VYM vs. IHYG.L

Last updated Jun 9, 2026

VYM (Vanguard High Dividend Yield ETF) and IHYG.L (iShares € High Yield Corp Bond UCITS ETF EUR (Dist)) are both exchange-traded funds - VYM is a Dividend fund tracking the FTSE High Dividend Yield Index, while IHYG.L is a European High Yield Bonds fund tracking the Markit iBoxx Euro Liquid High Yield Index. Both are passively managed. Over the past 10 years, VYM returned 11.70%/yr vs 3.35%/yr for IHYG.L. At a 0.31 correlation, their price movements are largely independent. VYM charges 0.04%/yr vs 0.50%/yr for IHYG.L.

Performance

VYM vs. IHYG.L - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard High Dividend Yield ETF (VYM) and iShares € High Yield Corp Bond UCITS ETF EUR (Dist) (IHYG.L). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

VYM is traded in USD, while IHYG.L is traded in EUR. To make them comparable, the IHYG.L values have been converted to USD using the latest available exchange rates.

Returns By Period

In the year-to-date period, VYM achieves a 10.82% return, which is significantly higher than IHYG.L's -1.29% return. Over the past 10 years, VYM has outperformed IHYG.L with an annualized return of 11.70%, while IHYG.L has yielded a comparatively lower 3.35% annualized return.

VYM

• 1D: -0.08%
• 1M: 1.71%
• YTD: 10.82%
• 6M: 10.58%
• 1Y: 24.30%
• 3Y*: 17.89%
• 5Y*: 11.33%
• 10Y*: 11.70%

IHYG.L

• 1D: 0.01%
• 1M: -1.85%
• YTD: -1.29%
• 6M: 0.46%
• 1Y: 4.25%
• 3Y*: 8.59%
• 5Y*: 1.48%
• 10Y*: 3.35%

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

VYM vs. IHYG.L - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VYM Vanguard High Dividend Yield ETF	10.82%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%
IHYG.L iShares € High Yield Corp Bond UCITS ETF EUR (Dist)	-1.29%	19.47%	-0.83%	14.86%	-14.91%	-3.98%	10.09%	7.57%	-8.07%	19.64%

Correlation

The correlation between VYM and IHYG.L is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.36
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.39
Correlation (10Y) Calculated over the trailing 10-year period	0.31
Correlation (All Time) Calculated using the full available price history since Sep 6, 2010	0.31

VYM vs. IHYG.L - Sectors Allocation Comparison

Sectors	VYM	IHYG.L
Financial Services	20.5%	100.0%
Technology	17.7%	-
Healthcare	12.2%	-
Industrials	12.1%	-
Energy	9.8%	-
Consumer Defensive	8.1%	-
Consumer Cyclical	6.7%	-
Utilities	5.7%	-
Communication Services	3.5%	-
Basic Materials	3.5%	-
Real Estate	0.0%	-

Return for Risk

VYM vs. IHYG.L — Risk / Return Rank

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

VYM

VYM Risk / Return Rank: 80
VYM Sharpe Ratio Rank: 81
VYM Sortino Ratio Rank: 83
VYM Omega Ratio Rank: 80
VYM Calmar Ratio Rank: 78
VYM Martin Ratio Rank: 78

IHYG.L

IHYG.L Risk / Return Rank: 28
IHYG.L Sharpe Ratio Rank: 26
IHYG.L Sortino Ratio Rank: 28
IHYG.L Omega Ratio Rank: 26
IHYG.L Calmar Ratio Rank: 25
IHYG.L Martin Ratio Rank: 33

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.

VYM vs. IHYG.L - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard High Dividend Yield ETF (VYM) and iShares € High Yield Corp Bond UCITS ETF EUR (Dist) (IHYG.L). 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.

