HYG vs. HEZU
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and HEZU (iShares Currency Hedged MSCI Eurozone ETF) are both exchange-traded funds - HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index, while HEZU is a Europe Equities fund tracking the MSCI EMU 100% USD Hedged Index. Both are passively managed. Over the past 10 years, HYG returned 5.03%/yr vs 12.74%/yr for HEZU. A 0.61 correlation means they provide meaningful diversification when combined. HYG charges 0.49%/yr vs 0.52%/yr for HEZU.
Performance
HYG vs. HEZU - Performance Comparison
Loading charts...
Returns By Period
In the year-to-date period, HYG achieves a 1.78% return, which is significantly lower than HEZU's 12.90% return. Over the past 10 years, HYG has underperformed HEZU with an annualized return of 5.03%, while HEZU has yielded a comparatively higher 12.74% annualized return.
HYG
- 1D
- 0.13%
- 1M
- 1.25%
- YTD
- 1.78%
- 6M
- 2.29%
- 1Y
- 6.95%
- 3Y*
- 8.47%
- 5Y*
- 3.83%
- 10Y*
- 5.03%
HEZU
- 1D
- 0.71%
- 1M
- 7.52%
- YTD
- 12.90%
- 6M
- 13.50%
- 1Y
- 25.79%
- 3Y*
- 18.13%
- 5Y*
- 12.82%
- 10Y*
- 12.74%
HYG vs. HEZU - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.78% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
HEZU iShares Currency Hedged MSCI Eurozone ETF | 12.90% | 25.93% | 10.63% | 22.98% | -9.54% | 23.51% | 0.52% | 29.48% | -10.23% | 14.26% |
Correlation
The correlation between HYG and HEZU is 0.63, 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 | 0.63 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.56 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Aug 7, 2014 | 0.61 |
The correlation between HYG and HEZU has been stable across timeframes, ranging from 0.56 to 0.63 - a consistent structural relationship.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
Return for Risk
HYG vs. HEZU — Risk / Return Rank
HYG
HEZU
HYG vs. HEZU - 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 Currency Hedged MSCI Eurozone ETF (HEZU). 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 | HEZU | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.13 | ||
| Sortino ratioReturn per unit of downside risk | +0.31 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.31 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.98 | 2.36 | +0.62 |
| Martin ratioReturn relative to average drawdown | 13.11 | 9.29 | +3.82 |
Loading charts...
Drawdowns
HYG vs. HEZU - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.25%, smaller than the maximum HEZU drawdown of -38.80%. Use the drawdown chart below to compare losses from any high point for HYG and HEZU.
Loading charts...
Drawdown Indicators
| HYG | HEZU | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.25% | -38.80% | +4.55% |
Max Drawdown (1Y)Largest decline over 1 year | -2.34% | -10.95% | +8.61% |
Max Drawdown (3Y)Largest decline over 3 years | -4.56% | -14.83% | +10.27% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | -22.79% | +7.00% |
Max Drawdown (10Y)Largest decline over 10 years | -22.03% | -38.80% | +16.77% |
Current DrawdownCurrent decline from peak | 0.00% | 0.00% | 0.00% |
Average DrawdownAverage peak-to-trough decline | -3.24% | -5.82% | +2.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.53% | 2.78% | -2.25% |
Volatility
HYG vs. HEZU - Volatility Comparison
The current volatility for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is 1.31%, while iShares Currency Hedged MSCI Eurozone ETF (HEZU) has a volatility of 5.72%. This indicates that HYG experiences smaller price fluctuations and is considered to be less risky than HEZU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
Loading charts...
Volatility by Period
| HYG | HEZU | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.31% | 5.72% | -4.41% |
Volatility (6M)Calculated over the trailing 6-month period | 3.08% | 13.13% | -10.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.87% | 15.51% | -11.64% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.53% | 16.59% | -9.06% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.29% | 18.43% | -10.14% |
HYG vs. HEZU - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is lower than HEZU's 0.52% expense ratio.
Dividends
HYG vs. HEZU - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.89%, more than HEZU's 2.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HEZU iShares Currency Hedged MSCI Eurozone ETF | 2.59% | 2.92% | 2.77% | 2.52% | 23.26% | 2.25% | 2.32% | 5.40% | 3.48% | 1.92% | 3.11% | 2.68% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.89% | 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 HEZU have a correlation of 0.63, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HEZU has higher volatility (5.72%) compared to HYG (1.31%). In terms of maximum drawdown, HYG dropped -34.25% vs HEZU's -38.80%.
On 10-year performance, HEZU leads with 12.74% vs 5.03% for HYG. On fees, HYG is cheaper at 0.49% per year. On volatility, HYG has been the lower-risk option at 1.31%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HEZU has performed better with a 12.74% return vs 5.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HYG is cheaper with a 0.49% expense ratio, compared with 0.52% for HEZU.
HYG has the higher dividend yield at 5.89%, compared with 2.59% for HEZU.
HYG is categorized as High Yield Bonds, while HEZU is Europe Equities. HYG tracks Markit iBoxx USD Liquid High Yield Index, while HEZU tracks MSCI EMU 100% USD Hedged Index. Their fees differ too: 0.49% for HYG and 0.52% for HEZU.
HYG currently has the higher Sharpe Ratio (1.81 vs 1.67), 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.
Find the right allocation for HYG and HEZU
Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.
Open Portfolio Optimizer