HYG vs. VTIP
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and VTIP (Vanguard Short-Term Inflation-Protected Securities ETF) are both exchange-traded funds - HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index, while VTIP is a Inflation-Protected Bonds fund tracking the Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. Both are passively managed. Over the past 10 years, HYG returned 4.94%/yr vs 3.14%/yr for VTIP. At a 0.24 correlation, their price movements are largely independent. HYG charges 0.49%/yr vs 0.03%/yr for VTIP.
Performance
HYG vs. VTIP - Performance Comparison
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Returns By Period
In the year-to-date period, HYG achieves a 1.32% return, which is significantly lower than VTIP's 2.05% return. Over the past 10 years, HYG has outperformed VTIP with an annualized return of 4.94%, while VTIP has yielded a comparatively lower 3.14% 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%
VTIP
- 1D
- 0.00%
- 1M
- 0.04%
- YTD
- 2.05%
- 6M
- 2.03%
- 1Y
- 4.70%
- 3Y*
- 5.26%
- 5Y*
- 3.37%
- 10Y*
- 3.14%
HYG vs. VTIP - 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% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 2.05% | 6.07% | 4.74% | 4.62% | -2.94% | 5.36% | 4.95% | 4.86% | 0.56% | 0.82% |
Correlation
The correlation between HYG and VTIP is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.40 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.37 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.26 |
Correlation (All Time) Calculated using the full available price history since Oct 17, 2012 | 0.24 |
The correlation between HYG and VTIP shifts across timeframes, from 0.22 (1 year) to 0.40 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
HYG vs. VTIP — Risk / Return Rank
HYG
VTIP
HYG vs. VTIP - 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 Inflation-Protected Securities ETF (VTIP). 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 | VTIP | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.43 | ||
| Sortino ratioReturn per unit of downside risk | -2.77 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.67 | -0.34 |
| Calmar ratioReturn relative to maximum drawdown | 2.79 | 6.75 | -3.95 |
| Martin ratioReturn relative to average drawdown | 12.34 | 26.06 | -13.73 |
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 | VTIP | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.72 | 3.15 | -1.43 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.50 | 1.22 | -0.72 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.60 | 1.15 | -0.55 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.46 | 0.89 | -0.44 |
Drawdowns
HYG vs. VTIP - Drawdown Comparison
The maximum HYG drawdown since its inception was -34.25%, which is greater than VTIP's maximum drawdown of -6.27%. Use the drawdown chart below to compare losses from any high point for HYG and VTIP.
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Drawdown Indicators
| HYG | VTIP | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -34.25% | -6.27% | -27.98% |
Max Drawdown (1Y)Largest decline over 1 year | -2.34% | -0.70% | -1.64% |
Max Drawdown (3Y)Largest decline over 3 years | -4.56% | -0.98% | -3.58% |
Max Drawdown (5Y)Largest decline over 5 years | -15.79% | -5.50% | -10.29% |
Max Drawdown (10Y)Largest decline over 10 years | -22.03% | -6.27% | -15.76% |
Current DrawdownCurrent decline from peak | -0.28% | -0.02% | -0.26% |
Average DrawdownAverage peak-to-trough decline | -3.24% | -1.04% | -2.20% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.53% | 0.18% | +0.35% |
Volatility
HYG vs. VTIP - Volatility Comparison
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a higher volatility of 1.21% compared to Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) at 0.43%. This indicates that HYG's price experiences larger fluctuations and is considered to be riskier than VTIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HYG | VTIP | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.21% | 0.43% | +0.78% |
Volatility (6M)Calculated over the trailing 6-month period | 3.01% | 1.02% | +1.99% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.81% | 1.50% | +2.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.53% | 2.77% | +4.76% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.29% | 2.74% | +5.55% |
HYG vs. VTIP - Expense Ratio Comparison
HYG has a 0.49% expense ratio, which is higher than VTIP's 0.03% expense ratio.
Dividends
HYG vs. VTIP - Dividend Comparison
HYG's dividend yield for the trailing twelve months is around 5.92%, more than VTIP's 3.58% 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% |
VTIP Vanguard Short-Term Inflation-Protected Securities ETF | 3.58% | 3.81% | 2.70% | 2.86% | 6.84% | 4.68% | 1.20% | 1.95% | 2.45% | 1.52% | 0.76% | 0.00% |
Frequently Asked Questions
HYG and VTIP have a correlation of 0.22, 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 VTIP (0.43%). In terms of maximum drawdown, HYG dropped -34.25% vs VTIP's -6.27%.
On 10-year performance, HYG leads with 4.94% vs 3.14% for VTIP. On fees, VTIP is cheaper at 0.03% per year. On volatility, VTIP has been the lower-risk option at 0.43%. 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 3.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VTIP is cheaper with a 0.03% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.92%, compared with 3.58% for VTIP.
HYG is categorized as High Yield Bonds, while VTIP is Inflation-Protected Bonds. HYG tracks Markit iBoxx USD Liquid High Yield Index, while VTIP tracks Bloomberg U.S. Treasury Inflation-Protected Securities (TIPS) 0-5 Year Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.49% for HYG and 0.03% for VTIP.
VTIP currently has the higher Sharpe Ratio (3.15 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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