XBB vs. HYG
XBB (BondBloxx BB Rated USD High Yield Corporate Bond ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both High Yield Bonds funds - XBB tracks the ICE BofA BB US Cash Pay High Yield Constrained Index while HYG tracks the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 3 years, XBB returned 8.13%/yr vs 8.74%/yr for HYG. Their correlation of 0.88 suggests significant overlap in exposure. XBB charges 0.20%/yr vs 0.49%/yr for HYG.
Performance
XBB vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, XBB achieves a 1.75% return, which is significantly higher than HYG's 1.54% return.
XBB
- 1D
- 0.05%
- 1M
- 0.80%
- YTD
- 1.75%
- 6M
- 1.56%
- 1Y
- 5.63%
- 3Y*
- 8.13%
- 5Y*
- —
- 10Y*
- —
HYG
- 1D
- -0.03%
- 1M
- 0.44%
- YTD
- 1.54%
- 6M
- 1.53%
- 1Y
- 5.62%
- 3Y*
- 8.74%
- 5Y*
- 3.66%
- 10Y*
- 4.99%
XBB vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
XBB BondBloxx BB Rated USD High Yield Corporate Bond ETF | 1.75% | 8.59% | 6.41% | 10.63% | -2.39% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.54% | 8.59% | 7.97% | 11.54% | -2.69% |
Correlation
The correlation between XBB and HYG is 0.82, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.82 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.83 |
Correlation (All Time) Calculated using the full available price history since May 26, 2022 | 0.88 |
The correlation between XBB and HYG has been stable across timeframes, ranging from 0.82 to 0.88 - a consistent structural relationship.
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Return for Risk
XBB vs. HYG — Risk / Return Rank
XBB
HYG
XBB vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) 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.
| XBB | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.03 | ||
| Sortino ratioReturn per unit of downside risk | -0.10 | ||
| Omega ratioGain probability vs. loss probability | 1.27 | 1.28 | -0.01 |
| Calmar ratioReturn relative to maximum drawdown | 2.02 | 2.41 | -0.39 |
| Martin ratioReturn relative to average drawdown | 8.36 | 10.57 | -2.21 |
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Drawdowns
XBB vs. HYG - Drawdown Comparison
The maximum XBB drawdown since its inception was -8.87%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for XBB and HYG.
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Drawdown Indicators
| XBB | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -8.87% | -34.25% | +25.38% |
Max Drawdown (1Y)Largest decline over 1 year | -2.80% | -2.34% | -0.46% |
Max Drawdown (3Y)Largest decline over 3 years | -3.86% | -4.56% | +0.70% |
Max Drawdown (5Y)Largest decline over 5 years | — | -15.79% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -22.03% | — |
Current DrawdownCurrent decline from peak | -0.12% | -0.24% | +0.12% |
Average DrawdownAverage peak-to-trough decline | -1.32% | -3.23% | +1.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.68% | 0.53% | +0.15% |
Volatility
XBB vs. HYG - Volatility Comparison
BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG) have volatilities of 1.16% and 1.13%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XBB | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.16% | 1.13% | +0.03% |
Volatility (6M)Calculated over the trailing 6-month period | 2.88% | 3.11% | -0.23% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.97% | 3.88% | +0.09% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 7.08% | 7.54% | -0.46% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 7.08% | 8.27% | -1.19% |
XBB vs. HYG - Expense Ratio Comparison
XBB has a 0.20% expense ratio, which is lower than HYG's 0.49% expense ratio.
Dividends
XBB vs. HYG - Dividend Comparison
XBB's dividend yield for the trailing twelve months is around 5.54%, less than HYG's 5.91% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.91% | 5.71% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% |
XBB BondBloxx BB Rated USD High Yield Corporate Bond ETF | 5.54% | 5.42% | 6.35% | 6.15% | 3.73% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
XBB and HYG have a correlation of 0.82, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XBB has higher volatility (1.16%) compared to HYG (1.13%). In terms of maximum drawdown, XBB dropped -8.87% vs HYG's -34.25%.
On 3-year performance, HYG leads with 8.74% vs 8.13% for XBB. On fees, XBB is cheaper at 0.20% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, HYG has performed better with a 8.74% return vs 8.13%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XBB is cheaper with a 0.20% expense ratio, compared with 0.49% for HYG.
HYG has the higher dividend yield at 5.91%, compared with 5.54% for XBB.
XBB tracks ICE BofA BB US Cash Pay High Yield Constrained Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. They also come from different issuers: BondBloxx and iShares. Their fees differ too: 0.20% for XBB and 0.49% for HYG.
HYG currently has the higher Sharpe Ratio (1.46 vs 1.43), 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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