HYG vs. BND
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and BND (Vanguard Total Bond Market ETF) are both exchange-traded funds - HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index, while BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index. Both are passively managed. Over the past 10 years, HYG returned 4.94%/yr vs 1.58%/yr for BND. At a 0.10 correlation, their price movements are largely independent. HYG charges 0.49%/yr vs 0.03%/yr for BND.
Performance
HYG vs. BND - Performance Comparison
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Returns By Period
In the year-to-date period, HYG achieves a 1.32% return, which is significantly higher than BND's 0.27% return. Over the past 10 years, HYG has outperformed BND with an annualized return of 4.94%, while BND has yielded a comparatively lower 1.58% annualized return.
HYG
- 1D
- -0.28%
- 1M
- 0.36%
- YTD
- 1.32%
- 6M
- 1.73%
- 1Y
- 6.51%
- 3Y*
- 8.48%
- 5Y*
- 3.77%
- 10Y*
- 4.94%
BND
- 1D
- -0.19%
- 1M
- 0.27%
- YTD
- 0.27%
- 6M
- 0.12%
- 1Y
- 5.11%
- 3Y*
- 3.96%
- 5Y*
- 0.09%
- 10Y*
- 1.58%
HYG vs. BND - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.32% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
BND Vanguard Total Bond Market ETF | 0.27% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
Correlation
The correlation between HYG and BND is 0.59, 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 | 0.59 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.63 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.53 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.32 |
Correlation (All Time) Calculated using the full available price history since Apr 12, 2007 | 0.10 |
Over the past year, HYG and BND have become more correlated (0.59) than their long-term average of 0.10, meaning their price movements have been converging.
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Return for Risk
HYG vs. BND — Risk / Return Rank
HYG
BND
HYG vs. BND - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and Vanguard Total Bond Market ETF (BND). 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.
| HYG | BND | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.36 | ||
| Sortino ratioReturn per unit of downside risk | +0.56 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.24 | +0.09 |
| Calmar ratioReturn relative to maximum drawdown | 2.79 | 1.92 | +0.88 |
| Martin ratioReturn relative to average drawdown | 12.34 | 5.80 | +6.53 |
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
| HYG | BND | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.72 | 1.36 | +0.36 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.50 | 0.01 | +0.49 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.60 | 0.29 | +0.31 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 0.59 | -0.13 |
Drawdowns
HYG vs. BND - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.25%, which is greater than BND's maximum drawdown of -18.58%. Use the drawdown chart below to compare losses from any high point for HYG and BND.
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Drawdown Indicators
| HYG | BND | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.25% | -18.58% | -15.67% |
Max Drawdown (1Y)Largest decline over 1 year | -2.34% | -2.68% | +0.34% |
Max Drawdown (3Y)Largest decline over 3 years | -4.56% | -5.92% | +1.36% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | -17.91% | +2.12% |
Max Drawdown (10Y)Largest decline over 10 years | -22.03% | -18.58% | -3.45% |
Current DrawdownCurrent decline from peak | -0.28% | -2.37% | +2.09% |
Average DrawdownAverage peak-to-trough decline | -3.24% | -3.06% | -0.18% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.53% | 0.88% | -0.35% |
Volatility
HYG vs. BND - Volatility Comparison
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and Vanguard Total Bond Market ETF (BND) have volatilities of 1.21% and 1.23%, 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
| HYG | BND | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.21% | 1.23% | -0.02% |
Volatility (6M)Calculated over the trailing 6-month period | 3.01% | 2.66% | +0.35% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.81% | 3.78% | +0.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.53% | 6.02% | +1.51% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.29% | 5.53% | +2.76% |
HYG vs. BND - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is higher than BND's 0.03% expense ratio.
Dividends
HYG vs. BND - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.92%, more than BND's 3.97% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.97% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.92% | 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
HYG and BND have a correlation of 0.59, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
BND has higher volatility (1.23%) compared to HYG (1.21%). In terms of maximum drawdown, HYG dropped -34.25% vs BND's -18.58%.
On 10-year performance, HYG leads with 4.94% vs 1.58% for BND. On fees, BND is cheaper at 0.03% per year. Their volatility is very similar. 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 4.94% return vs 1.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND is cheaper with a 0.03% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.92%, compared with 3.97% for BND.
HYG is categorized as High Yield Bonds, while BND is Total Bond Market. HYG tracks Markit iBoxx USD Liquid High Yield Index, while BND tracks Bloomberg U.S. Aggregate Float Adjusted Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.49% for HYG and 0.03% for BND.
HYG currently has the higher Sharpe Ratio (1.72 vs 1.36), 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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