HYG vs. VFSTX
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and VFSTX (Vanguard Short-Term Investment-Grade Fund Investor Shares) are both funds - HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index, while VFSTX is a Total Bond Market fund managed by Vanguard. Over the past 10 years, HYG returned 5.04%/yr vs 2.51%/yr for VFSTX. At a 0.12 correlation, their price movements are largely independent. HYG charges 0.49%/yr vs 0.20%/yr for VFSTX.
Performance
HYG vs. VFSTX - Performance Comparison
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Returns By Period
In the year-to-date period, HYG achieves a 1.65% return, which is significantly higher than VFSTX's 0.67% return. Over the past 10 years, HYG has outperformed VFSTX with an annualized return of 5.04%, while VFSTX has yielded a comparatively lower 2.51% annualized return.
HYG
- 1D
- 0.00%
- 1M
- 1.12%
- YTD
- 1.65%
- 6M
- 2.21%
- 1Y
- 6.81%
- 3Y*
- 8.52%
- 5Y*
- 3.75%
- 10Y*
- 5.04%
VFSTX
- 1D
- 0.19%
- 1M
- 0.59%
- YTD
- 0.67%
- 6M
- 1.15%
- 1Y
- 4.59%
- 3Y*
- 5.56%
- 5Y*
- 2.26%
- 10Y*
- 2.51%
HYG vs. VFSTX - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.65% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 0.67% | 6.75% | 4.98% | 6.06% | -5.84% | -0.70% | 5.16% | 5.75% | 0.87% | 2.02% |
Correlation
The correlation between HYG and VFSTX is 0.56, 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 | 0.56 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.53 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.47 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.29 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007 | 0.12 |
Over the past year, HYG and VFSTX have become more correlated (0.56) than their long-term average of 0.12, meaning their price movements have been converging.
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Return for Risk
HYG vs. VFSTX — Risk / Return Rank
HYG
VFSTX
HYG vs. VFSTX - 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 Short-Term Investment-Grade Fund Investor Shares (VFSTX). 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 | VFSTX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.28 | ||
| Sortino ratioReturn per unit of downside risk | -0.95 | ||
| Omega ratioGain probability vs. loss probability | 1.32 | 1.44 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 2.79 | 2.64 | +0.15 |
| Martin ratioReturn relative to average drawdown | 12.25 | 10.21 | +2.03 |
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Drawdowns
HYG vs. VFSTX - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.25%, which is greater than VFSTX's maximum drawdown of -9.35%. Use the drawdown chart below to compare losses from any high point for HYG and VFSTX.
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Drawdown Indicators
| HYG | VFSTX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.25% | -9.35% | -24.90% |
Max Drawdown (1Y)Largest decline over 1 year | -2.34% | -1.71% | -0.63% |
Max Drawdown (3Y)Largest decline over 3 years | -4.56% | -1.71% | -2.85% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | -9.35% | -6.44% |
Max Drawdown (10Y)Largest decline over 10 years | -22.03% | -9.35% | -12.68% |
Current DrawdownCurrent decline from peak | 0.00% | -0.36% | +0.36% |
Average DrawdownAverage peak-to-trough decline | -3.24% | -1.12% | -2.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.53% | 0.44% | +0.09% |
Volatility
HYG vs. VFSTX - Volatility Comparison
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a higher volatility of 1.31% compared to Vanguard Short-Term Investment-Grade Fund Investor Shares (VFSTX) at 0.76%. This indicates that HYG's price experiences larger fluctuations and is considered to be riskier than VFSTX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HYG | VFSTX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.31% | 0.76% | +0.55% |
Volatility (6M)Calculated over the trailing 6-month period | 3.08% | 1.68% | +1.40% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.87% | 2.30% | +1.57% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.53% | 2.98% | +4.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.29% | 2.48% | +5.81% |
HYG vs. VFSTX - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is higher than VFSTX's 0.20% expense ratio.
Dividends
HYG vs. VFSTX - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.90%, more than VFSTX's 4.61% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.90% | 5.71% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% |
VFSTX Vanguard Short-Term Investment-Grade Fund Investor Shares | 4.61% | 4.48% | 4.06% | 3.05% | 1.93% | 1.70% | 2.24% | 2.83% | 2.68% | 2.00% | 2.04% | 1.99% |
Frequently Asked Questions
HYG and VFSTX have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HYG has higher volatility (1.31%) compared to VFSTX (0.76%). In terms of maximum drawdown, HYG dropped -34.25% vs VFSTX's -9.35%.
VFSTX currently has the higher Sharpe Ratio (1.97 vs 1.68), 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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