LIVE
HYG
iShares iBoxx $ High Yield Corporate Bond ETF · ETF / High Yield Fixed Income
$80.01
+1.35% this month
VERSUS
⟷
COMPARE
BND
Vanguard Total Bond Market ETF · ETF / Total Bond Market
$73.34
+1.57% this month
Scoreboard verdict
Across expense ratio, momentum, yield, fund size, risk
HYG
2
BND
3
Comparison scoreboard
BND LEADS 3/5Exp. Ratio
HYG 0.49%
BND ✓0.03%
1Y Return
HYG ✓+6.65%
BND +4.73%
Div. Yield
HYG ✓5.84%
BND 3.94%
AUM
HYG $16.11B
BND ✓$394.43B
Beta
HYG 0.40
BND ✓0.25
Metrics last refreshed: 6/20/2026
Quick take
HYG vs BND Stock Comparison: AI Score, Valuation, Performance and Upside
HYG and BND serve fundamentally different fixed income roles. HYG is an equity substitute for income — high yield bonds move with stocks in stress periods but provide 6-8% income in normal environments. BND is a portfolio ballast — providing diversification from equities with flight-to-safety Treasury bond appreciation during stock market crashes. For maximum bond income with equity-like risk, HYG; for classic fixed income diversification from equities, BND.
HYG vs BND — iShares High Yield Corporate Bond ETF (1,200+ junk bonds yielding 6-8% with credit spread exposure and equity-correlation in stress periods) versus Vanguard Total Bond Market ETF (10,000+ investment-grade bonds with Treasury-dominant, flight-to-safety characteristics at 0.03% expense ratio for classic portfolio ballast).
Live analysis · updated 6/20/2026
BND holds the edge across 3 of 5 key metrics in this comparison. HYG has delivered stronger 1-year price return (+6.65% vs +4.73% for BND).
Normalized 1Y performance
HYG
BND
Recent returns
HYG
BND
Who should consider this stock?
HYG may suit investors who:
- →prioritize bond income over capital preservation — 6-8% yield from HYG significantly exceeds investment-grade alternatives in favorable credit environments
- →understand HYG's equity-like risk characteristics — high yield bonds fall with stocks in credit crises, making HYG a yield enhancement rather than portfolio ballast
- →believe the current credit cycle provides adequate corporate health to support high yield debt service — default expectations remain low in benign economic environments
- →are comfortable with 15-25% drawdowns during recessions and credit crises as part of the high-yield risk-return tradeoff
BND may suit investors who:
- →want classic portfolio diversification from equities — BND's Treasury bond component typically rises when stocks fall, providing the 60/40 portfolio's risk-reduction benefit
- →value capital preservation and high credit quality — BND's investment-grade bonds have minimal default risk vs HYG's high yield issuers
- →use fixed income as a ballast stabilizer rather than income maximizer — BND's role is risk reduction, not yield enhancement
- →are comfortable with BND's 6-7 year duration and significant price decline risk in rising rate environments in exchange for flight-to-safety appreciation during equity market crashes
Performance & AI score
| Metric | HYG | BND |
|---|---|---|
| ETF score | 32.0 | 51.0 |
| Latest close | $80.01 | $73.34 |
| 1M return | +1.35% | +1.57% |
| 6M return | +2.31% | +0.76% |
| 1Y return | +6.65% | +4.73% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | HYG | BND |
|---|---|---|
| 1Y ago | $11.33K (+13.3%) started 2025-06-18 | $10.9K (+9.0%) started 2025-06-18 |
| 5Y ago | $16.55K (+65.5%) started 2021-06-18 | $11.92K (+19.2%) started 2021-06-18 |
| 10Y ago | $32.53K (+225.3%) started 2016-06-20 | $16.61K (+66.1%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Fund characteristics
| Metric | HYG | BND |
|---|---|---|
| Expense ratio | 0.49% | 0.03% |
| Total assets (AUM) | $16.11B | $394.43B |
| Dividend yield | 5.84% | 3.94% |
| Trailing P/E | 11.00 | N/A |
| Beta | 0.40 | 0.25 |
| 52-week change | 6.65% | 4.73% |
