IBHG vs. FHYS

Last updated Jun 23, 2026

IBHG (iShares iBonds 2027 Term High Yield and Income ETF) and FHYS (Federated Hermes Short Duration High Yield ETF) are both High Yield Bonds funds. IBHG is passively managed, while FHYS is actively managed. Over the past 3 years, IBHG returned 7.63%/yr vs 7.79%/yr for FHYS. A 0.77 correlation means they provide meaningful diversification when combined. IBHG charges 0.35%/yr vs 0.51%/yr for FHYS.

Performance

IBHG vs. FHYS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares iBonds 2027 Term High Yield and Income ETF (IBHG) and Federated Hermes Short Duration High Yield ETF (FHYS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IBHG achieves a 1.17% return, which is significantly lower than FHYS's 1.74% return.

IBHG

• 1D: 0.00%
• 1M: 0.03%
• YTD: 1.17%
• 6M: 1.43%
• 1Y: 4.55%
• 3Y*: 7.63%
• 5Y*: —
• 10Y*: —

FHYS

• 1D: -0.03%
• 1M: 0.43%
• YTD: 1.74%
• 6M: 2.02%
• 1Y: 6.13%
• 3Y*: 7.79%
• 5Y*: —
• 10Y*: —

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

IBHG vs. FHYS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
IBHG iShares iBonds 2027 Term High Yield and Income ETF	1.17%	6.90%	7.42%	11.27%	-8.88%	0.49%
FHYS Federated Hermes Short Duration High Yield ETF	1.74%	7.72%	7.23%	10.88%	-7.31%	0.73%

Correlation

The correlation between IBHG and FHYS is 0.65, 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	0.65
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (All Time) Calculated using the full available price history since Dec 17, 2021	0.77

The correlation between IBHG and FHYS shifts across timeframes, from 0.65 (1 year) to 0.77 (all time), reflecting how their relationship changes across market environments.

Return for Risk

IBHG vs. FHYS — Risk / Return Rank

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

IBHG

IBHG Risk / Return Rank: 82
IBHG Sharpe Ratio Rank: 70
IBHG Sortino Ratio Rank: 80
IBHG Omega Ratio Rank: 73
IBHG Calmar Ratio Rank: 93
IBHG Martin Ratio Rank: 93

FHYS

FHYS Risk / Return Rank: 82
FHYS Sharpe Ratio Rank: 75
FHYS Sortino Ratio Rank: 84
FHYS Omega Ratio Rank: 84
FHYS Calmar Ratio Rank: 75
FHYS Martin Ratio Rank: 89

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.

IBHG vs. FHYS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares iBonds 2027 Term High Yield and Income ETF (IBHG) and Federated Hermes Short Duration High Yield ETF (FHYS). 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.

	IBHG	FHYS	Difference
Sharpe ratio: Return per unit of total volatility	2.19	2.29	-0.11
Sortino ratio: Return per unit of downside risk	3.40	3.59	-0.19
Omega ratio: Gain probability vs. loss probability	1.42	1.49	-0.07
Calmar ratio: Return relative to maximum drawdown	6.29	3.70	+2.59
Martin ratio: Return relative to average drawdown	22.89	19.00	+3.89

IBHG vs. FHYS - Sharpe Ratio Comparison

The current IBHG Sharpe Ratio is 2.19, which is comparable to the FHYS Sharpe Ratio of 2.29. The chart below compares the historical Sharpe Ratios of IBHG and FHYS, 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

IBHG vs. FHYS - Drawdown Comparison

The maximum IBHG drawdown since its inception was -13.85%, which is greater than FHYS's maximum drawdown of -11.62%. Use the drawdown chart below to compare losses from any high point for IBHG and FHYS.

Drawdown Indicators

	IBHG	FHYS	Difference
Max Drawdown Largest peak-to-trough decline	-13.85%	-11.62%	-2.23%
Max Drawdown (1Y) Largest decline over 1 year	-0.73%	-1.66%	+0.93%
Max Drawdown (3Y) Largest decline over 3 years	-3.39%	-3.16%	-0.23%
Current Drawdown Current decline from peak	-0.02%	-0.03%	+0.01%
Average Drawdown Average peak-to-trough decline	-2.64%	-2.26%	-0.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.20%	0.32%	-0.12%

Volatility

IBHG vs. FHYS - Volatility Comparison

The current volatility for iShares iBonds 2027 Term High Yield and Income ETF (IBHG) is 0.44%, while Federated Hermes Short Duration High Yield ETF (FHYS) has a volatility of 0.63%. This indicates that IBHG experiences smaller price fluctuations and is considered to be less risky than FHYS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IBHG	FHYS	Difference
Volatility (1M) Calculated over the trailing 1-month period	0.44%	0.63%	-0.19%
Volatility (6M) Calculated over the trailing 6-month period	1.52%	2.21%	-0.69%
Volatility (1Y) Calculated over the trailing 1-year period	2.09%	2.69%	-0.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.33%	4.93%	+1.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.33%	4.93%	+1.40%

IBHG vs. FHYS - Expense Ratio Comparison

IBHG has a 0.35% expense ratio, which is lower than FHYS's 0.51% expense ratio.

Dividends

IBHG vs. FHYS - Dividend Comparison

IBHG's dividend yield for the trailing twelve months is around 6.07%, more than FHYS's 5.75% yield.

Position	TTM	2025	2024	2023	2022	2021
FHYS Federated Hermes Short Duration High Yield ETF	5.75%	5.96%	6.42%	6.76%	6.25%	0.16%
IBHG iShares iBonds 2027 Term High Yield and Income ETF	6.07%	6.33%	7.02%	6.66%	5.62%	2.13%

Frequently Asked Questions

Can I hold both IBHG and FHYS in my portfolio?

IBHG and FHYS have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IBHG or FHYS?

FHYS has higher volatility (0.63%) compared to IBHG (0.44%). In terms of maximum drawdown, IBHG dropped -13.85% vs FHYS's -11.62%.

Which ETF is better, IBHG or FHYS?

On 3-year performance, FHYS leads with 7.79% vs 7.63% for IBHG. On fees, IBHG is cheaper at 0.35% per year. On volatility, IBHG has been the lower-risk option at 0.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IBHG or FHYS?

Over the 3-year period, FHYS has performed better with a 7.79% return vs 7.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IBHG or FHYS?

IBHG is cheaper with a 0.35% expense ratio, compared with 0.51% for FHYS.

Which ETF pays a higher dividend yield, IBHG or FHYS?

IBHG has the higher dividend yield at 6.07%, compared with 5.75% for FHYS.

What is the main difference between IBHG and FHYS?

They also come from different issuers: iShares and Federated. Their fees differ too: 0.35% for IBHG and 0.51% for FHYS.

Which has better risk-adjusted returns?

FHYS currently has the higher Sharpe Ratio (2.29 vs 2.19), 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.