HYG vs. HYEM

Last updated Jun 4, 2026

HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and HYEM (VanEck Vectors Emerging Markets High Yield Bond ETF) are both High Yield Bonds funds - HYG tracks the iBoxx $ Liquid High Yield Index while HYEM tracks the BofA Merrill Lynch Diversified High Yield US Emerging Markets Corporate Plus Index. Both are passively managed. Over the past 10 years, HYG returned 4.94%/yr vs 4.65%/yr for HYEM. At a 0.46 correlation, their price movements are largely independent. HYG charges 0.49%/yr vs 0.40%/yr for HYEM.

Performance

HYG vs. HYEM - Performance Comparison

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

Returns By Period

In the year-to-date period, HYG achieves a 1.32% return, which is significantly lower than HYEM's 3.92% return. Over the past 10 years, HYG has outperformed HYEM with an annualized return of 4.94%, while HYEM has yielded a comparatively lower 4.65% annualized 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%

HYEM

• 1D: -0.10%
• 1M: 1.26%
• YTD: 3.92%
• 6M: 4.87%
• 1Y: 10.30%
• 3Y*: 11.00%
• 5Y*: 3.04%
• 10Y*: 4.65%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HYG vs. HYEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
HYEM VanEck Vectors Emerging Markets High Yield Bond ETF	3.92%	9.24%	12.14%	8.35%	-13.39%	-1.31%	6.87%	12.85%	-3.38%	7.94%

Correlation

The correlation between HYG and HYEM is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.50
Correlation (All Time) Calculated using the full available price history since May 15, 2012	0.46

The correlation between HYG and HYEM shifts across timeframes, from 0.46 (all time) to 0.60 (5 years), reflecting how their relationship changes across market environments.

HYG vs. HYEM - Sectors Allocation Comparison

Sectors	HYG	HYEM
Utilities	99.6%	-
Real Estate	0.4%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	100.0%
Technology	-	-

Return for Risk

HYG vs. HYEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HYG

HYG Risk / Return Rank: 55
HYG Sharpe Ratio Rank: 49
HYG Sortino Ratio Rank: 52
HYG Omega Ratio Rank: 52
HYG Calmar Ratio Rank: 55
HYG Martin Ratio Rank: 66

HYEM

HYEM Risk / Return Rank: 76
HYEM Sharpe Ratio Rank: 72
HYEM Sortino Ratio Rank: 77
HYEM Omega Ratio Rank: 78
HYEM Calmar Ratio Rank: 75
HYEM Martin Ratio Rank: 79

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. HYEM - 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 Emerging Markets High Yield Bond ETF (HYEM). 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	HYEM	Difference
Sharpe ratio Return per unit of total volatility	1.72	2.39	-0.67
Sortino ratio Return per unit of downside risk	2.59	3.50	-0.91
Omega ratio Gain probability vs. loss probability	1.33	1.47	-0.14
Calmar ratio Return relative to maximum drawdown	2.79	3.79	-1.00
Martin ratio Return relative to average drawdown	12.34	15.48	-3.14
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. HYEM - Sharpe Ratio Comparison

The current HYG Sharpe Ratio is 1.72, which is comparable to the HYEM Sharpe Ratio of 2.39. The chart below compares the historical Sharpe Ratios of HYG and HYEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HYG	HYEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.72	2.39	-0.67
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.50	0.41	+0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.60	0.50	+0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	0.54	-0.08

Drawdowns

HYG vs. HYEM - Drawdown Comparison

The maximum HYG drawdown since its inception was -34.25%, which is greater than HYEM's maximum drawdown of -30.96%. Use the drawdown chart below to compare losses from any high point for HYG and HYEM.

Drawdown Indicators

	HYG	HYEM	Difference
Max Drawdown Largest peak-to-trough decline	-34.25%	-30.96%	-3.29%
Max Drawdown (1Y) Largest decline over 1 year	-2.34%	-2.73%	+0.39%
Max Drawdown (3Y) Largest decline over 3 years	-4.56%	-5.23%	+0.67%
Max Drawdown (5Y) Largest decline over 5 years	-15.79%	-26.30%	+10.51%
Max Drawdown (10Y) Largest decline over 10 years	-22.03%	-30.96%	+8.93%
Current Drawdown Current decline from peak	-0.28%	-0.10%	-0.18%
Average Drawdown Average peak-to-trough decline	-3.24%	-4.40%	+1.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.53%	0.67%	-0.14%

Volatility

HYG vs. HYEM - Volatility Comparison

The current volatility for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is 1.21%, while VanEck Vectors Emerging Markets High Yield Bond ETF (HYEM) has a volatility of 1.33%. This indicates that HYG experiences smaller price fluctuations and is considered to be less risky than HYEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HYG	HYEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.21%	1.33%	-0.12%
Volatility (6M) Calculated over the trailing 6-month period	3.01%	3.24%	-0.23%
Volatility (1Y) Calculated over the trailing 1-year period	3.81%	4.33%	-0.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.53%	7.49%	+0.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.29%	9.27%	-0.98%

HYG vs. HYEM - Expense Ratio Comparison

HYG has a 0.49% expense ratio, which is higher than HYEM's 0.40% expense ratio.

Dividends

HYG vs. HYEM - Dividend Comparison

HYG's dividend yield for the trailing twelve months is around 5.92%, less than HYEM's 6.52% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYEM VanEck Vectors Emerging Markets High Yield Bond ETF	6.52%	6.67%	6.34%	6.27%	6.47%	5.33%	5.56%	6.14%	5.71%	5.86%	6.25%	7.64%
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

Can I hold both HYG and HYEM in my portfolio?

HYG and HYEM have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HYG or HYEM?

HYEM has higher volatility (1.33%) compared to HYG (1.21%). In terms of maximum drawdown, HYG dropped -34.25% vs HYEM's -30.96%.

Which ETF is better, HYG or HYEM?

On 10-year performance, HYG leads with 4.94% vs 4.65% for HYEM. On fees, HYEM is cheaper at 0.40% 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.

Which ETF has performed better, HYG or HYEM?

Over the 10-year period, HYG has performed better with a 4.94% return vs 4.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HYG or HYEM?

HYEM is cheaper with a 0.40% expense ratio, compared with 0.49% for HYG.

Which ETF pays a higher dividend yield, HYG or HYEM?

HYEM has the higher dividend yield at 6.52%, compared with 5.92% for HYG.

What is the main difference between HYG and HYEM?

HYG tracks iBoxx $ Liquid High Yield Index, while HYEM tracks BofA Merrill Lynch Diversified High Yield US Emerging Markets Corporate Plus Index. They also come from different issuers: iShares and VanEck. Their fees differ too: 0.49% for HYG and 0.40% for HYEM.

Which has better risk-adjusted returns?

HYEM currently has the higher Sharpe Ratio (2.39 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.