OCSL vs. HYG

Last updated Jun 4, 2026

OCSL (Oaktree Specialty Lending Corporation) is a stock, while HYG (iShares iBoxx $ High Yield Corporate Bond ETF) is High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. Over the past 10 years, OCSL returned 7.74%/yr vs 4.94%/yr for HYG. At a 0.38 correlation, their price movements are largely independent.

Performance

OCSL vs. HYG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Oaktree Specialty Lending Corporation (OCSL) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, OCSL achieves a -3.83% return, which is significantly lower than HYG's 1.32% return. Over the past 10 years, OCSL has outperformed HYG with an annualized return of 7.74%, while HYG has yielded a comparatively lower 4.94% annualized return.

OCSL

• 1D: -2.96%
• 1M: -8.45%
• YTD: -3.83%
• 6M: -7.79%
• 1Y: -7.64%
• 3Y*: -3.06%
• 5Y*: 0.64%
• 10Y*: 7.74%

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%

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

OCSL vs. HYG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
OCSL Oaktree Specialty Lending Corporation	-3.83%	-6.06%	-15.15%	11.25%	3.74%	44.99%	11.00%	38.74%	-6.31%	-1.09%
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%

Correlation

The correlation between OCSL and HYG is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (10Y) Calculated over the trailing 10-year period	0.35
Correlation (All Time) Calculated using the full available price history since Jun 13, 2008	0.38

Return for Risk

OCSL vs. HYG — Risk / Return Rank

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

OCSL

OCSL Risk / Return Rank: 24
OCSL Sharpe Ratio Rank: 25
OCSL Sortino Ratio Rank: 22
OCSL Omega Ratio Rank: 23
OCSL Calmar Ratio Rank: 27
OCSL Martin Ratio Rank: 24

HYG

HYG Risk / Return Rank: 55
HYG Sharpe Ratio Rank: 49
HYG Sortino Ratio Rank: 52
HYG Omega Ratio Rank: 52
HYG Calmar Ratio Rank: 55
HYG Martin Ratio Rank: 66

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.

OCSL vs. HYG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Oaktree Specialty Lending Corporation (OCSL) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). 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.

	OCSL	HYG	Difference
Sharpe ratio: Return per unit of total volatility	-0.36	1.72	-2.07
Sortino ratio: Return per unit of downside risk	-0.36	2.59	-2.96
Omega ratio: Gain probability vs. loss probability	0.96	1.33	-0.37
Calmar ratio: Return relative to maximum drawdown	-0.39	2.79	-3.18
Martin ratio: Return relative to average drawdown	-0.86	12.34	-13.19
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

OCSL vs. HYG - Sharpe Ratio Comparison

The current OCSL Sharpe Ratio is -0.36, which is lower than the HYG Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of OCSL and HYG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	OCSL	HYG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.36	1.72	-2.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.03	0.50	-0.47
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.29	0.60	-0.31
Sharpe Ratio (All Time) Calculated using the full available price history	0.14	0.46	-0.32

Drawdowns

OCSL vs. HYG - Drawdown Comparison

The maximum OCSL drawdown since its inception was -59.52%, which is greater than HYG's maximum drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for OCSL and HYG.

Drawdown Indicators

	OCSL	HYG	Difference
Max Drawdown Largest peak-to-trough decline	-59.52%	-34.25%	-25.27%
Max Drawdown (1Y) Largest decline over 1 year	-19.77%	-2.34%	-17.43%
Max Drawdown (3Y) Largest decline over 3 years	-34.16%	-4.56%	-29.60%
Max Drawdown (5Y) Largest decline over 5 years	-34.16%	-15.79%	-18.37%
Max Drawdown (10Y) Largest decline over 10 years	-57.32%	-22.03%	-35.29%
Current Drawdown Current decline from peak	-27.33%	-0.28%	-27.05%
Average Drawdown Average peak-to-trough decline	-16.42%	-3.24%	-13.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.92%	0.53%	+8.39%

Volatility

OCSL vs. HYG - Volatility Comparison

Oaktree Specialty Lending Corporation (OCSL) has a higher volatility of 8.33% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.21%. This indicates that OCSL's price experiences larger fluctuations and is considered to be riskier than HYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OCSL	HYG	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.33%	1.21%	+7.12%
Volatility (6M) Calculated over the trailing 6-month period	17.28%	3.01%	+14.27%
Volatility (1Y) Calculated over the trailing 1-year period	21.57%	3.81%	+17.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.87%	7.53%	+12.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.84%	8.29%	+18.55%

Dividends

OCSL vs. HYG - Dividend Comparison

OCSL's dividend yield for the trailing twelve months is around 13.72%, more than HYG's 5.92% 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%
OCSL Oaktree Specialty Lending Corporation	13.72%	13.27%	14.40%	11.12%	11.86%	7.37%	7.27%	6.96%	8.75%	8.38%	13.41%	10.84%

Frequently Asked Questions

Can I hold both OCSL and HYG in my portfolio?

OCSL and HYG have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, OCSL or HYG?

OCSL has higher volatility (8.33%) compared to HYG (1.21%). In terms of maximum drawdown, OCSL dropped -59.52% vs HYG's -34.25%.

Which has better risk-adjusted returns?

HYG currently has the higher Sharpe Ratio (1.72 vs -0.36), 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.