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HYG vs. FALN
Performance
Return for Risk
Drawdowns
Volatility
Dividends

HYG vs. FALN

Last updated Jun 4, 2026

HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and FALN (iShares Fallen Angels USD Bond ETF) are both High Yield Bonds funds from iShares - HYG tracks the Markit iBoxx USD Liquid High Yield Index while FALN tracks the Bloomberg US High Yield Fallen Angel 3% Capped Index. Both are passively managed. Over the past 5 years, HYG returned 3.77%/yr vs 3.78%/yr for FALN. Their correlation of 0.84 suggests significant overlap in exposure. HYG charges 0.49%/yr vs 0.25%/yr for FALN.

Performance

HYG vs. FALN - Performance Comparison

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

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Returns By Period

In the year-to-date period, HYG achieves a 1.32% return, which is significantly lower than FALN's 1.56% 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%

FALN

1D
-0.22%
1M
0.68%
YTD
1.56%
6M
1.36%
1Y
8.66%
3Y*
9.18%
5Y*
3.78%
10Y*
—
*Multi-year figures are annualized to reflect compound growth (CAGR)

HYG vs. FALN - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
FALN
iShares Fallen Angels USD Bond ETF		1.56%8.92%7.68%13.47%-13.79%5.40%14.85%17.42%-4.97%8.70%

Correlation

The correlation between HYG and FALN is 0.92, 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

0.92

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

0.93

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

0.94

Correlation (All Time)
Calculated using the full available price history since Jun 20, 2016

0.84

The correlation between HYG and FALN has been stable across timeframes, ranging from 0.84 to 0.94 - a consistent structural relationship.

HYG vs. FALN - Sectors Allocation Comparison

Sectors
HYG
FALN

Utilities

99.6%

-

Real Estate

0.4%
100.0%

Basic Materials

-

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Energy

-

-

Financial Services

-

-

Healthcare

-

-

Industrials

-

-

Technology

-

-

Utilities

HYG
99.6%
FALN

-

Real Estate

HYG
0.4%
FALN
100.0%

Basic Materials

HYG

-

FALN

-

Communication Services

HYG

-

FALN

-

Consumer Cyclical

HYG

-

FALN

-

Consumer Defensive

HYG

-

FALN

-

Energy

HYG

-

FALN

-

Financial Services

HYG

-

FALN

-

Healthcare

HYG

-

FALN

-

Industrials

HYG

-

FALN

-

Technology

HYG

-

FALN

-

Compare stocks, funds, or ETFs

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iShares iBoxx $ High Yield Corporate Bond ETF

iShares Fallen Angels USD Bond ETF

Often compared with HYG:
HYG vs. LQDHYG vs. JNKHYG vs. SPHYHYG vs. AGGHYG vs. USHYHYG vs. HYGHHYG vs. SHYG
Often compared with FALN:
FALN vs. ANGLFALN vs. SCYBFALN vs. IMTBFALN vs. BKLNFALN vs. FLOTFALN vs. DBAFALN vs. BAR

Return for Risk

HYG vs. FALN — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
HYG
HYG Risk / Return Rank: 5555
Overall Rank
HYG Sharpe Ratio Rank: 4949
Sharpe Ratio Rank
HYG Sortino Ratio Rank: 5252
Sortino Ratio Rank
HYG Omega Ratio Rank: 5252
Omega Ratio Rank
HYG Calmar Ratio Rank: 5555
Calmar Ratio Rank
HYG Martin Ratio Rank: 6666
Martin Ratio Rank
FALN
FALN Risk / Return Rank: 5454
Overall Rank
FALN Sharpe Ratio Rank: 5555
Sharpe Ratio Rank
FALN Sortino Ratio Rank: 5757
Sortino Ratio Rank
FALN Omega Ratio Rank: 6060
Omega Ratio Rank
FALN Calmar Ratio Rank: 4444
Calmar Ratio Rank
FALN Martin Ratio Rank: 5353
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.

HYG vs. FALN - Risk-Adjusted Trends 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.