Risk & fund metrics
| Metric | HYG | BND |
|---|---|---|
| 1Y return | +6.65% | +4.73% |
| 6M return | +2.31% | +0.76% |
| 1M return | +1.35% | +1.57% |
| 1Y Sharpe ratio | 0.53 | 0.06 |
| Beta | 0.40 | 0.25 |
| Dividend yield | 5.84% | 3.94% |
| 5Y CAGR | +3.82% | +0.04% |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
HYG max drawdown2.34%
BND max drawdown2.68%
HYG max wkly drop1.10%
BND max wkly drop1.10%
5Y risk snapshot
HYG max drawdown15.79%
BND max drawdown17.91%
HYG max wkly drop6.34%
BND max wkly drop3.50%
10Y risk snapshot
HYG max drawdown22.03%
BND max drawdown18.58%
HYG max wkly drop12.87%
BND max wkly drop8.05%
Performance metrics by period
| Period | Metric | HYG | BND |
|---|---|---|---|
| 1Y | Growth | +6.65% | +4.73% |
| CAGR | +6.66% | +4.73% | |
| Sharpe ratio | 0.53 | 0.06 | |
| Max drawdown | 2.34% | 2.68% | |
| Max daily drop | 0.93% | 0.80% | |
| Max wkly drop | 1.10% | 1.10% | |
| 5Y | Growth | +20.60% | +0.19% |
| CAGR | +3.82% | +0.04% | |
| Sharpe ratio | -0.06 | -0.71 | |
| Max drawdown | 15.79% | 17.91% | |
| Max daily drop | 3.35% | 1.62% | |
| Max wkly drop | 6.34% | 3.50% | |
| 10Y | Growth | +62.38% | +17.99% |
| CAGR | +4.97% | +1.67% | |
| Sharpe ratio | 0.09 | -0.49 | |
| Max drawdown | 22.03% | 18.58% | |
| Max daily drop | 5.50% | 5.44% | |
| Max wkly drop | 12.87% | 8.05% |
Fund overview
| Category | HYG | BND |
|---|---|---|
| Fund name | iShares iBoxx $ High Yield Corporate Bond ETF | Vanguard Total Bond Market Index Fund |
| Type | ETF | ETF |
| Expense ratio | 0.49% | 0.03% |
| Total assets (AUM) | $16.11B | $394.43B |
| Dividend yield | 5.84% | 3.94% |
HYG strengths
- →6-8% yield premium over investment-grade bonds: HYG compensates for higher default risk with meaningfully higher income — significantly outperforming BND's yield in benign credit environments
- →Lower duration than investment-grade: high yield bonds tend to have shorter maturities — less interest rate sensitivity than long-duration investment-grade bonds in HYG vs BND
- →Credit spread tightening appreciation: when economic outlook improves, credit spreads compress and HYG's price appreciates alongside its high income
BND strengths
- →Flight-to-safety benefits during equity crashes: US Treasury bonds in BND typically rise in value when stocks fall sharply — providing the classic 60/40 portfolio diversification benefit
- →10,000+ investment-grade bond diversification: BND's extensive diversification across Treasuries, agencies, and investment-grade corporates minimizes single-issuer default risk
- →0.03% expense ratio: BND is one of the cheapest bond ETFs — keeping almost all bond income for investors
Risks to watch — HYG
- →Default risk in recessions: high yield issuers default at much higher rates in recessions — HYG can lose 15-25% in credit crises even as Treasuries rally (no flight-to-safety benefit)
- →Equity-like correlation in stress: high yield bonds fall with stocks in market crashes — providing no diversification benefit when investors most need it
- →Liquidity risk: in severe market stress, high yield bond liquidity can deteriorate — ETF discounts to NAV widened significantly in March 2020's liquidity crunch
Risks to watch — BND
- →Duration risk in rising rate environments: BND's 6-7 year effective duration means significant price declines when interest rates rise — BND lost ~13% in 2022 as rates spiked
- →Lower yield than HYG: BND's 3.5-5% yield is significantly below HYG's 6-8% — income-focused investors accept lower yield for safety and Treasury bond diversification benefits
- →Return of capital in MBS (mortgage-backed securities): BND's MBS component returns principal with each mortgage payment — reducing reinvestment opportunities in the bond portfolio
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