HYG vs. FALN
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 10 years, HYG returned 5.15%/yr vs 6.80%/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
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Returns By Period
In the year-to-date period, HYG achieves a 1.58% return, which is significantly lower than FALN's 2.46% return. Over the past 10 years, HYG has underperformed FALN with an annualized return of 5.15%, while FALN has yielded a comparatively higher 6.80% annualized return.
HYG
- 1D
- 0.04%
- 1M
- 0.14%
- YTD
- 1.58%
- 6M
- 1.56%
- 1Y
- 5.68%
- 3Y*
- 8.74%
- 5Y*
- 3.66%
- 10Y*
- 5.15%
FALN
- 1D
- 0.15%
- 1M
- 1.15%
- YTD
- 2.46%
- 6M
- 2.42%
- 1Y
- 7.88%
- 3Y*
- 9.38%
- 5Y*
- 3.76%
- 10Y*
- 6.80%
HYG vs. FALN - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.58% | 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 | 2.46% | 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 0.93, 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 | 0.93 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.94 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.84 |
Correlation (All Time) Calculated using the full available price history since Jun 17, 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.
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Return for Risk
HYG vs. FALN — Risk / Return Rank
HYG
FALN
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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| HYG | FALN | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.25 | ||
| Sortino ratioReturn per unit of downside risk | -0.28 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.33 | -0.05 |
| Calmar ratioReturn relative to maximum drawdown | 2.44 | 2.00 | +0.44 |
| Martin ratioReturn relative to average drawdown | 10.70 | 8.32 | +2.38 |
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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
| HYG | FALN | Difference | |
|---|---|---|---|
Max DrawdownLargest 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% | -29.22% | +7.19% |
Current DrawdownCurrent decline from peak | -0.20% | 0.00% | -0.20% |
Average DrawdownAverage peak-to-trough decline | -3.23% | -3.30% | +0.07% |
Ulcer IndexDepth 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 1.08%, while iShares Fallen Angels USD Bond ETF (FALN) has a volatility of 1.17%. 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
| HYG | FALN | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.08% | 1.17% | -0.09% |
Volatility (6M)Calculated over the trailing 6-month period | 3.11% | 3.73% | -0.62% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.87% | 4.59% | -0.72% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.54% | 7.33% | +0.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.27% | 8.92% | -0.65% |
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 5.91%, less than FALN's 6.41% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FALN iShares Fallen Angels USD Bond ETF | 6.41% | 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 | 5.91% | 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 0.93, 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 (1.17%) compared to HYG (1.08%). In terms of maximum drawdown, HYG dropped -34.25% vs FALN's -29.22%.
On 10-year performance, FALN leads with 6.80% vs 5.15% for HYG. On fees, FALN is cheaper at 0.25% 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, FALN has performed better with a 6.80% return vs 5.15%. 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 6.41%, compared with 5.91% 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 (1.72 vs 1.48), 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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