VBR vs. HYGI

Last updated Jul 9, 2026

VBR (Vanguard Small-Cap Value ETF) and HYGI (iShares Inflation Hedged High Yield Bond ETF) are both exchange-traded funds - VBR is a Small Cap Value Equities fund tracking the CRSP US Small Cap Value Index, while HYGI is a Inflation-Protected Bonds fund tracking the BlackRock Inflation Hedged High Yield Bond Index - Benchmark TR Gross. Both are passively managed. A 0.63 correlation means they provide meaningful diversification when combined. VBR charges 0.05%/yr vs 0.52%/yr for HYGI.

Performance

VBR vs. HYGI - Performance Comparison

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

Returns By Period

VBR

• 1D: -1.43%
• 1M: 2.24%
• 6M: 10.93%
• YTD: 13.94%
• 1Y: 21.59%
• 3Y*: 15.65%
• 5Y*: 8.93%
• 10Y*: 10.67%

HYGI

• 1D: —
• 1M: —
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

VBR vs. HYGI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VBR Vanguard Small-Cap Value ETF	13.94%	9.09%	12.40%	16.00%	8.22%
HYGI iShares Inflation Hedged High Yield Bond ETF	0.00%	6.20%	9.16%	11.71%	0.65%

Correlation

The correlation between VBR and HYGI is 0.11, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.11
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (All Time) Calculated using the full available price history since Jun 24, 2022	0.63

Over the past year, the correlation between VBR and HYGI has dropped to 0.11 - well below their long-term average of 0.63, suggesting their price drivers have been diverging.

Return for Risk

VBR vs. HYGI — Risk / Return Rank

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

VBR

VBR Risk / Return Rank: 53
VBR Sharpe Ratio Rank: 49
VBR Sortino Ratio Rank: 52
VBR Omega Ratio Rank: 46
VBR Calmar Ratio Rank: 59
VBR Martin Ratio Rank: 60

HYGI

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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.

VBR vs. HYGI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Small-Cap Value ETF (VBR) and iShares Inflation Hedged High Yield Bond ETF (HYGI). 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.

	VBR	HYGI	Difference
Sharpe ratio: Return per unit of total volatility	1.44	—	—
Sortino ratio: Return per unit of downside risk	2.15	—	—
Omega ratio: Gain probability vs. loss probability	1.25	—	—
Calmar ratio: Return relative to maximum drawdown	2.45	—	—
Martin ratio: Return relative to average drawdown	8.65	—	—

Drawdowns

Drawdown Indicators

	VBR	HYGI	Difference
Max Drawdown Largest peak-to-trough decline	-61.98%	—	—
Max Drawdown (1Y) Largest decline over 1 year	-8.85%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-24.19%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-24.19%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-45.28%	—	—
Current Drawdown Current decline from peak	-1.90%	—	—
Average Drawdown Average peak-to-trough decline	-8.24%	—	—
Ulcer Index Depth and duration of drawdowns from previous peaks	2.50%	—	—

Volatility

Volatility by Period

	VBR	HYGI	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.90%	—	—
Volatility (6M) Calculated over the trailing 6-month period	10.63%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	15.11%	—	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.70%	—	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.65%	—	—

VBR vs. HYGI - Expense Ratio Comparison

VBR has a 0.05% expense ratio, which is lower than HYGI's 0.52% expense ratio.

Dividends

VBR vs. HYGI - Dividend Comparison

VBR's dividend yield for the trailing twelve months is around 1.81%, while HYGI has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYGI iShares Inflation Hedged High Yield Bond ETF	0.50%	3.41%	6.08%	6.22%	3.19%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VBR Vanguard Small-Cap Value ETF	1.81%	1.95%	1.98%	2.12%	2.03%	1.75%	1.68%	2.06%	2.35%	1.79%	1.77%	1.99%

Frequently Asked Questions

Can I hold both VBR and HYGI in my portfolio?

VBR and HYGI have a correlation of 0.11, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VBR or HYGI?

On fees, VBR is cheaper at 0.05% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VBR or HYGI?

VBR is cheaper with a 0.05% expense ratio, compared with 0.52% for HYGI.

Which ETF pays a higher dividend yield, VBR or HYGI?

VBR has the higher dividend yield at 1.81%, compared with 0.50% for HYGI.

What is the main difference between VBR and HYGI?

VBR is categorized as Small Cap Value Equities, while HYGI is Inflation-Protected Bonds. VBR tracks CRSP US Small Cap Value Index, while HYGI tracks BlackRock Inflation Hedged High Yield Bond Index - Benchmark TR Gross. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.05% for VBR and 0.52% for HYGI.