XYLD vs. HYG

Last updated Jun 9, 2026

XYLD (Global X S&P 500 Covered Call ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both exchange-traded funds - XYLD is a Derivative Income fund tracking the Cboe S&P 500 BuyWrite Index, while HYG is a High Yield Bonds fund tracking the Markit iBoxx USD Liquid High Yield Index. Both are passively managed. Over the past 10 years, XYLD returned 8.23%/yr vs 4.88%/yr for HYG. A 0.60 correlation means they provide meaningful diversification when combined. XYLD charges 0.60%/yr vs 0.49%/yr for HYG.

Performance

XYLD vs. HYG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X S&P 500 Covered Call ETF (XYLD) 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, XYLD achieves a 4.47% return, which is significantly higher than HYG's 1.14% return. Over the past 10 years, XYLD has outperformed HYG with an annualized return of 8.23%, while HYG has yielded a comparatively lower 4.88% annualized return.

XYLD

• 1D: 0.27%
• 1M: 0.88%
• YTD: 4.47%
• 6M: 5.83%
• 1Y: 16.60%
• 3Y*: 10.96%
• 5Y*: 7.62%
• 10Y*: 8.23%

HYG

• 1D: 0.14%
• 1M: -0.24%
• YTD: 1.14%
• 6M: 1.72%
• 1Y: 6.36%
• 3Y*: 8.34%
• 5Y*: 3.69%
• 10Y*: 4.88%

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

XYLD vs. HYG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XYLD Global X S&P 500 Covered Call ETF	4.47%	8.02%	19.49%	11.10%	-12.05%	19.59%	-0.56%	21.41%	-6.09%	16.49%
HYG iShares iBoxx $ High Yield Corporate Bond ETF	1.14%	8.59%	7.97%	11.54%	-10.98%	3.76%	4.47%	14.09%	-2.02%	6.07%

Correlation

The correlation between XYLD and HYG is 0.68, 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	0.68
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.62
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Jun 24, 2013	0.60

The correlation between XYLD and HYG shifts across timeframes, from 0.57 (3 years) to 0.68 (1 year), reflecting how their relationship changes across market environments.

XYLD vs. HYG - Sectors Allocation Comparison

Sectors	XYLD	HYG
Technology	35.6%	-
Financial Services	11.8%	-
Communication Services	11.2%	-
Consumer Cyclical	10.2%	-
Healthcare	8.5%	-
Industrials	8.3%	-
Consumer Defensive	4.9%	-
Energy	3.5%	-
Utilities	2.3%	99.6%
Real Estate	1.9%	0.4%
Basic Materials	1.8%	-

Return for Risk

XYLD vs. HYG — Risk / Return Rank

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

XYLD

XYLD Risk / Return Rank: 84
XYLD Sharpe Ratio Rank: 86
XYLD Sortino Ratio Rank: 87
XYLD Omega Ratio Rank: 93
XYLD Calmar Ratio Rank: 69
XYLD Martin Ratio Rank: 86

HYG

HYG Risk / Return Rank: 60
HYG Sharpe Ratio Rank: 54
HYG Sortino Ratio Rank: 58
HYG Omega Ratio Rank: 56
HYG Calmar Ratio Rank: 60
HYG Martin Ratio Rank: 71

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.

XYLD vs. HYG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X S&P 500 Covered Call ETF (XYLD) 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.

	XYLD	HYG	Difference
Sharpe ratio: Return per unit of total volatility	2.53	1.67	+0.86
Sortino ratio: Return per unit of downside risk	3.58	2.49	+1.09
Omega ratio: Gain probability vs. loss probability	1.59	1.32	+0.28
Calmar ratio: Return relative to maximum drawdown	3.15	2.73	+0.42
Martin ratio: Return relative to average drawdown	16.73	12.02	+4.71
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XYLD vs. HYG - Sharpe Ratio Comparison

The current XYLD Sharpe Ratio is 2.53, which is higher than the HYG Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of XYLD 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

	XYLD	HYG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.53	1.67	+0.86
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.68	0.49	+0.19
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.59	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.46	+0.14

Drawdowns

XYLD vs. HYG - Drawdown Comparison

The maximum XYLD drawdown since its inception was -33.46%, roughly equal to the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for XYLD and HYG.

Drawdown Indicators

	XYLD	HYG	Difference
Max Drawdown Largest peak-to-trough decline	-33.46%	-34.25%	+0.79%
Max Drawdown (1Y) Largest decline over 1 year	-5.29%	-2.34%	-2.95%
Max Drawdown (3Y) Largest decline over 3 years	-15.53%	-4.56%	-10.97%
Max Drawdown (5Y) Largest decline over 5 years	-18.66%	-15.79%	-2.87%
Max Drawdown (10Y) Largest decline over 10 years	-33.46%	-22.03%	-11.43%
Current Drawdown Current decline from peak	-0.64%	-0.45%	-0.19%
Average Drawdown Average peak-to-trough decline	-3.72%	-3.24%	-0.48%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.99%	0.53%	+0.46%

Volatility

XYLD vs. HYG - Volatility Comparison

Global X S&P 500 Covered Call ETF (XYLD) has a higher volatility of 1.33% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 1.23%. This indicates that XYLD'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

	XYLD	HYG	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.33%	1.23%	+0.10%
Volatility (6M) Calculated over the trailing 6-month period	5.46%	3.05%	+2.41%
Volatility (1Y) Calculated over the trailing 1-year period	6.60%	3.84%	+2.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.23%	7.53%	+3.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.21%	8.29%	+5.92%

XYLD vs. HYG - Expense Ratio Comparison

XYLD has a 0.60% expense ratio, which is higher than HYG's 0.49% expense ratio.

Dividends

XYLD vs. HYG - Dividend Comparison

XYLD's dividend yield for the trailing twelve months is around 10.57%, more than HYG's 5.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HYG iShares iBoxx $ High Yield Corporate Bond ETF	5.93%	5.71%	6.01%	5.74%	5.30%	4.02%	4.88%	4.99%	5.54%	5.12%	5.27%	5.90%
XYLD Global X S&P 500 Covered Call ETF	10.57%	10.51%	11.54%	10.51%	13.43%	9.07%	7.93%	5.76%	7.12%	5.18%	3.23%	4.65%

Frequently Asked Questions

Can I hold both XYLD and HYG in my portfolio?

XYLD and HYG have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XYLD or HYG?

XYLD has higher volatility (1.33%) compared to HYG (1.23%). In terms of maximum drawdown, XYLD dropped -33.46% vs HYG's -34.25%.

Which ETF is better, XYLD or HYG?

On 10-year performance, XYLD leads with 8.23% vs 4.88% for HYG. On fees, HYG is cheaper at 0.49% 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, XYLD or HYG?

Over the 10-year period, XYLD has performed better with a 8.23% return vs 4.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XYLD or HYG?

HYG is cheaper with a 0.49% expense ratio, compared with 0.60% for XYLD.

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

XYLD has the higher dividend yield at 10.57%, compared with 5.93% for HYG.

What is the main difference between XYLD and HYG?

XYLD is categorized as Derivative Income, while HYG is High Yield Bonds. XYLD tracks Cboe S&P 500 BuyWrite Index, while HYG tracks Markit iBoxx USD Liquid High Yield Index. They also come from different issuers: Global X and iShares. Their fees differ too: 0.60% for XYLD and 0.49% for HYG.

Which has better risk-adjusted returns?

XYLD currently has the higher Sharpe Ratio (2.53 vs 1.67), 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.