HYG vs IVV
HYG vs IVV
iShares iBoxx $ High Yield Corporate Bond ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. HYG offers more diversification with 1089 holdings.
Side-by-Side Comparison
| Metric | HYG | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.03% | |
| AUM | $15.9B | $865.2B | |
| Dividend Yield | 5.90% | 1.09% | |
| Holdings | 1,331 | 508 | |
| YTD Return | +1.65% | +13.80% | |
| 1Y Return | +4.71% | +23.70% | |
| 3Y Return (annualized) | +8.07% | +21.49% | |
| 5Y Return (annualized) | +3.74% | +13.43% | |
| Volatility (annualized) | 10.0% | 15.1% | |
| Max Drawdown | -41.9% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | iShares by BlackRock (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 4, 2007 | May 15, 2000 |
HYG vs IVV Performance
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is a ETF from iShares by BlackRock (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year HYG returned +4.71% while IVV returned +23.70%. Year to date, HYG is up 1.65% versus a gain of 13.80% for IVV.
Over three years, HYG compounded at +8.07% per year against +21.49% for IVV; over five years the annualized figures are +3.74% and +13.43% respectively. Across the full 19-year window we track, IVV has the edge at +7.05% annualized vs +0.12%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 10.0% for HYG. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -41.9% for HYG and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYG charges 0.49% per year while IVV charges 0.03%. On a $10,000 position that is $49 vs $3 annually, a gap of $46 per year that compounds over a long holding period. On income, HYG currently yields 5.90% against 1.09% for IVV.
Holdings Overlap
HYG and IVV share 1 holdings out of 1593 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HYG | Weight in IVV | Difference |
|---|---|---|---|
| XTSLA | 1.38% | 0.15% | 1.23% |
Frequently Asked Questions
Which is cheaper, HYG or IVV?
HYG has an expense ratio of 0.49% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, HYG or IVV?
Over the past year HYG returned +4.71% vs +23.70% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (19 years), HYG annualized +0.12% vs +7.05% for IVV. Past performance does not guarantee future results.
Which is riskier, HYG or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 10.0% for HYG. Worst drawdown: HYG -41.9% vs IVV -56.5%.
Should I hold both HYG and IVV?
HYG and IVV have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYG and IVV?
HYG and IVV share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1593 unique securities.
Which pays a higher dividend, HYG or IVV?
HYG yields 5.90% while IVV yields 1.09%, so HYG currently pays the higher dividend yield.
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