn per unit of downside risk | 3.04 | 2.80 | +0.24 |
Omega ratioGain probability vs. loss probability | 1.39 | 1.36 | +0.04 |
Calmar ratioReturn relative to maximum drawdown | 2.65 | 2.99 | -0.33 |
Martin ratioReturn relative to average drawdown | 11.77 | 13.22 | -1.45 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| HYDB | HYG | Difference | |
|---|---|---|---|
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
| HYDB | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest 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 DrawdownCurrent decline from peak | 0.00% | -0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -2.39% | -3.24% | +0.85% |
Ulcer IndexDepth 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
| HYDB | HYG | Difference | |
|---|---|---|---|
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.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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.
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