HYG vs. FALN
Compare and contrast key facts about iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and iShares Fallen Angels USD Bond ETF (FALN).
HYG and FALN are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. FALN is a passively managed fund by iShares that tracks the performance of the Bloomberg US High Yield Fallen Angel 3% Capped Index. It was launched on Jun 14, 2016. Both HYG and FALN 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: HYG or FALN.
Key characteristics
| HYG | FALN | |
|---|---|---|
| YTD Return | 8.25% | 7.81% |
| 1Y Return | 13.37% | 13.01% |
| 3Y Return (Ann) | 2.76% | 1.87% |
| 5Y Return (Ann) | 3.50% | 5.54% |
| Sharpe Ratio | 2.91 | 2.80 |
| Sortino Ratio | 4.53 | 4.24 |
| Omega Ratio | 1.57 | 1.55 |
| Calmar Ratio | 2.48 | 1.81 |
| Martin Ratio | 21.88 | 19.28 |
| Ulcer Index | 0.62% | 0.70% |
| Daily Std Dev | 4.65% | 4.79% |
| Max Drawdown | -34.24% | -29.22% |
| Current Drawdown | -0.71% | -0.63% |
Correlation
The correlation between HYG and FALN is 0.83, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
HYG vs. FALN - Performance Comparison
In the year-to-date period, HYG achieves a 8.25% return, which is significantly higher than FALN's 7.81% 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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HYG vs. FALN - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is higher than FALN's 0.25% expense ratio.
Risk-Adjusted Performance
HYG vs. FALN - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and iShares Fallen Angels USD Bond ETF (FALN). 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
HYG vs. FALN - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.90%, less than FALN's 6.09% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.90% | 5.75% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% | 5.69% | 6.10% |
FALN iShares Fallen Angels USD Bond ETF | 6.09% | 5.38% | 5.08% | 3.39% | 5.14% | 5.35% | 5.97% | 6.99% | 3.54% | 0.00% | 0.00% | 0.00% |
Drawdowns
HYG vs. FALN - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.24%, which is greater than FALN's maximum drawdown of -29.22%. Use the drawdown chart below to compare losses from any high point for HYG and FALN. For additional features, visit the drawdowns tool.
Volatility
HYG vs. FALN - Volatility Comparison
The current volatility for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is 1.13%, while iShares Fallen Angels USD Bond ETF (FALN) has a volatility of 1.41%. This indicates that HYG experiences smaller price fluctuations and is considered to be less risky than FALN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.