HYGI vs. FALN

Last updated Jun 23, 2026

HYGI (iShares Inflation Hedged High Yield Bond ETF) and FALN (iShares Fallen Angels USD Bond ETF) are both exchange-traded funds - HYGI is a Inflation-Protected Bonds fund tracking the BlackRock Inflation Hedged High Yield Bond Index - Benchmark TR Gross, while FALN is a High Yield Bonds fund tracking the Bloomberg US High Yield Fallen Angel 3% Capped Index. Both are passively managed. A 0.78 correlation means they provide meaningful diversification when combined. HYGI charges 0.52%/yr vs 0.25%/yr for FALN.

Performance

HYGI vs. FALN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Inflation Hedged High Yield Bond ETF (HYGI) and iShares Fallen Angels USD Bond ETF (FALN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

HYGI

• 1D: —
• 1M: —
• YTD: —
• 6M: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

FALN

• 1D: -0.11%
• 1M: 1.07%
• YTD: 2.24%
• 6M: 2.46%
• 1Y: 7.88%
• 3Y*: 9.39%
• 5Y*: 3.76%
• 10Y*: 6.60%

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

HYGI vs. FALN - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
HYGI iShares Inflation Hedged High Yield Bond ETF	0.00%	6.20%	9.16%	11.71%	0.65%
FALN iShares Fallen Angels USD Bond ETF	2.24%	8.92%	7.68%	13.47%	1.50%

Correlation

The correlation between HYGI and FALN is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (All Time) Calculated using the full available price history since Jun 24, 2022	0.78

Over the past year, the correlation between HYGI and FALN has dropped to 0.23 - well below their long-term average of 0.78, suggesting their price drivers have been diverging.

Return for Risk

HYGI vs. FALN — Risk / Return Rank

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

HYGI

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

FALN

FALN Risk / Return Rank: 50
FALN Sharpe Ratio Rank: 52
FALN Sortino Ratio Rank: 53
FALN Omega Ratio Rank: 55
FALN Calmar Ratio Rank: 41
FALN Martin Ratio Rank: 50

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.

HYGI vs. FALN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Inflation Hedged High Yield Bond ETF (HYGI) and iShares Fallen Angels USD Bond ETF (FALN). 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.

	HYGI	FALN	Difference
Sharpe ratio: Return per unit of total volatility	—	1.72	—
Sortino ratio: Return per unit of downside risk	—	2.50	—
Omega ratio: Gain probability vs. loss probability	—	1.33	—
Calmar ratio: Return relative to maximum drawdown	—	2.00	—
Martin ratio: Return relative to average drawdown	—	8.32	—

Drawdowns

Drawdown Indicators

	HYGI	FALN	Difference
Max Drawdown Largest peak-to-trough decline	—	-29.22%	—
Max Drawdown (1Y) Largest decline over 1 year	—	-3.96%	—
Max Drawdown (3Y) Largest decline over 3 years	—	-5.92%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-18.78%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-29.22%	—
Current Drawdown Current decline from peak	—	-0.11%	—
Average Drawdown Average peak-to-trough decline	—	-3.31%	—
Ulcer Index Depth and duration of drawdowns from previous peaks	—	0.95%	—

Volatility

Volatility by Period

	HYGI	FALN	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	1.18%	—
Volatility (6M) Calculated over the trailing 6-month period	—	3.73%	—
Volatility (1Y) Calculated over the trailing 1-year period	—	4.60%	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	—	7.33%	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	—	8.94%	—

HYGI vs. FALN - Expense Ratio Comparison

HYGI has a 0.52% expense ratio, which is higher than FALN's 0.25% expense ratio.

Dividends

HYGI vs. FALN - Dividend Comparison

HYGI has not paid dividends to shareholders, while FALN's dividend yield for the trailing twelve months is around 6.42%.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
FALN iShares Fallen Angels USD Bond ETF	6.42%	6.31%	6.24%	5.37%	5.08%	3.40%	5.14%	5.35%	5.97%	6.98%	3.55%
HYGI iShares Inflation Hedged High Yield Bond ETF	0.97%	3.41%	6.08%	6.22%	3.19%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both HYGI and FALN in my portfolio?

HYGI and FALN have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, HYGI or FALN?

On fees, FALN is cheaper at 0.25% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, HYGI or FALN?

FALN is cheaper with a 0.25% expense ratio, compared with 0.52% for HYGI.

Which ETF pays a higher dividend yield, HYGI or FALN?

FALN has the higher dividend yield at 6.42%, compared with 0.97% for HYGI.

What is the main difference between HYGI and FALN?

HYGI is categorized as Inflation-Protected Bonds, while FALN is High Yield Bonds. HYGI tracks BlackRock Inflation Hedged High Yield Bond Index - Benchmark TR Gross, while FALN tracks Bloomberg US High Yield Fallen Angel 3% Capped Index. Their fees differ too: 0.52% for HYGI and 0.25% for FALN.