	VYM	IHYG.L	Difference
Sharpe ratio: Return per unit of total volatility	2.36	0.55	+1.81
Sortino ratio: Return per unit of downside risk	3.36	0.85	+2.51
Omega ratio: Gain probability vs. loss probability	1.43	1.10	+0.33
Calmar ratio: Return relative to maximum drawdown	3.65	0.58	+3.07
Martin ratio: Return relative to average drawdown	13.64	1.67	+11.97
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VYM vs. IHYG.L - Sharpe Ratio Comparison

The current VYM Sharpe Ratio is 2.36, which is higher than the IHYG.L Sharpe Ratio of 0.55. The chart below compares the historical Sharpe Ratios of VYM and IHYG.L, 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

	VYM	IHYG.L	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.36	0.55	+1.81
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.81	0.14	+0.68
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.72	0.31	+0.41
Sharpe Ratio (All Time) Calculated using the full available price history	0.50	0.31	+0.20

Drawdowns

VYM vs. IHYG.L - Drawdown Comparison

The maximum VYM drawdown since its inception was -56.98%, which is greater than IHYG.L's maximum drawdown of -31.65%. Use the drawdown chart below to compare losses from any high point for VYM and IHYG.L.

Drawdown Indicators

	VYM	IHYG.L	Difference
Max Drawdown Largest peak-to-trough decline	-56.98%	-31.65%	-25.33%
Max Drawdown (1Y) Largest decline over 1 year	-6.69%	-7.35%	+0.66%
Max Drawdown (3Y) Largest decline over 3 years	-14.46%	-7.61%	-6.85%
Max Drawdown (5Y) Largest decline over 5 years	-15.84%	-31.62%	+15.78%
Max Drawdown (10Y) Largest decline over 10 years	-35.21%	-31.65%	-3.56%
Current Drawdown Current decline from peak	-1.89%	-3.97%	+2.08%
Average Drawdown Average peak-to-trough decline	-7.19%	-8.99%	+1.80%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.79%	2.54%	-0.75%

Volatility

VYM vs. IHYG.L - Volatility Comparison

Vanguard High Dividend Yield ETF (VYM) has a higher volatility of 2.82% compared to iShares € High Yield Corp Bond UCITS ETF EUR (Dist) (IHYG.L) at 2.00%. This indicates that VYM's price experiences larger fluctuations and is considered to be riskier than IHYG.L based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VYM	IHYG.L	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.82%	2.00%	+0.82%
Volatility (6M) Calculated over the trailing 6-month period	7.73%	5.86%	+1.87%
Volatility (1Y) Calculated over the trailing 1-year period	10.35%	7.71%	+2.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	13.98%	10.62%	+3.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.35%	10.79%	+5.56%

VYM vs. IHYG.L - Expense Ratio Comparison

VYM has a 0.04% expense ratio, which is lower than IHYG.L's 0.50% expense ratio.

Dividends

VYM vs. IHYG.L - Dividend Comparison

VYM's dividend yield for the trailing twelve months is around 2.22%, less than IHYG.L's 5.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IHYG.L iShares € High Yield Corp Bond UCITS ETF EUR (Dist)	5.18%	5.44%	6.10%	5.41%	3.70%	3.07%	3.67%	3.76%	3.68%	3.77%	4.03%	4.59%
VYM Vanguard High Dividend Yield ETF	2.22%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Frequently Asked Questions

Can I hold both VYM and IHYG.L in my portfolio?

VYM and IHYG.L have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, VYM or IHYG.L?

On fees, VYM is cheaper at 0.04% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, VYM or IHYG.L?

VYM is cheaper with a 0.04% expense ratio, compared with 0.50% for IHYG.L.

What is the main difference between VYM and IHYG.L?

VYM is categorized as Dividend, while IHYG.L is European High Yield Bonds. VYM tracks FTSE High Dividend Yield Index, while IHYG.L tracks Markit iBoxx Euro Liquid High Yield Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.04% for VYM and 0.50% for IHYG.L.