XBB vs. HYG

Last updated Jun 5, 2026

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 7.84%/yr vs 8.57%/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

The chart below illustrates the hypothetical performance of a $10,000 investment in BondBloxx BB Rated USD High Yield Corporate Bond ETF (XBB) and iShares iBoxx $ High Yield Corporate Bond ETF (HYG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with XBB having a 1.53% return and HYG slightly lower at 1.51%.

XBB

• 1D: 0.21%
• 1M: 0.46%
• YTD: 1.53%
• 6M: 1.76%
• 1Y: 6.37%
• 3Y*: 7.84%
• 5Y*: —
• 10Y*: —

HYG

• 1D: 0.19%
• 1M: 0.40%
• YTD: 1.51%
• 6M: 1.84%
• 1Y: 6.51%
• 3Y*: 8.57%
• 5Y*: 3.81%
• 10Y*: 4.91%

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

XBB vs. HYG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
XBB BondBloxx BB Rated USD High Yield Corporate Bond ETF	1.53%	8.59%	6.41%	10.63%	-3.77%
HYG iShares iBoxx $ High Yield Corporate Bond ETF	1.51%	8.59%	7.97%	11.54%	-4.02%

Correlation

The correlation between XBB and HYG is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.83
Correlation (All Time) Calculated using the full available price history since May 27, 2022	0.88

The correlation between XBB and HYG has been stable across timeframes, ranging from 0.83 to 0.88 - a consistent structural relationship.

XBB vs. HYG - Sectors Allocation Comparison

Sectors	XBB	HYG
Consumer Cyclical	12.4%	-
Industrials	9.2%	-
Communication Services	8.7%	-
Healthcare	6.9%	-
Energy	6.3%	-
Financial Services	6.2%	-
Technology	4.4%	-
Real Estate	4.4%	0.4%
Basic Materials	3.3%	-
Utilities	2.8%	99.6%
Consumer Defensive	2.6%	-

Return for Risk

XBB vs. HYG — Risk / Return Rank

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

XBB

XBB Risk / Return Rank: 50
XBB Sharpe Ratio Rank: 48
XBB Sortino Ratio Rank: 50
XBB Omega Ratio Rank: 50
XBB Calmar Ratio Rank: 48
XBB Martin Ratio Rank: 55

HYG

HYG Risk / Return Rank: 57
HYG Sharpe Ratio Rank: 51
HYG Sortino Ratio Rank: 55
HYG Omega Ratio Rank: 54
HYG Calmar Ratio Rank: 58
HYG Martin Ratio Rank: 68

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.

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.

	XBB	HYG	Difference
Sharpe ratio: Return per unit of total volatility	1.64	1.72	-0.08
Sortino ratio: Return per unit of downside risk	2.41	2.59	-0.19
Omega ratio: Gain probability vs. loss probability	1.31	1.33	-0.02
Calmar ratio: Return relative to maximum drawdown	2.28	2.79	-0.51
Martin ratio: Return relative to average drawdown	9.49	12.34	-2.86
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XBB vs. HYG - Sharpe Ratio Comparison

The current XBB Sharpe Ratio is 1.64, which is comparable to the HYG Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of XBB 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

	XBB	HYG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.64	1.72	-0.08
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.51	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.59	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.81	0.46	+0.35

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.

Drawdown Indicators

	XBB	HYG	Difference
Max Drawdown Largest 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 Drawdown Current decline from peak	-0.20%	-0.09%	-0.11%
Average Drawdown Average peak-to-trough decline	-1.33%	-3.24%	+1.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.67%	0.53%	+0.14%

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 1.25% and 1.21%, 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.

Volatility by Period

	XBB	HYG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.25%	1.21%	+0.04%
Volatility (6M) Calculated over the trailing 6-month period	2.81%	3.01%	-0.20%
Volatility (1Y) Calculated over the trailing 1-year period	3.92%	3.81%	+0.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	7.08%	7.53%	-0.45%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	7.08%	8.29%	-1.21%

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 5.55%, 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	5.55%	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

Can I hold both XBB and HYG in my portfolio?

XBB and HYG have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XBB or HYG?

XBB has higher volatility (1.25%) compared to HYG (1.21%). In terms of maximum drawdown, XBB dropped -8.87% vs HYG's -34.25%.

Which ETF is better, XBB or HYG?

On 3-year performance, HYG leads with 8.57% vs 7.84% 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.

Which ETF has performed better, XBB or HYG?

Over the 3-year period, HYG has performed better with a 8.57% return vs 7.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XBB or HYG?

XBB is cheaper with a 0.20% expense ratio, compared with 0.49% for HYG.

Which ETF pays a higher dividend yield, XBB or HYG?

HYG has the higher dividend yield at 5.91%, compared with 5.55% for XBB.

What is the main difference between XBB and HYG?

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.

Which has better risk-adjusted returns?

HYG currently has the higher Sharpe Ratio (1.72 vs 1.64), 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.