NLY vs. USHY
NLY (Annaly Capital Management, Inc.) is a stock, while USHY (iShares Broad USD High Yield Corporate Bond ETF) is High Yield Bonds fund tracking the ICE BofA US High Yield Constrained Index. Over the past 5 years, NLY returned 1.37%/yr vs 4.16%/yr for USHY. At a 0.48 correlation, their price movements are largely independent.
Performance
NLY vs. USHY - Performance Comparison
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Returns By Period
In the year-to-date period, NLY achieves a -3.07% return, which is significantly lower than USHY's 1.29% return.
NLY
- 1D
- -1.23%
- 1M
- -7.30%
- YTD
- -3.07%
- 6M
- -1.18%
- 1Y
- 25.88%
- 3Y*
- 16.16%
- 5Y*
- 1.37%
- 10Y*
- 5.29%
USHY
- 1D
- 0.08%
- 1M
- -0.14%
- YTD
- 1.29%
- 6M
- 1.85%
- 1Y
- 6.84%
- 3Y*
- 8.79%
- 5Y*
- 4.16%
- 10Y*
- —
NLY vs. USHY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
NLY Annaly Capital Management, Inc. | -3.07% | 40.00% | 8.07% | 4.94% | -21.41% | 2.48% | 2.38% | 7.22% | -7.22% | 2.93% |
USHY iShares Broad USD High Yield Corporate Bond ETF | 1.29% | 8.81% | 8.45% | 12.73% | -11.18% | 5.02% | 6.17% | 14.24% | -2.41% | 0.16% |
Correlation
The correlation between NLY and USHY is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.47 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.58 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.59 |
Correlation (All Time) Calculated using the full available price history since Oct 26, 2017 | 0.48 |
The correlation between NLY and USHY shifts across timeframes, from 0.47 (1 year) to 0.59 (5 years), reflecting how their relationship changes across market environments.
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Return for Risk
NLY vs. USHY — Risk / Return Rank
NLY
USHY
NLY vs. USHY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Annaly Capital Management, Inc. (NLY) and iShares Broad USD High Yield Corporate Bond ETF (USHY). 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.
| NLY | USHY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.47 | ||
| Sortino ratioReturn per unit of downside risk | -0.84 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.36 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 1.75 | 2.83 | -1.08 |
| Martin ratioReturn relative to average drawdown | 5.22 | 12.68 | -7.46 |
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
| NLY | USHY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.40 | 1.88 | -0.47 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.05 | 0.57 | -0.51 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.19 | — | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.30 | 0.58 | -0.27 |
Drawdowns
NLY vs. USHY - Drawdown Comparison
The maximum NLY drawdown since its inception was -60.09%, which is greater than USHY's maximum drawdown of -22.44%. Use the drawdown chart below to compare losses from any high point for NLY and USHY.
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Drawdown Indicators
| NLY | USHY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -60.09% | -22.44% | -37.65% |
Max Drawdown (1Y)Largest decline over 1 year | -14.88% | -2.43% | -12.45% |
Max Drawdown (3Y)Largest decline over 3 years | -26.70% | -4.66% | -22.04% |
Max Drawdown (5Y)Largest decline over 5 years | -51.97% | -15.56% | -36.41% |
Max Drawdown (10Y)Largest decline over 10 years | -60.09% | — | — |
Current DrawdownCurrent decline from peak | -11.17% | -0.41% | -10.76% |
Average DrawdownAverage peak-to-trough decline | -13.75% | -2.66% | -11.09% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.97% | 0.54% | +4.43% |
Volatility
NLY vs. USHY - Volatility Comparison
Annaly Capital Management, Inc. (NLY) has a higher volatility of 3.97% compared to iShares Broad USD High Yield Corporate Bond ETF (USHY) at 1.13%. This indicates that NLY's price experiences larger fluctuations and is considered to be riskier than USHY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| NLY | USHY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.97% | 1.13% | +2.84% |
Volatility (6M)Calculated over the trailing 6-month period | 14.66% | 2.95% | +11.71% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.56% | 3.67% | +14.89% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 25.54% | 7.34% | +18.20% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 28.12% | 8.25% | +19.87% |
Dividends
NLY vs. USHY - Dividend Comparison
NLY's dividend yield for the trailing twelve months is around 13.36%, more than USHY's 6.93% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
NLY Annaly Capital Management, Inc. | 13.36% | 12.52% | 14.21% | 13.42% | 16.70% | 11.25% | 10.77% | 11.15% | 12.22% | 10.09% | 12.04% | 12.79% |
USHY iShares Broad USD High Yield Corporate Bond ETF | 6.93% | 6.79% | 6.89% | 6.63% | 6.08% | 5.07% | 5.30% | 5.92% | 6.30% | 0.73% | 0.00% | 0.00% |
Frequently Asked Questions
NLY and USHY have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NLY has higher volatility (3.97%) compared to USHY (1.13%). In terms of maximum drawdown, NLY dropped -60.09% vs USHY's -22.44%.
USHY currently has the higher Sharpe Ratio (1.88 vs 1.40), 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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