HYG vs. IBHG
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and IBHG (iShares iBonds 2027 Term High Yield and Income ETF) are both High Yield Bonds funds from iShares - HYG tracks the iBoxx $ Liquid High Yield Index while IBHG tracks the Bloomberg 2027 Term High Yield and Income Index - Benchmark TR Gross. Both are passively managed. Over the past 3 years, HYG returned 8.48%/yr vs 7.41%/yr for IBHG. Their correlation of 0.85 suggests significant overlap in exposure. HYG charges 0.49%/yr vs 0.35%/yr for IBHG.
Performance
HYG vs. IBHG - Performance Comparison
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Returns By Period
In the year-to-date period, HYG achieves a 1.32% return, which is significantly higher than IBHG's 1.06% 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%
IBHG
- 1D
- -0.09%
- 1M
- 0.14%
- YTD
- 1.06%
- 6M
- 1.66%
- 1Y
- 4.71%
- 3Y*
- 7.41%
- 5Y*
- —
- 10Y*
- —
HYG vs. IBHG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.32% | 8.59% | 7.97% | 11.54% | -10.98% | 0.83% |
IBHG iShares iBonds 2027 Term High Yield and Income ETF | 1.06% | 6.90% | 7.42% | 11.27% | -8.88% | 1.07% |
Correlation
The correlation between HYG and IBHG is 0.73, 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 | 0.73 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.81 |
Correlation (All Time) Calculated using the full available price history since Jul 12, 2021 | 0.85 |
The correlation between HYG and IBHG shifts across timeframes, from 0.73 (1 year) to 0.85 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
HYG vs. IBHG — Risk / Return Rank
HYG
IBHG
HYG vs. IBHG - 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 iBonds 2027 Term High Yield and Income ETF (IBHG). 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 | IBHG | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.72 | 2.24 | -0.53 |
Sortino ratioReturn per unit of downside risk | 2.59 | 3.50 | -0.91 |
Omega ratioGain probability vs. loss probability | 1.33 | 1.43 | -0.10 |
Calmar ratioReturn relative to maximum drawdown | 2.79 | 6.55 | -3.75 |
Martin ratioReturn relative to average drawdown | 12.34 | 24.03 | -11.69 |
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 | IBHG | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.72 | 2.24 | -0.53 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.50 | — | — |
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 | 0.57 | -0.11 |
Drawdowns
HYG vs. IBHG - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.25%, which is greater than IBHG's maximum drawdown of -13.85%. Use the drawdown chart below to compare losses from any high point for HYG and IBHG.
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Drawdown Indicators
| HYG | IBHG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.25% | -13.85% | -20.40% |
Max Drawdown (1Y)Largest decline over 1 year | -2.34% | -0.73% | -1.61% |
Max Drawdown (3Y)Largest decline over 3 years | -4.56% | -3.39% | -1.17% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | — | — |
Max Drawdown (10Y)Largest decline over 10 years | -22.03% | — | — |
Current DrawdownCurrent decline from peak | -0.28% | -0.13% | -0.15% |
Average DrawdownAverage peak-to-trough decline | -3.24% | -2.67% | -0.57% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.53% | 0.20% | +0.33% |
Volatility
HYG vs. IBHG - Volatility Comparison
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a higher volatility of 1.21% compared to iShares iBonds 2027 Term High Yield and Income ETF (IBHG) at 0.60%. This indicates that HYG's price experiences larger fluctuations and is considered to be riskier than IBHG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HYG | IBHG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.21% | 0.60% | +0.61% |
Volatility (6M)Calculated over the trailing 6-month period | 3.01% | 1.53% | +1.48% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.81% | 2.10% | +1.71% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.53% | 6.37% | +1.16% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.29% | 6.37% | +1.92% |
HYG vs. IBHG - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is higher than IBHG's 0.35% expense ratio.
Dividends
HYG vs. IBHG - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.92%, less than IBHG's 6.07% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
IBHG iShares iBonds 2027 Term High Yield and Income ETF | 6.07% | 6.33% | 7.02% | 6.66% | 5.62% | 2.13% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
HYG and IBHG have a correlation of 0.73, 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 IBHG (0.60%). In terms of maximum drawdown, HYG dropped -34.25% vs IBHG's -13.85%.
On 3-year performance, HYG leads with 8.48% vs 7.41% for IBHG. On fees, IBHG is cheaper at 0.35% per year. On volatility, IBHG has been the lower-risk option at 0.60%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, HYG has performed better with a 8.48% return vs 7.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IBHG is cheaper with a 0.35% expense ratio, compared with 0.49% for HYG.
IBHG has the higher dividend yield at 6.07%, compared with 5.92% for HYG.
HYG tracks iBoxx $ Liquid High Yield Index, while IBHG tracks Bloomberg 2027 Term High Yield and Income Index - Benchmark TR Gross. Their fees differ too: 0.49% for HYG and 0.35% for IBHG.
IBHG currently has the higher Sharpe Ratio (2.24 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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