HYG vs VTI
HYG vs VTI
iShares iBoxx $ High Yield Corporate Bond ETF vs Vanguard Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 2783 holdings.
Side-by-Side Comparison
| Metric | HYG | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.03% | |
| AUM | $15.9B | $663.5B | |
| Dividend Yield | 5.90% | 1.07% | |
| Holdings | 1,331 | 3,543 | |
| YTD Return | +1.27% | +11.83% | |
| 1Y Return | +4.26% | +21.79% | |
| 3Y Return (annualized) | +8.08% | +20.40% | |
| 5Y Return (annualized) | +3.59% | +11.96% | |
| Volatility (annualized) | 10.0% | 15.3% | |
| Max Drawdown | -41.9% | -56.6% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 4, 2007 | May 24, 2001 |
HYG vs VTI Performance
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is a ETF from iShares by BlackRock (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year HYG returned +4.26% while VTI returned +21.79%. Year to date, HYG is up 1.27% versus a gain of 11.83% for VTI.
Over three years, HYG compounded at +8.08% per year against +20.40% for VTI; over five years the annualized figures are +3.59% and +11.96% respectively. Across the full 19-year window we track, VTI has the edge at +8.06% annualized vs +0.10%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYG charges 0.49% per year while VTI 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 1.07% for VTI.
Holdings Overlap
HYG and VTI share 1 holdings out of 3871 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in HYG | Weight in VTI | Difference |
|---|---|---|---|
| THC | 0.18% | 0.02% | 0.16% |
Frequently Asked Questions
Which is cheaper, HYG or VTI?
HYG has an expense ratio of 0.49% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $46 per year of difference.
Which performed better, HYG or VTI?
Over the past year HYG returned +4.26% vs +21.79% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), HYG annualized +0.10% vs +8.06% for VTI. Past performance does not guarantee future results.
Which is riskier, HYG or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 10.0% for HYG. Worst drawdown: HYG -41.9% vs VTI -56.6%.
Should I hold both HYG and VTI?
HYG and VTI have a monthly-return correlation of 0.76, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYG and VTI?
HYG and VTI share 1 common holdings with a 0.0% weight overlap. Combined, they hold 3871 unique securities.
Which pays a higher dividend, HYG or VTI?
HYG yields 5.90% while VTI yields 1.07%, so HYG currently pays the higher dividend yield.
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