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VB vs. HYG
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VB vs. HYG

Last updated Jun 13, 2026

VB (Vanguard Small-Cap ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - VB is a Small Cap Blend Equities fund tracking the CRSP US Small Cap 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, VB returned 11.61%/yr vs 5.04%/yr for HYG. A 0.63 correlation means they provide meaningful diversification when combined. VB charges 0.05%/yr vs 0.49%/yr for HYG.

Performance

VB vs. HYG - Performance Comparison

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

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Returns By Period

In the year-to-date period, VB achieves a 15.33% return, which is significantly higher than HYG's 1.65% return. Over the past 10 years, VB has outperformed HYG with an annualized return of 11.61%, while HYG has yielded a comparatively lower 5.04% annualized return.

VB

1D
0.70%
1M
3.75%
YTD
15.33%
6M
13.69%
1Y
28.72%
3Y*
16.14%
5Y*
6.98%
10Y*
11.61%

HYG

1D
0.00%
1M
0.55%
YTD
1.65%
6M
2.21%
1Y
6.49%
3Y*
8.52%
5Y*
3.75%
10Y*
5.04%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VB vs. HYG - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VB
Vanguard Small-Cap ETF		15.33%8.87%14.17%18.22%-17.51%17.57%19.19%27.34%-9.34%16.26%
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 VB and HYG is 0.72, 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

0.72

Correlation (3Y)
Calculated over the trailing 3-year period

0.71

Correlation (5Y)
Calculated over the trailing 5-year period

0.72

Correlation (10Y)
Calculated over the trailing 10-year period

0.71

Correlation (All Time)
Calculated using the full available price history since Apr 11, 2007

0.63

The correlation between VB and HYG has been stable across timeframes, ranging from 0.63 to 0.72 - a consistent structural relationship.

VB vs. HYG - Sectors Allocation Comparison

Sectors
VB
HYG

Industrials

20.8%

-

Technology

17.2%

-

Financial Services

12.6%

-

Consumer Cyclical

11.3%

-

Healthcare

11.1%

-

Real Estate

7.6%
0.4%

Basic Materials

4.8%

-

Energy

4.7%

-

Consumer Defensive

3.4%

-

Utilities

3.3%
99.6%

Communication Services

3.1%

-

Industrials

VB
20.8%
HYG

-

Technology

VB
17.2%
HYG

-

Financial Services

VB
12.6%
HYG

-

Consumer Cyclical

VB
11.3%
HYG

-

Healthcare

VB
11.1%
HYG

-

Real Estate

VB
7.6%
HYG
0.4%

Basic Materials

VB
4.8%
HYG

-

Energy

VB
4.7%
HYG

-

Consumer Defensive

VB
3.4%
HYG

-

Utilities

VB
3.3%
HYG
99.6%

Communication Services

VB
3.1%
HYG

-

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Small-Cap ETF

iShares iBoxx $ High Yield Corporate Bond ETF

Often compared with VB:
VB vs. VBRVB vs. IJRVB vs. VOOVB vs. VBKVB vs. SCHAVB vs. VTWOVB vs. FSSNX
Often compared with HYG:
HYG vs. LQDHYG vs. JNKHYG vs. SPHYHYG vs. AGGHYG vs. USHYHYG vs. HYGHHYG vs. SHYG

Return for Risk

VB vs. HYG — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VB
VB Risk / Return Rank: 6464
Overall Rank
VB Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
VB Sortino Ratio Rank: 6060
Sortino Ratio Rank
VB Omega Ratio Rank: 5555
Omega Ratio Rank
VB Calmar Ratio Rank: 7373
Calmar Ratio Rank
VB Martin Ratio Rank: 7373
Martin Ratio Rank
HYG
HYG Risk / Return Rank: 6464
Overall Rank
HYG Sharpe Ratio Rank: 5757
Sharpe Ratio Rank
HYG Sortino Ratio Rank: 6363
Sortino Ratio Rank
HYG Omega Ratio Rank: 6060
Omega Ratio Rank
HYG Calmar Ratio Rank: 6464
Calmar Ratio Rank
HYG Martin Ratio Rank: 7575
Martin Ratio Rank
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.

