VFIIX vs. HYG

Last updated Jun 4, 2026

VFIIX (Vanguard GNMA Fund Investor Shares) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both funds - VFIIX is a Total Bond Market fund managed by Vanguard, while HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. Over the past 10 years, VFIIX returned 1.31%/yr vs 4.94%/yr for HYG. At a 0.10 correlation, their price movements are largely independent. VFIIX charges 0.21%/yr vs 0.49%/yr for HYG.

Performance

VFIIX vs. HYG - Performance Comparison

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

Returns By Period

In the year-to-date period, VFIIX achieves a 0.79% return, which is significantly lower than HYG's 1.32% return. Over the past 10 years, VFIIX has underperformed HYG with an annualized return of 1.31%, while HYG has yielded a comparatively higher 4.94% annualized return.

VFIIX

• 1D: 0.00%
• 1M: 0.31%
• YTD: 0.79%
• 6M: 0.89%
• 1Y: 6.35%
• 3Y*: 4.25%
• 5Y*: 0.47%
• 10Y*: 1.31%

HYG

• 1D: -0.28%
• 1M: 0.36%
• YTD: 1.32%
• 6M: 1.73%
• 1Y: 6.51%
• 3Y*: 8.48%
• 5Y*: 3.77%
• 10Y*: 4.94%

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

VFIIX vs. HYG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VFIIX Vanguard GNMA Fund Investor Shares	0.79%	7.73%	1.07%	5.17%	-10.81%	-1.24%	3.73%	5.84%	0.89%	1.88%
HYG iShares iBoxx $ High Yield Corporate Bond ETF	1.32%	8.59%	7.97%	11.54%	-10.98%	3.76%	4.47%	14.09%	-2.02%	6.07%

Correlation

The correlation between VFIIX and HYG is 0.52, 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	0.52
Correlation (3Y) Calculated over the trailing 3-year period	0.58
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Apr 12, 2007	0.10

Over the past year, VFIIX and HYG have become more correlated (0.52) than their long-term average of 0.10, meaning their price movements have been converging.

VFIIX vs. HYG - Sectors Allocation Comparison

Sectors	VFIIX	HYG
Financial Services	0.1%	-
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	0.4%
Technology	-	-
Utilities	-	99.6%

Return for Risk

VFIIX vs. HYG — Risk / Return Rank

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

VFIIX

VFIIX Risk / Return Rank: 32
VFIIX Sharpe Ratio Rank: 31
VFIIX Sortino Ratio Rank: 32
VFIIX Omega Ratio Rank: 30
VFIIX Calmar Ratio Rank: 36
VFIIX Martin Ratio Rank: 33

HYG

HYG Risk / Return Rank: 55
HYG Sharpe Ratio Rank: 49
HYG Sortino Ratio Rank: 52
HYG Omega Ratio Rank: 52
HYG Calmar Ratio Rank: 55
HYG Martin Ratio Rank: 66

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.

VFIIX vs. HYG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard GNMA Fund Investor Shares (VFIIX) 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.

	VFIIX	HYG	Difference
Sharpe ratio: Return per unit of total volatility	1.60	1.72	-0.12
Sortino ratio: Return per unit of downside risk	2.36	2.59	-0.23
Omega ratio: Gain probability vs. loss probability	1.29	1.33	-0.04
Calmar ratio: Return relative to maximum drawdown	2.25	2.79	-0.54
Martin ratio: Return relative to average drawdown	7.47	12.34	-4.87
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VFIIX vs. HYG - Sharpe Ratio Comparison

The current VFIIX Sharpe Ratio is 1.60, which is comparable to the HYG Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of VFIIX 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

	VFIIX	HYG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.60	1.72	-0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.08	0.50	-0.43
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.28	0.60	-0.32
Sharpe Ratio (All Time) Calculated using the full available price history	0.64	0.46	+0.18

Drawdowns

VFIIX vs. HYG - Drawdown Comparison

The maximum VFIIX drawdown since its inception was -25.80%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for VFIIX and HYG.

Drawdown Indicators

	VFIIX	HYG	Difference
Max Drawdown Largest peak-to-trough decline	-25.80%	-34.25%	+8.45%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-2.34%	-0.49%
Max Drawdown (3Y) Largest decline over 3 years	-6.97%	-4.56%	-2.41%
Max Drawdown (5Y) Largest decline over 5 years	-15.79%	-15.79%	0.00%
Max Drawdown (10Y) Largest decline over 10 years	-16.20%	-22.03%	+5.83%
Current Drawdown Current decline from peak	-1.38%	-0.28%	-1.10%
Average Drawdown Average peak-to-trough decline	-2.98%	-3.24%	+0.26%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.85%	0.53%	+0.32%

Volatility

VFIIX vs. HYG - Volatility Comparison

Vanguard GNMA Fund Investor Shares (VFIIX) has a higher volatility of 1.54% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.21%. This indicates that VFIIX'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.

Volatility by Period

	VFIIX	HYG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.54%	1.21%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	2.94%	3.01%	-0.07%
Volatility (1Y) Calculated over the trailing 1-year period	4.01%	3.81%	+0.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.21%	7.53%	-1.32%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.70%	8.29%	-3.59%

VFIIX vs. HYG - Expense Ratio Comparison

VFIIX has a 0.21% expense ratio, which is lower than HYG's 0.49% expense ratio.

Dividends

VFIIX vs. HYG - Dividend Comparison

VFIIX's dividend yield for the trailing twelve months is around 3.69%, less than HYG's 5.92% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYG iShares iBoxx $ High Yield Corporate Bond ETF	5.92%	5.71%	6.01%	5.74%	5.30%	4.02%	4.88%	4.99%	5.54%	5.12%	5.27%	5.90%
VFIIX Vanguard GNMA Fund Investor Shares	3.69%	3.62%	3.58%	3.23%	2.34%	0.63%	1.87%	2.76%	2.90%	2.64%	3.01%	2.84%

Frequently Asked Questions

Can I hold both VFIIX and HYG in my portfolio?

VFIIX and HYG have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VFIIX or HYG?

VFIIX has higher volatility (1.54%) compared to HYG (1.21%). In terms of maximum drawdown, VFIIX dropped -25.80% vs HYG's -34.25%.

Which has better risk-adjusted returns?

HYG currently has the higher Sharpe Ratio (1.72 vs 1.60), 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.