VUG vs. HYGI

Last updated Jun 14, 2026

VUG (Vanguard Growth ETF) and HYGI (iShares Inflation Hedged High Yield Bond ETF) are both exchange-traded funds - VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth 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 0.59 correlation means they provide meaningful diversification when combined. VUG charges 0.03%/yr vs 0.52%/yr for HYGI.

Performance

VUG vs. HYGI - Performance Comparison

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

Returns By Period

VUG

• 1D: 0.18%
• 1M: -3.64%
• YTD: 4.99%
• 6M: 5.66%
• 1Y: 22.83%
• 3Y*: 23.38%
• 5Y*: 13.78%
• 10Y*: 17.90%

HYGI

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

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

VUG vs. HYGI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
VUG Vanguard Growth ETF	4.99%	19.40%	32.69%	46.83%	-5.65%
HYGI iShares Inflation Hedged High Yield Bond ETF	0.00%	6.20%	9.16%	11.71%	0.65%

Correlation

The correlation between VUG and HYGI is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (All Time) Calculated using the full available price history since Jun 24, 2022	0.59

Over the past year, the correlation between VUG and HYGI has dropped to 0.18 - well below their long-term average of 0.59, suggesting their price drivers have been diverging.

Return for Risk

VUG vs. HYGI — Risk / Return Rank

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

VUG

VUG Risk / Return Rank: 36
VUG Sharpe Ratio Rank: 41
VUG Sortino Ratio Rank: 38
VUG Omega Ratio Rank: 40
VUG Calmar Ratio Rank: 30
VUG Martin Ratio Rank: 33

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.

VUG vs. HYGI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Growth ETF (VUG) 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.

	VUG	HYGI	Difference
Sharpe ratio: Return per unit of total volatility	1.29	—	—
Sortino ratio: Return per unit of downside risk	1.78	—	—
Omega ratio: Gain probability vs. loss probability	1.23	—	—
Calmar ratio: Return relative to maximum drawdown	1.29	—	—
Martin ratio: Return relative to average drawdown	4.43	—	—

Drawdowns

Drawdown Indicators

	VUG	HYGI	Difference
Max Drawdown Largest peak-to-trough decline	-50.68%	—	—
Max Drawdown (1Y) Largest decline over 1 year	-16.53%	—	—
Max Drawdown (3Y) Largest decline over 3 years	-22.85%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-35.61%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-35.61%	—	—
Current Drawdown Current decline from peak	-5.56%	—	—
Average Drawdown Average peak-to-trough decline	-7.09%	—	—
Ulcer Index Depth and duration of drawdowns from previous peaks	4.79%	—	—

Volatility

Volatility by Period

	VUG	HYGI	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	—	—
Volatility (6M) Calculated over the trailing 6-month period	13.00%	—	—
Volatility (1Y) Calculated over the trailing 1-year period	16.46%	—	—
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.30%	—	—
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.48%	—	—

VUG vs. HYGI - Expense Ratio Comparison

VUG has a 0.03% expense ratio, which is lower than HYGI's 0.52% expense ratio.

Dividends

VUG vs. HYGI - Dividend Comparison

VUG's dividend yield for the trailing twelve months is around 0.39%, 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	0.97%	3.41%	6.08%	6.22%	3.19%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VUG Vanguard Growth ETF	0.39%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both VUG and HYGI in my portfolio?

VUG and HYGI have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VUG or HYGI?

On fees, VUG is cheaper at 0.03% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VUG or HYGI?

VUG is cheaper with a 0.03% expense ratio, compared with 0.52% for HYGI.

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

HYGI has the higher dividend yield at 0.97%, compared with 0.39% for VUG.

What is the main difference between VUG and HYGI?

VUG is categorized as Large Cap Growth Equities, while HYGI is Inflation-Protected Bonds. VUG tracks CRSP US Large Cap Growth 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: 0.03% for VUG and 0.52% for HYGI.