HYG vs. HYD
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and HYD (VanEck Vectors High-Yield Municipal Index ETF) are both exchange-traded funds - HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index, while HYD is a Municipal Bonds fund tracking the Bloomberg Barclays Municipal Custom High Yield Composite Index. Both are passively managed. Over the past 10 years, HYG returned 4.91%/yr vs 2.03%/yr for HYD. At a 0.19 correlation, their price movements are largely independent. HYG charges 0.49%/yr vs 0.35%/yr for HYD.
Performance
HYG vs. HYD - Performance Comparison
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Returns By Period
In the year-to-date period, HYG achieves a 1.51% return, which is significantly lower than HYD's 2.27% return. Over the past 10 years, HYG has outperformed HYD with an annualized return of 4.91%, while HYD has yielded a comparatively lower 2.03% annualized return.
HYG
- 1D
- 0.19%
- 1M
- 0.40%
- YTD
- 1.51%
- 6M
- 1.84%
- 1Y
- 6.51%
- 3Y*
- 8.57%
- 5Y*
- 3.81%
- 10Y*
- 4.91%
HYD
- 1D
- 0.16%
- 1M
- 1.14%
- YTD
- 2.27%
- 6M
- 3.07%
- 1Y
- 8.07%
- 3Y*
- 4.74%
- 5Y*
- -0.07%
- 10Y*
- 2.03%
HYG vs. HYD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.51% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
HYD VanEck Vectors High-Yield Municipal Index ETF | 2.27% | 2.83% | 4.94% | 6.52% | -15.97% | 5.05% | 0.17% | 9.34% | 2.19% | 9.78% |
Correlation
The correlation between HYG and HYD is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.48 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.52 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.51 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.31 |
Correlation (All Time) Calculated using the full available price history since Feb 6, 2009 | 0.19 |
Over the past year, HYG and HYD have become more correlated (0.48) than their long-term average of 0.19, meaning their price movements have been converging.
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Return for Risk
HYG vs. HYD — Risk / Return Rank
HYG
HYD
HYG vs. HYD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and VanEck Vectors High-Yield Municipal Index ETF (HYD). 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 | HYD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.31 | ||
| Sortino ratioReturn per unit of downside risk | -0.37 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.42 | -0.10 |
| Calmar ratioReturn relative to maximum drawdown | 2.79 | 2.53 | +0.26 |
| Martin ratioReturn relative to average drawdown | 12.34 | 8.70 | +3.65 |
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 | HYD | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.72 | 2.02 | -0.31 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.51 | -0.01 | +0.52 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.59 | 0.16 | +0.43 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 0.45 | +0.01 |
Drawdowns
HYG vs. HYD - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.25%, roughly equal to the maximum HYD drawdown of -35.61%. Use the drawdown chart below to compare losses from any high point for HYG and HYD.
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Drawdown Indicators
| HYG | HYD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.25% | -35.61% | +1.36% |
Max Drawdown (1Y)Largest decline over 1 year | -2.34% | -3.21% | +0.87% |
Max Drawdown (3Y)Largest decline over 3 years | -4.56% | -7.23% | +2.67% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | -20.72% | +4.93% |
Max Drawdown (10Y)Largest decline over 10 years | -22.03% | -35.61% | +13.58% |
Current DrawdownCurrent decline from peak | -0.09% | -1.90% | +1.81% |
Average DrawdownAverage peak-to-trough decline | -3.24% | -4.32% | +1.08% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.53% | 0.93% | -0.40% |
Volatility
HYG vs. HYD - Volatility Comparison
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a higher volatility of 1.21% compared to VanEck Vectors High-Yield Municipal Index ETF (HYD) at 1.14%. This indicates that HYG's price experiences larger fluctuations and is considered to be riskier than HYD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HYG | HYD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.21% | 1.14% | +0.07% |
Volatility (6M)Calculated over the trailing 6-month period | 3.01% | 2.98% | +0.03% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.81% | 4.02% | -0.21% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.53% | 6.45% | +1.08% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.29% | 12.60% | -4.31% |
HYG vs. HYD - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is higher than HYD's 0.35% expense ratio.
Dividends
HYG vs. HYD - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.91%, more than HYD's 4.25% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYD VanEck Vectors High-Yield Municipal Index ETF | 4.25% | 4.29% | 4.29% | 4.13% | 3.96% | 3.50% | 4.01% | 4.08% | 4.43% | 4.29% | 4.58% | 4.82% |
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
HYG and HYD have a correlation of 0.48, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HYG has higher volatility (1.21%) compared to HYD (1.14%). In terms of maximum drawdown, HYG dropped -34.25% vs HYD's -35.61%.
On 10-year performance, HYG leads with 4.91% vs 2.03% for HYD. On fees, HYD is cheaper at 0.35% 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 4.91% return vs 2.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
HYD is cheaper with a 0.35% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.91%, compared with 4.25% for HYD.
HYG is categorized as High Yield Bonds, while HYD is Municipal Bonds. HYG tracks Markit iBoxx USD Liquid High Yield Index, while HYD tracks Bloomberg Barclays Municipal Custom High Yield Composite Index. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.49% for HYG and 0.35% for HYD.
HYD currently has the higher Sharpe Ratio (2.02 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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