USHY vs. HYG
USHY (iShares Broad USD High Yield Corporate Bond ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both High Yield Bonds funds from iShares - USHY tracks the ICE BofA US High Yield Constrained Index while HYG tracks the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 5 years, USHY returned 4.15%/yr vs 3.68%/yr for HYG. Their correlation of 0.94 suggests significant overlap in exposure. USHY charges 0.15%/yr vs 0.49%/yr for HYG.
Performance
USHY vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, USHY achieves a 1.70% return, which is significantly higher than HYG's 1.56% return.
USHY
- 1D
- -0.08%
- 1M
- 0.48%
- YTD
- 1.70%
- 6M
- 1.87%
- 1Y
- 6.34%
- 3Y*
- 9.18%
- 5Y*
- 4.15%
- 10Y*
- —
HYG
- 1D
- -0.09%
- 1M
- 0.46%
- YTD
- 1.56%
- 6M
- 1.74%
- 1Y
- 5.93%
- 3Y*
- 8.75%
- 5Y*
- 3.68%
- 10Y*
- 5.00%
USHY vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
USHY iShares Broad USD High Yield Corporate Bond ETF | 1.70% | 8.81% | 8.45% | 12.73% | -11.18% | 5.02% | 6.17% | 14.24% | -2.41% | 0.16% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.56% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 0.02% |
Correlation
The correlation between USHY and HYG is 0.97 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.98 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.98 |
Correlation (All Time) Calculated using the full available price history since Oct 26, 2017 | 0.94 |
The correlation between USHY and HYG has been stable across timeframes, ranging from 0.94 to 0.98 - a consistent structural relationship.
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Return for Risk
USHY vs. HYG — Risk / Return Rank
USHY
HYG
USHY vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares Broad USD High Yield Corporate Bond ETF (USHY) 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.
| USHY | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.20 | ||
| Sortino ratioReturn per unit of downside risk | +0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.33 | 1.29 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 2.62 | 2.55 | +0.07 |
| Martin ratioReturn relative to average drawdown | 11.73 | 11.18 | +0.55 |
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Drawdowns
USHY vs. HYG - Drawdown Comparison
The maximum USHY drawdown since its inception was -22.44%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for USHY and HYG.
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Drawdown Indicators
| USHY | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -22.44% | -34.25% | +11.81% |
Max Drawdown (1Y)Largest decline over 1 year | -2.43% | -2.34% | -0.09% |
Max Drawdown (3Y)Largest decline over 3 years | -4.66% | -4.56% | -0.10% |
Max Drawdown (5Y)Largest decline over 5 years | -15.56% | -15.79% | +0.23% |
Max Drawdown (10Y)Largest decline over 10 years | — | -22.03% | — |
Current DrawdownCurrent decline from peak | -0.19% | -0.21% | +0.02% |
Average DrawdownAverage peak-to-trough decline | -2.65% | -3.23% | +0.58% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.54% | 0.53% | +0.01% |
Volatility
USHY vs. HYG - Volatility Comparison
The current volatility for iShares Broad USD High Yield Corporate Bond ETF (USHY) is 0.95%, while iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has a volatility of 1.13%. This indicates that USHY 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.
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Volatility by Period
| USHY | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.95% | 1.13% | -0.18% |
Volatility (6M)Calculated over the trailing 6-month period | 2.96% | 3.11% | -0.15% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.68% | 3.88% | -0.20% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.35% | 7.54% | -0.19% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.23% | 8.27% | -0.04% |
USHY vs. HYG - Expense Ratio Comparison
USHY has a 0.15% expense ratio, which is lower than HYG's 0.49% expense ratio.
Dividends
USHY vs. HYG - Dividend Comparison
USHY's dividend yield for the trailing twelve months is around 6.90%, 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% |
USHY iShares Broad USD High Yield Corporate Bond ETF | 6.90% | 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
With a correlation of 0.97, USHY 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.
HYG has higher volatility (1.13%) compared to USHY (0.95%). In terms of maximum drawdown, USHY dropped -22.44% vs HYG's -34.25%.
On 5-year performance, USHY leads with 4.15% vs 3.68% for HYG. On fees, USHY is cheaper at 0.15% per year. On volatility, USHY has been the lower-risk option at 0.95%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, USHY has performed better with a 4.15% return vs 3.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USHY is cheaper with a 0.15% expense ratio, compared with 0.49% for HYG.
USHY has the higher dividend yield at 6.90%, compared with 5.91% for HYG.
USHY tracks ICE BofA US High Yield Constrained Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. Their fees differ too: 0.15% for USHY and 0.49% for HYG.
USHY currently has the higher Sharpe Ratio (1.73 vs 1.54), 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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