HUSV vs IG
First Trust Horizon Managed Volatility Domestic ETF vs Principal Investment Grade Corporate ETF
Quick Verdict
IG has a lower expense ratio. HUSV delivered stronger 1-year returns. IG offers more diversification with 145 holdings.
Side-by-Side Comparison
| Metric | HUSV | IG | Winner |
|---|---|---|---|
| Expense Ratio | 0.70% | 0.19% | |
| AUM | $74M | $198M | |
| Dividend Yield | 1.37% | 5.07% | |
| Holdings | 101 | 248 | |
| YTD Return | +7.92% | -1.76% | |
| 1Y Return | +5.19% | +0.69% | |
| 3Y Return (annualized) | +9.65% | +4.77% | |
| 5Y Return (annualized) | +5.95% | -0.76% | |
| Volatility (annualized) | 13.2% | 8.0% | |
| Max Drawdown | -35.7% | -23.8% | |
| Fund Family | First Trust Portfolios (US) | Principal Funds | |
| Category | Equity | Fixed Income | |
| Inception | Aug 24, 2016 | Apr 18, 2018 |
HUSV vs IG Performance
First Trust Horizon Managed Volatility Domestic ETF (HUSV) is a ETF from First Trust Portfolios (US) and Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds. Over the past year HUSV returned +5.19% while IG returned +0.69%. Year to date, HUSV is up 7.92% versus a loss of 1.76% for IG.
Over three years, HUSV compounded at +9.65% per year against +4.77% for IG; over five years the annualized figures are +5.95% and -0.76% respectively. Across the full 8-year window we track, HUSV has the edge at +8.44% annualized vs +0.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
HUSV has been the more volatile fund, with annualized monthly volatility of 13.2% compared with 8.0% for IG. 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 -35.7% for HUSV and -23.8% for IG. 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 0.60. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HUSV charges 0.70% per year while IG charges 0.19%. On a $10,000 position that is $70 vs $19 annually, a gap of $51 per year that compounds over a long holding period. On income, HUSV currently yields 1.37% against 5.07% for IG.
Holdings Overlap
HUSV and IG share 0 holdings out of 246 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, HUSV or IG?
HUSV has an expense ratio of 0.70% while IG charges 0.19%. IG is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, HUSV or IG?
Over the past year HUSV returned +5.19% vs +0.69% for IG, so HUSV leads on 1-year performance. Over the longest common window we track (8 years), HUSV annualized +8.44% vs +0.56% for IG. Past performance does not guarantee future results.
Which is riskier, HUSV or IG?
HUSV has been the more volatile fund at 13.2% annualized versus 8.0% for IG. Worst drawdown: HUSV -35.7% vs IG -23.8%.
Should I hold both HUSV and IG?
HUSV and IG have a monthly-return correlation of 0.60, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HUSV and IG?
HUSV and IG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 246 unique securities.
Which pays a higher dividend, HUSV or IG?
HUSV yields 1.37% while IG yields 5.07%, so IG currently pays the higher dividend yield.
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