HYI vs. HIO

Last updated Jun 23, 2026

HYI (Western Asset High Yield Opportunity Fund Inc) and HIO (Western Asset High Income Opportunity Fund Inc) are both High Yield Bonds funds from Franklin Templeton. Over the past 10 years, HYI returned 5.15%/yr vs 5.91%/yr for HIO. At a 0.46 correlation, their price movements are largely independent. Both charge a 0.01% expense ratio.

Performance

HYI vs. HIO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Western Asset High Yield Opportunity Fund Inc (HYI) and Western Asset High Income Opportunity Fund Inc (HIO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HYI achieves a -1.17% return, which is significantly lower than HIO's 2.95% return. Over the past 10 years, HYI has underperformed HIO with an annualized return of 5.15%, while HIO has yielded a comparatively higher 5.91% annualized return.

HYI

• 1D: -0.38%
• 1M: 0.19%
• YTD: -1.17%
• 6M: 0.59%
• 1Y: -1.99%
• 3Y*: 6.13%
• 5Y*: 1.65%
• 10Y*: 5.15%

HIO

• 1D: 0.28%
• 1M: 0.28%
• YTD: 2.95%
• 6M: 2.82%
• 1Y: 3.61%
• 3Y*: 9.61%
• 5Y*: 2.74%
• 10Y*: 5.91%

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

HYI vs. HIO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
HYI Western Asset High Yield Opportunity Fund Inc	-1.17%	4.09%	7.58%	6.72%	-13.48%	10.04%	6.78%	27.90%	-6.36%	8.57%
HIO Western Asset High Income Opportunity Fund Inc	2.95%	5.33%	13.58%	8.07%	-17.09%	12.80%	6.07%	24.23%	-7.60%	8.97%

Correlation

The correlation between HYI and HIO is 0.51, 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	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Oct 27, 2010	0.46

The correlation between HYI and HIO has been stable across timeframes, ranging from 0.43 to 0.51 - a consistent structural relationship.

Return for Risk

HYI vs. HIO — Risk / Return Rank

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

HYI

HYI Risk / Return Rank: 2
HYI Sharpe Ratio Rank: 2
HYI Sortino Ratio Rank: 2
HYI Omega Ratio Rank: 1
HYI Calmar Ratio Rank: 2
HYI Martin Ratio Rank: 2

HIO

HIO Risk / Return Rank: 5
HIO Sharpe Ratio Rank: 5
HIO Sortino Ratio Rank: 5
HIO Omega Ratio Rank: 5
HIO Calmar Ratio Rank: 6
HIO Martin Ratio Rank: 5

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.

HYI vs. HIO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Western Asset High Yield Opportunity Fund Inc (HYI) and Western Asset High Income Opportunity Fund Inc (HIO). 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.

	HYI	HIO	Difference
Sharpe ratio: Return per unit of total volatility	-0.29	0.35	-0.64
Sortino ratio: Return per unit of downside risk	-0.35	0.54	-0.89
Omega ratio: Gain probability vs. loss probability	0.96	1.07	-0.11
Calmar ratio: Return relative to maximum drawdown	-0.24	0.54	-0.79
Martin ratio: Return relative to average drawdown	-0.47	1.16	-1.63

HYI vs. HIO - Sharpe Ratio Comparison

The current HYI Sharpe Ratio is -0.29, which is lower than the HIO Sharpe Ratio of 0.35. The chart below compares the historical Sharpe Ratios of HYI and HIO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

HYI vs. HIO - Drawdown Comparison

The maximum HYI drawdown since its inception was -36.06%, smaller than the maximum HIO drawdown of -49.69%. Use the drawdown chart below to compare losses from any high point for HYI and HIO.

Drawdown Indicators

	HYI	HIO	Difference
Max Drawdown Largest peak-to-trough decline	-36.06%	-49.69%	+13.63%
Max Drawdown (1Y) Largest decline over 1 year	-8.19%	-6.70%	-1.49%
Max Drawdown (3Y) Largest decline over 3 years	-8.19%	-13.29%	+5.10%
Max Drawdown (5Y) Largest decline over 5 years	-26.35%	-26.18%	-0.17%
Max Drawdown (10Y) Largest decline over 10 years	-36.06%	-40.57%	+4.51%
Current Drawdown Current decline from peak	-5.66%	-1.89%	-3.77%
Average Drawdown Average peak-to-trough decline	-5.80%	-6.45%	+0.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.25%	3.11%	+1.14%

Volatility

HYI vs. HIO - Volatility Comparison

The current volatility for Western Asset High Yield Opportunity Fund Inc (HYI) is 1.14%, while Western Asset High Income Opportunity Fund Inc (HIO) has a volatility of 2.62%. This indicates that HYI experiences smaller price fluctuations and is considered to be less risky than HIO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HYI	HIO	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.14%	2.62%	-1.48%
Volatility (6M) Calculated over the trailing 6-month period	5.33%	7.89%	-2.56%
Volatility (1Y) Calculated over the trailing 1-year period	6.93%	10.34%	-3.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.27%	12.86%	-1.59%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.94%	15.96%	-3.02%

HYI vs. HIO - Expense Ratio Comparison

Both HYI and HIO have an expense ratio of 0.02%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

HYI vs. HIO - Dividend Comparison

HYI's dividend yield for the trailing twelve months is around 10.80%, less than HIO's 11.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HIO Western Asset High Income Opportunity Fund Inc	11.70%	11.48%	10.84%	9.90%	9.11%	7.02%	7.86%	6.91%	7.31%	7.04%	8.44%	9.08%
HYI Western Asset High Yield Opportunity Fund Inc	10.80%	10.22%	9.64%	9.40%	9.09%	7.19%	7.35%	6.87%	8.10%	7.81%	8.73%	9.36%

Frequently Asked Questions

Can I hold both HYI and HIO in my portfolio?

HYI and HIO have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HYI or HIO?

HIO has higher volatility (2.62%) compared to HYI (1.14%). In terms of maximum drawdown, HYI dropped -36.06% vs HIO's -49.69%.

Which has better risk-adjusted returns?

HIO currently has the higher Sharpe Ratio (0.35 vs -0.29), 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.