VB vs. HYG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap ETF (VB) 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.

VBHYGDifference
Sharpe ratioReturn per unit of total volatility
1.73
1.68

+0.05

Sortino ratioReturn per unit of downside risk
2.47
2.54

-0.07

Omega ratioGain probability vs. loss probability

1.30

1.32

-0.02

Calmar ratioReturn relative to maximum drawdown

3.21

2.79

+0.42

Martin ratioReturn relative to average drawdown

11.80

12.25

-0.45

VB vs. HYG - Sharpe Ratio Comparison

The current VB Sharpe Ratio is 1.73, which is comparable to the HYG Sharpe Ratio of 1.68. The chart below compares the historical Sharpe Ratios of VB 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.

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Drawdowns

VB vs. HYG - Drawdown Comparison

The maximum VB drawdown since its inception was -59.56%, which is greater than HYG's maximum drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for VB and HYG.

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Drawdown Indicators

VBHYGDifference

Max Drawdown

Largest peak-to-trough decline

-59.56%

-34.25%

-25.31%

Max Drawdown (1Y)

Largest decline over 1 year

-8.98%

-2.34%

-6.64%

Max Drawdown (3Y)

Largest decline over 3 years

-25.36%

-4.56%

-20.80%

Max Drawdown (5Y)

Largest decline over 5 years

-28.15%

-15.79%

-12.36%

Max Drawdown (10Y)

Largest decline over 10 years

-42.05%

-22.03%

-20.02%

Current Drawdown

Current decline from peak

0.00%

0.00%

0.00%

Average Drawdown

Average peak-to-trough decline

-8.43%

-3.24%

-5.19%

Ulcer Index

Depth and duration of drawdowns from previous peaks

2.44%

0.53%

+1.91%

Volatility

VB vs. HYG - Volatility Comparison

Vanguard Small-Cap ETF (VB) has a higher volatility of 5.41% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.31%. This indicates that VB'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

VBHYGDifference

Volatility (1M)

Calculated over the trailing 1-month period

5.41%

1.31%

+4.10%

Volatility (6M)

Calculated over the trailing 6-month period

12.24%

3.08%

+9.16%

Volatility (1Y)

Calculated over the trailing 1-year period

16.68%

3.87%

+12.81%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

20.80%

7.53%

+13.27%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.44%

8.29%

+13.15%

VB vs. HYG - Expense Ratio Comparison

VB has a 0.05% expense ratio, which is lower than HYG's 0.49% expense ratio.

Dividends

VB vs. HYG - Dividend Comparison

VB's dividend yield for the trailing twelve months is around 1.18%, less than HYG's 5.90% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
VB
Vanguard Small-Cap ETF		1.18%1.33%1.30%1.55%1.59%1.24%1.14%1.39%1.67%1.35%1.50%1.48%

Frequently Asked Questions

VB and HYG have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

VB has higher volatility (5.41%) compared to HYG (1.31%). In terms of maximum drawdown, VB dropped -59.56% vs HYG's -34.25%.

On 10-year performance, VB leads with 11.61% vs 5.04% for HYG. On fees, VB is cheaper at 0.05% 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, VB has performed better with a 11.61% return vs 5.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VB is cheaper with a 0.05% expense ratio, compared with 0.49% for HYG.

HYG has the higher dividend yield at 5.90%, compared with 1.18% for VB.

VB is categorized as Small Cap Blend Equities, while HYG is High Yield Bonds. VB tracks CRSP US Small Cap Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for VB and 0.49% for HYG.

VB currently has the higher Sharpe Ratio (1.73 vs 1.68), 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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