HYG vs. NAIL

Last updated Jun 9, 2026

HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and NAIL (Direxion Daily Homebuilders & Supplies Bull 3X Shares) are both exchange-traded funds - HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index, while NAIL is a Leveraged Equities fund tracking the Dow Jones U.S. Select Home Construction Index (300%). Both are passively managed. Over the past 10 years, HYG returned 4.88%/yr vs 3.80%/yr for NAIL. A 0.53 correlation means they provide meaningful diversification when combined. HYG charges 0.49%/yr vs 0.99%/yr for NAIL.

Performance

HYG vs. NAIL - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HYG achieves a 1.14% return, which is significantly higher than NAIL's -23.54% return. Over the past 10 years, HYG has outperformed NAIL with an annualized return of 4.88%, while NAIL has yielded a comparatively lower 3.80% annualized return.

HYG

• 1D: 0.14%
• 1M: -0.24%
• YTD: 1.14%
• 6M: 1.72%
• 1Y: 6.36%
• 3Y*: 8.34%
• 5Y*: 3.69%
• 10Y*: 4.88%

NAIL

• 1D: -0.92%
• 1M: -3.69%
• YTD: -23.54%
• 6M: -33.60%
• 1Y: -22.27%
• 3Y*: -13.87%
• 5Y*: -13.16%
• 10Y*: 3.80%

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

HYG vs. NAIL - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HYG iShares iBoxx $ High Yield Corporate Bond ETF	1.14%	8.59%	7.97%	11.54%	-10.98%	3.76%	4.47%	14.09%	-2.02%	6.07%
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares	-23.54%	-40.43%	-22.83%	259.61%	-75.23%	168.20%	-32.08%	184.63%	-73.96%	268.71%

Correlation

The correlation between HYG and NAIL is 0.54, 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	0.54
Correlation (3Y) Calculated over the trailing 3-year period	0.59
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.54
Correlation (All Time) Calculated using the full available price history since Aug 19, 2015	0.53

The correlation between HYG and NAIL has been stable across timeframes, ranging from 0.53 to 0.62 - a consistent structural relationship.

HYG vs. NAIL - Sectors Allocation Comparison

Sectors	HYG	NAIL
Utilities	99.6%	-
Real Estate	0.4%	0.5%
Basic Materials	-	8.6%
Communication Services	-	-
Consumer Cyclical	-	71.8%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	19.1%
Technology	-	-

Return for Risk

HYG vs. NAIL — Risk / Return Rank

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

HYG

HYG Risk / Return Rank: 60
HYG Sharpe Ratio Rank: 54
HYG Sortino Ratio Rank: 58
HYG Omega Ratio Rank: 56
HYG Calmar Ratio Rank: 60
HYG Martin Ratio Rank: 71

NAIL

NAIL Risk / Return Rank: 8
NAIL Sharpe Ratio Rank: 7
NAIL Sortino Ratio Rank: 10
NAIL Omega Ratio Rank: 10
NAIL Calmar Ratio Rank: 6
NAIL Martin Ratio Rank: 7

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. NAIL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL). 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	NAIL	Difference
Sharpe ratio: Return per unit of total volatility	1.67	-0.26	+1.92
Sortino ratio: Return per unit of downside risk	2.49	0.22	+2.28
Omega ratio: Gain probability vs. loss probability	1.32	1.02	+0.29
Calmar ratio: Return relative to maximum drawdown	2.73	-0.33	+3.06
Martin ratio: Return relative to average drawdown	12.02	-0.58	+12.60
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. NAIL - Sharpe Ratio Comparison

The current HYG Sharpe Ratio is 1.67, which is higher than the NAIL Sharpe Ratio of -0.26. The chart below compares the historical Sharpe Ratios of HYG and NAIL, 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	NAIL	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.67	-0.26	+1.92
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.49	-0.15	+0.65
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.59	0.04	+0.55
Sharpe Ratio (All Time) Calculated using the full available price history	0.46	-0.00	+0.46

Drawdowns

HYG vs. NAIL - Drawdown Comparison

The maximum HYG drawdown since its inception was -34.25%, smaller than the maximum NAIL drawdown of -93.75%. Use the drawdown chart below to compare losses from any high point for HYG and NAIL.