HYGFALNDifference
Sharpe ratioReturn per unit of total volatility
1.72
1.91

-0.20

Sortino ratioReturn per unit of downside risk
2.59
2.78

-0.19

Omega ratioGain probability vs. loss probability

1.33

1.37

-0.04

Calmar ratioReturn relative to maximum drawdown

2.79

2.20

+0.60

Martin ratioReturn relative to average drawdown

12.34

9.17

+3.17

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HYG vs. FALN - Sharpe Ratio Comparison

The current HYG Sharpe Ratio is 1.72, which is comparable to the FALN Sharpe Ratio of 1.91. The chart below compares the historical Sharpe Ratios of HYG and FALN, 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

HYGFALNDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.72

1.91

-0.20

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.50

0.52

-0.02

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.60

—

—

Sharpe Ratio (All Time)

Calculated using the full available price history

0.46

0.74

-0.28

Drawdowns

HYG vs. FALN - Drawdown Comparison

The maximum HYG drawdown since its inception was -34.25%, 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.

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Drawdown Indicators

HYGFALNDifference

Max Drawdown

Largest peak-to-trough decline

-34.25%

-29.22%

-5.03%

Max Drawdown (1Y)

Largest decline over 1 year

-2.34%

-3.96%

+1.62%

Max Drawdown (3Y)

Largest decline over 3 years

-4.56%

-5.92%

+1.36%

Max Drawdown (5Y)

Largest decline over 5 years

-15.79%

-18.78%

+2.99%

Max Drawdown (10Y)

Largest decline over 10 years

-22.03%

—

—

Current Drawdown

Current decline from peak

-0.28%

-0.26%

-0.02%

Average Drawdown

Average peak-to-trough decline

-3.24%

-3.32%

+0.08%

Ulcer Index

Depth and duration of drawdowns from previous peaks

0.53%

0.95%

-0.42%

Volatility

HYG vs. FALN - Volatility Comparison

The current volatility for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is 1.21%, while iShares Fallen Angels USD Bond ETF (FALN) has a volatility of 1.38%. 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.

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Volatility by Period

HYGFALNDifference

Volatility (1M)

Calculated over the trailing 1-month period

1.21%

1.38%

-0.17%

Volatility (6M)

Calculated over the trailing 6-month period

3.01%

3.64%

-0.63%

Volatility (1Y)

Calculated over the trailing 1-year period

3.81%

4.54%

-0.73%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

7.53%

7.31%

+0.22%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

8.29%

8.95%

-0.66%

HYG vs. FALN - Expense Ratio Comparison

HYG has a 0.49% expense ratio, which is higher than FALN's 0.25% expense ratio.

Dividends

HYG vs. FALN - Dividend Comparison

HYG's dividend yield for the trailing twelve months is around 5.92%, less than FALN's 6.46% yield.

PositionTTM20252024202320222021202020192018201720162015
FALN
iShares Fallen Angels USD Bond ETF		6.46%6.31%6.24%5.37%5.08%3.40%5.14%5.35%5.97%6.98%3.55%0.00%
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

With a correlation of 0.92, HYG and FALN 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.

FALN has higher volatility (1.38%) compared to HYG (1.21%). In terms of maximum drawdown, HYG dropped -34.25% vs FALN's -29.22%.

On 5-year performance, FALN leads with 3.78% vs 3.77% for HYG. On fees, FALN is cheaper at 0.25% per year. On volatility, HYG has been the lower-risk option at 1.21%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 5-year period, FALN has performed better with a 3.78% return vs 3.77%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

FALN is cheaper with a 0.25% expense ratio, compared with 0.49% for HYG.

FALN has the higher dividend yield at 6.46%, compared with 5.92% for HYG.

HYG tracks Markit iBoxx USD Liquid High Yield Index, while FALN tracks Bloomberg US High Yield Fallen Angel 3% Capped Index. Their fees differ too: 0.49% for HYG and 0.25% for FALN.

FALN currently has the higher Sharpe Ratio (1.91 vs 1.72), 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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