HYG vs. VCLT
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and VCLT (Vanguard Long-Term Corporate Bond ETF) are both exchange-traded funds - HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index, while VCLT is a Corporate Bonds fund tracking the Barclays U.S. 10+ Year Corporate Index. Both are passively managed. Over the past 10 years, HYG returned 4.94%/yr vs 2.31%/yr for VCLT. At a 0.23 correlation, their price movements are largely independent. HYG charges 0.49%/yr vs 0.04%/yr for VCLT.
Performance
HYG vs. VCLT - 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 VCLT's 0.99% return. Over the past 10 years, HYG has outperformed VCLT with an annualized return of 4.94%, while VCLT has yielded a comparatively lower 2.31% 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%
VCLT
- 1D
- -0.35%
- 1M
- 1.49%
- YTD
- 0.99%
- 6M
- -0.04%
- 1Y
- 7.69%
- 3Y*
- 4.34%
- 5Y*
- -1.78%
- 10Y*
- 2.31%
HYG vs. VCLT - 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% |
VCLT Vanguard Long-Term Corporate Bond ETF | 0.99% | 7.18% | -1.90% | 11.17% | -25.50% | -1.73% | 13.27% | 23.89% | -7.04% | 11.70% |
Correlation
The correlation between HYG and VCLT is 0.64, 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 | 0.64 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.61 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.44 |
Correlation (All Time) Calculated using the full available price history since Nov 24, 2009 | 0.23 |
Over the past year, HYG and VCLT have become more correlated (0.64) than their long-term average of 0.23, meaning their price movements have been converging.
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Return for Risk
HYG vs. VCLT — Risk / Return Rank
HYG
VCLT
HYG vs. VCLT - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) and Vanguard Long-Term Corporate Bond ETF (VCLT). 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 | VCLT | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.74 | ||
| Sortino ratioReturn per unit of downside risk | +1.17 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.17 | +0.16 |
| Calmar ratioReturn relative to maximum drawdown | 2.79 | 1.47 | +1.32 |
| Martin ratioReturn relative to average drawdown | 12.34 | 3.62 | +8.71 |
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 | VCLT | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.72 | 0.97 | +0.74 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.50 | -0.14 | +0.64 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.60 | 0.18 | +0.42 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 0.39 | +0.06 |
Drawdowns
HYG vs. VCLT - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.25%, roughly equal to the maximum VCLT drawdown of -34.31%. Use the drawdown chart below to compare losses from any high point for HYG and VCLT.
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Drawdown Indicators
| HYG | VCLT | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.25% | -34.31% | +0.06% |
Max Drawdown (1Y)Largest decline over 1 year | -2.34% | -5.25% | +2.91% |
Max Drawdown (3Y)Largest decline over 3 years | -4.56% | -13.03% | +8.47% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | -34.31% | +18.52% |
Max Drawdown (10Y)Largest decline over 10 years | -22.03% | -34.31% | +12.28% |
Current DrawdownCurrent decline from peak | -0.28% | -14.36% | +14.08% |
Average DrawdownAverage peak-to-trough decline | -3.24% | -8.16% | +4.92% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.53% | 2.13% | -1.60% |
Volatility
HYG vs. VCLT - Volatility Comparison
The current volatility for iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is 1.21%, while Vanguard Long-Term Corporate Bond ETF (VCLT) has a volatility of 2.31%. This indicates that HYG experiences smaller price fluctuations and is considered to be less risky than VCLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HYG | VCLT | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.21% | 2.31% | -1.10% |
Volatility (6M)Calculated over the trailing 6-month period | 3.01% | 5.75% | -2.74% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.81% | 7.92% | -4.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.53% | 12.78% | -5.25% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.29% | 12.84% | -4.55% |
HYG vs. VCLT - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is higher than VCLT's 0.04% expense ratio.
Dividends
HYG vs. VCLT - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.92%, more than VCLT's 5.55% 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% |
VCLT Vanguard Long-Term Corporate Bond ETF | 5.55% | 5.51% | 5.19% | 4.67% | 4.44% | 3.07% | 3.16% | 3.81% | 4.55% | 4.01% | 4.33% | 4.68% |
Frequently Asked Questions
HYG and VCLT have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VCLT has higher volatility (2.31%) compared to HYG (1.21%). In terms of maximum drawdown, HYG dropped -34.25% vs VCLT's -34.31%.
On 10-year performance, HYG leads with 4.94% vs 2.31% for VCLT. On fees, VCLT is cheaper at 0.04% 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.
Over the 10-year period, HYG has performed better with a 4.94% return vs 2.31%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VCLT is cheaper with a 0.04% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.92%, compared with 5.55% for VCLT.
HYG is categorized as High Yield Bonds, while VCLT is Corporate Bonds. HYG tracks Markit iBoxx USD Liquid High Yield Index, while VCLT tracks Barclays U.S. 10+ Year Corporate Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.49% for HYG and 0.04% for VCLT.
HYG currently has the higher Sharpe Ratio (1.72 vs 0.97), 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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