Drawdown Indicators

	HYG	NAIL	Difference
Max Drawdown Largest peak-to-trough decline	-34.25%	-93.75%	+59.50%
Max Drawdown (1Y) Largest decline over 1 year	-2.34%	-67.85%	+65.51%
Max Drawdown (3Y) Largest decline over 3 years	-4.56%	-82.09%	+77.53%
Max Drawdown (5Y) Largest decline over 5 years	-15.79%	-84.40%	+68.61%
Max Drawdown (10Y) Largest decline over 10 years	-22.03%	-93.75%	+71.72%
Current Drawdown Current decline from peak	-0.45%	-78.15%	+77.70%
Average Drawdown Average peak-to-trough decline	-3.24%	-43.83%	+40.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.53%	38.74%	-38.21%

Volatility

HYG vs. NAIL - Volatility Comparison

The current volatility for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is 1.23%, while Direxion Daily Homebuilders & Supplies Bull 3X Shares (NAIL) has a volatility of 21.13%. This indicates that HYG experiences smaller price fluctuations and is considered to be less risky than NAIL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HYG	NAIL	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.23%	21.13%	-19.90%
Volatility (6M) Calculated over the trailing 6-month period	3.05%	60.31%	-57.26%
Volatility (1Y) Calculated over the trailing 1-year period	3.84%	87.48%	-83.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.53%	86.98%	-79.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	8.29%	89.20%	-80.91%

HYG vs. NAIL - Expense Ratio Comparison

HYG has a 0.49% expense ratio, which is lower than NAIL's 0.99% expense ratio.

Dividends

HYG vs. NAIL - Dividend Comparison

HYG's dividend yield for the trailing twelve months is around 5.93%, more than NAIL's 1.04% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYG iShares iBoxx $ High Yield Corporate Bond ETF	5.93%	5.71%	6.01%	5.74%	5.30%	4.02%	4.88%	4.99%	5.54%	5.12%	5.27%	5.90%
NAIL Direxion Daily Homebuilders & Supplies Bull 3X Shares	1.04%	1.55%	0.63%	0.22%	0.00%	0.00%	0.01%	0.17%	0.35%	1.25%	0.00%	0.00%

Frequently Asked Questions

Can I hold both HYG and NAIL in my portfolio?

HYG and NAIL have a correlation of 0.54, 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 NAIL?

NAIL has higher volatility (21.13%) compared to HYG (1.23%). In terms of maximum drawdown, HYG dropped -34.25% vs NAIL's -93.75%.

Which ETF is better, HYG or NAIL?

On 10-year performance, HYG leads with 4.88% vs 3.80% for NAIL. On fees, HYG is cheaper at 0.49% per year. On volatility, HYG has been the lower-risk option at 1.23%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HYG or NAIL?

Over the 10-year period, HYG has performed better with a 4.88% return vs 3.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HYG or NAIL?

HYG is cheaper with a 0.49% expense ratio, compared with 0.99% for NAIL.

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

HYG has the higher dividend yield at 5.93%, compared with 1.04% for NAIL.

What is the main difference between HYG and NAIL?

HYG is categorized as High Yield Bonds, while NAIL is Leveraged Equities. HYG tracks Markit iBoxx USD Liquid High Yield Index, while NAIL tracks Dow Jones U.S. Select Home Construction Index (300%). They also come from different issuers: iShares and Direxion. Their fees differ too: 0.49% for HYG and 0.99% for NAIL.

Which has better risk-adjusted returns?

HYG currently has the higher Sharpe Ratio (1.67 vs -0.26), 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.