HYG vs VOO
HYG vs VOO
iShares iBoxx $ High Yield Corporate Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. HYG offers more diversification with 1089 holdings.
Side-by-Side Comparison
| Metric | HYG | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.03% | |
| AUM | $15.9B | $979.0B | |
| Dividend Yield | 5.90% | 1.09% | |
| Holdings | 1,331 | 509 | |
| YTD Return | +1.48% | +9.95% | |
| 1Y Return | +4.84% | +19.58% | |
| 3Y Return (annualized) | +8.10% | +19.43% | |
| 5Y Return (annualized) | +3.67% | +12.89% | |
| Volatility (annualized) | 10.0% | 14.2% | |
| Max Drawdown | -41.9% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 4, 2007 | Sep 7, 2010 |
HYG vs VOO Performance
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year HYG returned +4.84% while VOO returned +19.58%. Year to date, HYG is up 1.48% versus a gain of 9.95% for VOO.
Over three years, HYG compounded at +8.10% per year against +19.43% for VOO; over five years the annualized figures are +3.67% and +12.89% respectively. Across the full 16-year window we track, VOO has the edge at +13.35% annualized vs +0.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -34.3% for VOO. 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 0.79. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYG charges 0.49% per year while VOO 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 VOO.
Holdings Overlap
HYG and VOO share 0 holdings out of 1594 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HYG or VOO?
HYG has an expense ratio of 0.49% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, HYG or VOO?
Over the past year HYG returned +4.84% vs +19.58% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), HYG annualized +0.11% vs +13.35% for VOO. Past performance does not guarantee future results.
Which is riskier, HYG or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 10.0% for HYG. Worst drawdown: HYG -41.9% vs VOO -34.3%.
Should I hold both HYG and VOO?
HYG and VOO have a monthly-return correlation of 0.79, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYG and VOO?
HYG and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1594 unique securities.
Which pays a higher dividend, HYG or VOO?
HYG yields 5.90% while VOO yields 1.09%, so HYG currently pays the higher dividend yield.
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