YLD vs. HYG
YLD (Principal Active High Yield ETF) and HYG (iShares iBoxx $ High Yield Corporate Bond ETF) are both High Yield Bonds funds. YLD is actively managed, while HYG is passively managed. Over the past 10 years, YLD returned 5.49%/yr vs 4.65%/yr for HYG. A 0.54 correlation means they provide meaningful diversification when combined. YLD charges 0.39%/yr vs 0.49%/yr for HYG.
Performance
YLD vs. HYG - Performance Comparison
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Returns By Period
In the year-to-date period, YLD achieves a 3.38% return, which is significantly higher than HYG's 1.94% return. Over the past 10 years, YLD has outperformed HYG with an annualized return of 5.49%, while HYG has yielded a comparatively lower 4.65% annualized return.
YLD
- 1D
- 0.11%
- 1M
- 0.03%
- 6M
- 2.89%
- YTD
- 3.38%
- 1Y
- 6.14%
- 3Y*
- 8.39%
- 5Y*
- 4.80%
- 10Y*
- 5.49%
HYG
- 1D
- -0.01%
- 1M
- 0.17%
- 6M
- 1.43%
- YTD
- 1.94%
- 1Y
- 5.69%
- 3Y*
- 8.18%
- 5Y*
- 3.73%
- 10Y*
- 4.65%
YLD vs. HYG - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
YLD Principal Active High Yield ETF | 3.38% | 6.55% | 9.19% | 12.93% | -8.78% | 9.17% | 1.50% | 13.58% | -3.30% | 9.12% |
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 1.94% | 8.59% | 7.97% | 11.54% | -10.98% | 3.76% | 4.47% | 14.09% | -2.02% | 6.07% |
Correlation
The correlation between YLD and HYG is 0.75, 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 | 0.75 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.70 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.70 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.55 |
Correlation (All Time) Calculated using the full available price history since Jul 9, 2015 | 0.54 |
Over the past year, YLD and HYG have become more correlated (0.75) than their long-term average of 0.54, meaning their price movements have been converging.
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Return for Risk
YLD vs. HYG — Risk / Return Rank
YLD
HYG
YLD vs. HYG - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Principal Active High Yield ETF (YLD) 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.
| YLD | HYG | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.10 | ||
| Sortino ratioReturn per unit of downside risk | -0.14 | ||
| Omega ratioGain probability vs. loss probability | 1.26 | 1.29 | -0.03 |
| Calmar ratioReturn relative to maximum drawdown | 3.12 | 2.44 | +0.67 |
| Martin ratioReturn relative to average drawdown | 10.73 | 10.77 | -0.04 |
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Drawdowns
YLD vs. HYG - Drawdown Comparison
The maximum YLD drawdown since its inception was -28.34%, smaller than the maximum HYG drawdown of -34.25%. Use the drawdown chart below to compare losses from any high point for YLD and HYG.
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Drawdown Indicators
| YLD | HYG | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -28.34% | -34.25% | +5.91% |
Max Drawdown (1Y)Largest decline over 1 year | -1.98% | -2.34% | +0.36% |
Max Drawdown (3Y)Largest decline over 3 years | -5.62% | -4.56% | -1.06% |
Max Drawdown (5Y)Largest decline over 5 years | -13.89% | -15.79% | +1.90% |
Max Drawdown (10Y)Largest decline over 10 years | -28.34% | -22.03% | -6.31% |
Current DrawdownCurrent decline from peak | -0.11% | -0.09% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -2.68% | -3.22% | +0.54% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.57% | 0.53% | +0.04% |
Volatility
YLD vs. HYG - Volatility Comparison
Principal Active High Yield ETF (YLD) has a higher volatility of 1.09% compared to iShares iBoxx $ High Yield Corporate Bond ETF (HYG) at 0.78%. This indicates that YLD'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.
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Volatility by Period
| YLD | HYG | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.09% | 0.78% | +0.31% |
Volatility (6M)Calculated over the trailing 6-month period | 3.52% | 3.13% | +0.39% |
Volatility (1Y)Calculated over the trailing 1-year period | 4.41% | 3.82% | +0.59% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.40% | 7.54% | -1.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 8.15% | 8.22% | -0.07% |
YLD vs. HYG - Expense Ratio Comparison
YLD has a 0.39% expense ratio, which is lower than HYG's 0.49% expense ratio.
Dividends
YLD vs. HYG - Dividend Comparison
YLD's dividend yield for the trailing twelve months is around 7.27%, more than HYG's 5.90% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HYG iShares iBoxx $ High Yield Corporate Bond ETF | 5.90% | 5.71% | 6.01% | 5.74% | 5.30% | 4.02% | 4.88% | 4.99% | 5.54% | 5.12% | 5.27% | 5.90% |
YLD Principal Active High Yield ETF | 7.27% | 7.33% | 7.12% | 6.46% | 6.51% | 3.92% | 4.40% | 4.81% | 5.42% | 6.28% | 4.47% | 2.56% |
Frequently Asked Questions
YLD and HYG have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
YLD has higher volatility (1.09%) compared to HYG (0.78%). In terms of maximum drawdown, YLD dropped -28.34% vs HYG's -34.25%.
On 10-year performance, YLD leads with 5.49% vs 4.65% for HYG. On fees, YLD is cheaper at 0.39% per year. On volatility, HYG has been the lower-risk option at 0.78%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, YLD has performed better with a 5.49% return vs 4.65%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
YLD is cheaper with a 0.39% expense ratio, compared with 0.49% for HYG.
YLD has the higher dividend yield at 7.27%, compared with 5.90% for HYG.
They also come from different issuers: Principal and iShares. Their fees differ too: 0.39% for YLD and 0.49% for HYG.
HYG currently has the higher Sharpe Ratio (1.50 vs 1.40), 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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