HYG vs. TLT
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and TLT (iShares 20+ Year Treasury Bond ETF) are both exchange-traded funds - HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index, while TLT is a Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Both are passively managed. Over the past 10 years, HYG returned 4.64%/yr vs -2.33%/yr for TLT. Their -0.06 correlation means they have often moved in opposite directions in the past. HYG charges 0.49%/yr vs 0.15%/yr for TLT.
Performance
HYG vs. TLT - Performance Comparison
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Returns By Period
In the year-to-date period, HYG achieves a 1.81% return, which is significantly higher than TLT's -3.18% return. Over the past 10 years, HYG has outperformed TLT with an annualized return of 4.64%, while TLT has yielded a comparatively lower -2.33% annualized return.
HYG
- 1D
- 0.27%
- 1M
- -0.02%
- 6M
- 1.13%
- YTD
- 1.81%
- 1Y
- 5.12%
- 3Y*
- 8.25%
- 5Y*
- 3.73%
- 10Y*
- 4.64%
- ALL TIME*
- 4.95%
TLT
- 1D
- 0.33%
- 1M
- -3.49%
- 6M
- -2.86%
- YTD
- -3.18%
- 1Y
- -2.12%
- 3Y*
- -1.15%
- 5Y*
- -8.33%
- 10Y*
- -2.33%
- ALL TIME*
- 3.48%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $2.88B | $2.52B | $2.69B | |
| $2.39B | $2.06B | $2.20B |
HYG vs. TLT - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.81% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
TLT iShares 20+ Year Treasury Bond ETF | -3.18% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
Correlation
The correlation between HYG and TLT is 0.46, which is low. Their historical price movements had little consistent relationship.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.46 |
Correlation (3Y) Balances recent behavior with more history. | 0.51 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.42 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.17 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007 | -0.06 |
The correlation between HYG and TLT shifts across timeframes, from -0.06 (all time) to 0.51 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
HYG vs. TLT — Risk / Return Rank
HYG
TLT
HYG vs. TLT - 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 20+ Year Treasury Bond ETF (TLT). 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 | TLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.56 | ||
| Sortino ratioReturn per unit of downside risk | +2.27 | ||
| Omega ratioGain probability vs. loss probability | 1.25 | 0.97 | +0.28 |
| Calmar ratioReturn relative to maximum drawdown | 2.20 | -0.28 | +2.47 |
| Martin ratioReturn relative to average drawdown | 9.47 | -0.59 | +10.06 |
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Drawdowns
HYG vs. TLT - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.25%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for HYG and TLT.
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Drawdown Indicators
| HYG | TLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.25% | -48.35% | +14.10% |
Max Drawdown (1Y)Largest decline over 1 year | -2.34% | -7.74% | +5.40% |
Max Drawdown (3Y)Largest decline over 3 years | -4.56% | -14.79% | +10.23% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | -43.70% | +27.91% |
Max Drawdown (10Y)Largest decline over 10 years | -22.03% | -48.35% | +26.32% |
Current DrawdownCurrent decline from peak | -0.22% | -42.17% | +41.95% |
Average DrawdownAverage peak-to-trough decline | -3.22% | -14.00% | +10.78% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.54% | 3.60% | -3.06% |
Volatility
HYG vs. TLT - Volatility Comparison
The current volatility for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is 0.83%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.51%. This indicates that HYG experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HYG | TLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.83% | 2.51% | -1.68% |
Volatility (6M)Calculated over the trailing 6-month period | 3.17% | 6.84% | -3.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.87% | 9.24% | -5.37% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.53% | 15.74% | -8.21% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.21% | 14.83% | -6.62% |
HYG vs. TLT - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is higher than TLT's 0.15% expense ratio.
Dividends
HYG vs. TLT - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.91%, more than TLT's 4.75% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
TLT iShares 20+ Year Treasury Bond ETF | 4.75% | 4.43% | 4.30% | 3.38% | 2.67% | 1.50% | 1.50% | 2.27% | 2.63% | 2.43% | 2.60% | 2.61% |
Frequently Asked Questions
HYG and TLT have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TLT has higher volatility (2.51%) compared to HYG (0.83%). In terms of maximum drawdown, HYG dropped -34.25% vs TLT's -48.35%.
On 10-year performance, HYG leads with 4.64% vs -2.33% for TLT. On fees, TLT is cheaper at 0.15% per year. On volatility, HYG has been the lower-risk option at 0.83%. 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 4.64% return vs -2.33%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
TLT is cheaper with a 0.15% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.91%, compared with 4.75% for TLT.
HYG is categorized as High Yield Bonds, while TLT is Government Bonds. HYG tracks Markit iBoxx USD Liquid High Yield Index, while TLT tracks ICE U.S. Treasury 20+ Year Bond Index. Their fees differ too: 0.49% for HYG and 0.15% for TLT.
HYG currently has the higher Sharpe Ratio (1.33 vs -0.23), 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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