HYG vs VXUS
HYG vs VXUS
iShares iBoxx $ High Yield Corporate Bond ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7860 holdings.
Side-by-Side Comparison
| Metric | HYG | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.49% | 0.05% | |
| AUM | $15.9B | $156.5B | |
| Dividend Yield | 5.90% | 2.60% | |
| Holdings | 1,331 | 8,747 | |
| YTD Return | +1.48% | +11.13% | |
| 1Y Return | +4.84% | +27.13% | |
| 3Y Return (annualized) | +8.10% | +17.24% | |
| 5Y Return (annualized) | +3.67% | +8.71% | |
| Volatility (annualized) | 10.0% | 15.1% | |
| Max Drawdown | -41.9% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Apr 4, 2007 | Jan 26, 2011 |
HYG vs VXUS Performance
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year HYG returned +4.84% while VXUS returned +27.13%. Year to date, HYG is up 1.48% versus a gain of 11.13% for VXUS.
Over three years, HYG compounded at +8.10% per year against +17.24% for VXUS; over five years the annualized figures are +3.67% and +8.71% respectively. Across the full 16-year window we track, VXUS has the edge at +4.66% annualized vs +0.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VXUS 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 -39.9% for VXUS. 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 VXUS charges 0.05%. On a $10,000 position that is $49 vs $5 annually, a gap of $44 per year that compounds over a long holding period. On income, HYG currently yields 5.90% against 2.60% for VXUS.
Holdings Overlap
HYG and VXUS share 1 holdings out of 8948 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 VXUS | Difference |
|---|---|---|---|
| MIN:AU | 0.06% | 0.02% | 0.04% |
Frequently Asked Questions
Which is cheaper, HYG or VXUS?
HYG has an expense ratio of 0.49% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $44 per year of difference.
Which performed better, HYG or VXUS?
Over the past year HYG returned +4.84% vs +27.13% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (16 years), HYG annualized +0.11% vs +4.66% for VXUS. Past performance does not guarantee future results.
Which is riskier, HYG or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 10.0% for HYG. Worst drawdown: HYG -41.9% vs VXUS -39.9%.
Should I hold both HYG and VXUS?
HYG and VXUS 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 VXUS?
HYG and VXUS share 1 common holdings with a 0.0% weight overlap. Combined, they hold 8948 unique securities.
Which pays a higher dividend, HYG or VXUS?
HYG yields 5.90% while VXUS yields 2.60%, so HYG currently pays the higher dividend yield.
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