HYGH vs VYM
HYGH vs VYM
iShares Interest Rate Hedged High Yield Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. HYGH offers more diversification with 867 holdings.
Side-by-Side Comparison
| Metric | HYGH | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.04% | |
| AUM | $595M | $79.0B | |
| Dividend Yield | 6.61% | 2.86% | |
| Holdings | 177 | 568 | |
| YTD Return | +3.77% | +13.24% | |
| 1Y Return | +6.85% | +23.76% | |
| 3Y Return (annualized) | +9.04% | +16.97% | |
| 5Y Return (annualized) | +7.11% | +12.26% | |
| Volatility (annualized) | 6.8% | 14.6% | |
| Max Drawdown | -33.0% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | May 27, 2014 | Nov 10, 2006 |
HYGH vs VYM Performance
iShares Interest Rate Hedged High Yield Bond ETF (HYGH) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HYGH returned +6.85% while VYM returned +23.76%. Year to date, HYGH is up 3.77% versus a gain of 13.24% for VYM.
Over three years, HYGH compounded at +9.04% per year against +16.97% for VYM; over five years the annualized figures are +7.11% and +12.26% respectively. Across the full 12-year window we track, VYM has the edge at +6.96% annualized vs +1.86%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 6.8% for HYGH. 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 -33.0% for HYGH and -58.8% for VYM. 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 0.78. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYGH charges 0.52% per year while VYM charges 0.04%. On a $10,000 position that is $52 vs $4 annually, a gap of $48 per year that compounds over a long holding period. On income, HYGH currently yields 6.61% against 2.86% for VYM.
Holdings Overlap
HYGH and VYM share 0 holdings out of 1425 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, HYGH or VYM?
HYGH has an expense ratio of 0.52% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $48 per year of difference.
Which performed better, HYGH or VYM?
Over the past year HYGH returned +6.85% vs +23.76% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (12 years), HYGH annualized +1.86% vs +6.96% for VYM. Past performance does not guarantee future results.
Which is riskier, HYGH or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 6.8% for HYGH. Worst drawdown: HYGH -33.0% vs VYM -58.8%.
Should I hold both HYGH and VYM?
HYGH and VYM have a monthly-return correlation of 0.78, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HYGH and VYM?
HYGH and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1425 unique securities.
Which pays a higher dividend, HYGH or VYM?
HYGH yields 6.61% while VYM yields 2.86%, so HYGH currently pays the higher dividend yield.
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