PHYL vs. HYG

Last updated Jun 5, 2026

PHYL (PGIM Active High Yield Bond ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both High Yield Bonds funds. PHYL is actively managed, while HYG is passively managed. Over the past 5 years, PHYL returned 4.04%/yr vs 3.81%/yr for HYG. Their correlation of 0.82 suggests significant overlap in exposure. PHYL charges 0.53%/yr vs 0.49%/yr for HYG.

Performance

PHYL vs. HYG - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with PHYL having a 1.53% return and HYG slightly lower at 1.51%.

PHYL

• 1D: 0.17%
• 1M: 0.33%
• YTD: 1.53%
• 6M: 2.10%
• 1Y: 7.43%
• 3Y*: 9.20%
• 5Y*: 4.04%
• 10Y*: —

HYG

• 1D: 0.19%
• 1M: 0.40%
• YTD: 1.51%
• 6M: 1.84%
• 1Y: 6.51%
• 3Y*: 8.57%
• 5Y*: 3.81%
• 10Y*: 4.91%

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

PHYL vs. HYG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
PHYL PGIM Active High Yield Bond ETF	1.53%	9.65%	8.45%	11.91%	-11.80%	6.20%	6.31%	16.77%	-4.15%
HYG iShares iBoxx $ High Yield Corporate Bond ETF	1.51%	8.59%	7.97%	11.54%	-10.98%	3.76%	4.47%	14.09%	-4.34%

Correlation

The correlation between PHYL and HYG is 0.90, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Sep 28, 2018	0.82

The correlation between PHYL and HYG shifts across timeframes, from 0.82 (all time) to 0.93 (3 years), reflecting how their relationship changes across market environments.

PHYL vs. HYG - Sectors Allocation Comparison

Sectors	PHYL	HYG
Energy	59.0%	-
Communication Services	41.1%	-
Basic Materials	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	0.4%
Technology	-	-
Utilities	-	99.6%

Return for Risk

PHYL vs. HYG — Risk / Return Rank

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

PHYL

PHYL Risk / Return Rank: 71
PHYL Sharpe Ratio Rank: 72
PHYL Sortino Ratio Rank: 77
PHYL Omega Ratio Rank: 79
PHYL Calmar Ratio Rank: 57
PHYL Martin Ratio Rank: 69

HYG

HYG Risk / Return Rank: 57
HYG Sharpe Ratio Rank: 51
HYG Sortino Ratio Rank: 55
HYG Omega Ratio Rank: 54
HYG Calmar Ratio Rank: 58
HYG Martin Ratio Rank: 68

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.

PHYL vs. HYG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PGIM Active High Yield Bond ETF (PHYL) 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.

	PHYL	HYG	Difference
Sharpe ratio: Return per unit of total volatility	2.30	1.72	+0.58
Sortino ratio: Return per unit of downside risk	3.40	2.59	+0.81
Omega ratio: Gain probability vs. loss probability	1.47	1.33	+0.14
Calmar ratio: Return relative to maximum drawdown	2.79	2.79	-0.01
Martin ratio: Return relative to average drawdown	12.75	12.34	+0.41
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

PHYL vs. HYG - Sharpe Ratio Comparison

The current PHYL Sharpe Ratio is 2.30, which is higher than the HYG Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of PHYL 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

	PHYL	HYG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.30	1.72	+0.58
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.51	+0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.59	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.72	0.46	+0.26

Drawdowns

PHYL vs. HYG - Drawdown Comparison

The maximum PHYL drawdown since its inception was -22.07%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for PHYL and HYG.

Drawdown Indicators

	PHYL	HYG	Difference
Max Drawdown Largest peak-to-trough decline	-22.07%	-34.25%	+12.18%
Max Drawdown (1Y) Largest decline over 1 year	-2.68%	-2.34%	-0.34%
Max Drawdown (3Y) Largest decline over 3 years	-4.53%	-4.56%	+0.03%
Max Drawdown (5Y) Largest decline over 5 years	-16.11%	-15.79%	-0.32%
Max Drawdown (10Y) Largest decline over 10 years	—	-22.03%	—
Current Drawdown Current decline from peak	-0.13%	-0.09%	-0.04%
Average Drawdown Average peak-to-trough decline	-3.06%	-3.24%	+0.18%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.58%	0.53%	+0.05%

Volatility

PHYL vs. HYG - Volatility Comparison

The current volatility for PGIM Active High Yield Bond ETF (PHYL) is 1.09%, while iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a volatility of 1.21%. This indicates that PHYL experiences smaller price fluctuations and is considered to be less risky than HYG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	PHYL	HYG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.09%	1.21%	-0.12%
Volatility (6M) Calculated over the trailing 6-month period	2.59%	3.01%	-0.42%
Volatility (1Y) Calculated over the trailing 1-year period	3.25%	3.81%	-0.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	5.68%	7.53%	-1.85%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.66%	8.29%	-0.63%

PHYL vs. HYG - Expense Ratio Comparison

PHYL has a 0.53% expense ratio, which is higher than HYG's 0.49% expense ratio.

Dividends

PHYL vs. HYG - Dividend Comparison

PHYL's dividend yield for the trailing twelve months is around 6.99%, more than HYG's 5.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYG iShares iBoxx $ High Yield Corporate Bond ETF	5.91%	5.71%	6.01%	5.74%	5.30%	4.02%	4.88%	4.99%	5.54%	5.12%	5.27%	5.90%
PHYL PGIM Active High Yield Bond ETF	6.99%	7.05%	8.28%	7.62%	6.55%	6.13%	7.51%	7.31%	1.79%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both PHYL and HYG in my portfolio?

With a correlation of 0.90, PHYL and HYG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, PHYL or HYG?

HYG has higher volatility (1.21%) compared to PHYL (1.09%). In terms of maximum drawdown, PHYL dropped -22.07% vs HYG's -34.25%.

Which ETF is better, PHYL or HYG?

On 5-year performance, PHYL leads with 4.04% vs 3.81% for HYG. On fees, HYG is cheaper at 0.49% per year. On volatility, PHYL has been the lower-risk option at 1.09%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, PHYL or HYG?

Over the 5-year period, PHYL has performed better with a 4.04% return vs 3.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, PHYL or HYG?

HYG is cheaper with a 0.49% expense ratio, compared with 0.53% for PHYL.

Which ETF pays a higher dividend yield, PHYL or HYG?

PHYL has the higher dividend yield at 6.99%, compared with 5.91% for HYG.

What is the main difference between PHYL and HYG?

They also come from different issuers: Prudential and iShares. Their fees differ too: 0.53% for PHYL and 0.49% for HYG.

Which has better risk-adjusted returns?

PHYL currently has the higher Sharpe Ratio (2.30 vs 1.72), 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.