PFF vs. HYG
PFF (iShares Preferred and Income Securities ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - PFF is a Preferred Stock/Convertible Bonds fund tracking the ICE Exchange-Listed Preferred & Hybrid Securities Index, while HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 10 years, PFF returned 3.35%/yr vs 5.04%/yr for HYG. A 0.56 correlation means they provide meaningful diversification when combined. PFF charges 0.46%/yr vs 0.49%/yr for HYG.
Performance
PFF vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, PFF achieves a 2.40% return, which is significantly higher than HYG's 1.65% return. Over the past 10 years, PFF has underperformed HYG with an annualized return of 3.35%, while HYG has yielded a comparatively higher 5.04% annualized return.
PFF
- 1D
- 0.16%
- 1M
- -1.24%
- YTD
- 2.40%
- 6M
- 2.42%
- 1Y
- 8.83%
- 3Y*
- 6.77%
- 5Y*
- 1.32%
- 10Y*
- 3.35%
HYG
- 1D
- 0.00%
- 1M
- 0.63%
- YTD
- 1.65%
- 6M
- 2.21%
- 1Y
- 6.81%
- 3Y*
- 8.52%
- 5Y*
- 3.75%
- 10Y*
- 5.04%
PFF vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PFF iShares Preferred and Income Securities ETF | 2.40% | 4.87% | 7.24% | 9.22% | -18.19% | 7.15% | 7.89% | 15.93% | -4.64% | 8.10% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.65% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
Correlation
The correlation between PFF and HYG is 0.75, 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 | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.74 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.74 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.66 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2007 | 0.56 |
The correlation between PFF and HYG shifts across timeframes, from 0.56 (all time) to 0.75 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
PFF vs. HYG — Risk / Return Rank
PFF
HYG
PFF vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Preferred and Income Securities ETF (PFF) 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.
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.
| PFF | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.49 | ||
| Sortino ratioReturn per unit of downside risk | -0.81 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.32 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 1.56 | 2.79 | -1.23 |
| Martin ratioReturn relative to average drawdown | 4.75 | 12.25 | -7.50 |
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Drawdowns
PFF vs. HYG - Drawdown Comparison
The maximum PFF drawdown since its inception was -65.55%, which is greater than HYG's maximum drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for PFF and HYG.
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Drawdown Indicators
| PFF | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -65.55% | -34.25% | -31.30% |
Max Drawdown (1Y)Largest decline over 1 year | -5.28% | -2.34% | -2.94% |
Max Drawdown (3Y)Largest decline over 3 years | -10.63% | -4.56% | -6.07% |
Max Drawdown (5Y)Largest decline over 5 years | -21.05% | -15.79% | -5.26% |
Max Drawdown (10Y)Largest decline over 10 years | -34.10% | -22.03% | -12.07% |
Current DrawdownCurrent decline from peak | -1.62% | 0.00% | -1.62% |
Average DrawdownAverage peak-to-trough decline | -5.76% | -3.24% | -2.52% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.73% | 0.53% | +1.20% |
Volatility
PFF vs. HYG - Volatility Comparison
iShares Preferred and Income Securities ETF (PFF) has a higher volatility of 2.29% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.31%. This indicates that PFF'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.
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Volatility by Period
| PFF | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.29% | 1.31% | +0.98% |
Volatility (6M)Calculated over the trailing 6-month period | 5.21% | 3.08% | +2.13% |
Volatility (1Y)Calculated over the trailing 1-year period | 6.88% | 3.87% | +3.01% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 10.32% | 7.53% | +2.79% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 12.67% | 8.29% | +4.38% |
PFF vs. HYG - Expense Ratio Comparison
PFF has a 0.46% expense ratio, which is lower than HYG's 0.49% expense ratio.
Dividends
PFF vs. HYG - Dividend Comparison
PFF's dividend yield for the trailing twelve months is around 5.50%, less than HYG's 5.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.90% | 5.71% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% |
PFF iShares Preferred and Income Securities ETF | 5.50% | 6.30% | 6.32% | 6.63% | 6.01% | 4.45% | 4.79% | 5.31% | 6.32% | 5.59% | 5.85% | 5.76% |
Frequently Asked Questions
PFF and HYG have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
PFF has higher volatility (2.29%) compared to HYG (1.31%). In terms of maximum drawdown, PFF dropped -65.55% vs HYG's -34.25%.
On 10-year performance, HYG leads with 5.04% vs 3.35% for PFF. On fees, PFF is cheaper at 0.46% per year. On volatility, HYG has been the lower-risk option at 1.31%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, HYG has performed better with a 5.04% return vs 3.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PFF is cheaper with a 0.46% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.90%, compared with 5.50% for PFF.
PFF is categorized as Preferred Stock/Convertible Bonds, while HYG is High Yield Bonds. PFF tracks ICE Exchange-Listed Preferred & Hybrid Securities Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. Their fees differ too: 0.46% for PFF and 0.49% for HYG.
HYG currently has the higher Sharpe Ratio (1.68 vs 1.19), 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.
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