HYG vs IVV

HYG vs IVV

Which is better, HYG or IVV?

High Yield Bond against Large Cap Blend.

IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window.

Lower Fees: IVVHigher Returns: IVV

MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.

Side-by-Side Comparison

MetricHYGIVV
Expense Ratio0.49%0.03%Best
AUM$15.7B$876.4B
Dividend Yield5.88%1.06%
Holdings1,332508
YTD Return+1.40%+12.51%Best
1Y Return+2.89%+17.57%Best
3Y Return (annualized)+7.97%+21.27%Best
5Y Return (annualized)+3.42%+12.95%Best
Volatility (annualized)10.0%Best15.5%
Max Drawdown-41.9%Best-56.5%
$10,000 over 5 years$11,831$18,384Best
Fund FamilyiShares by BlackRock (US)iShares by BlackRock (US)
CategoryFixed IncomeEquity
StyleHigh Yield BondLarge Cap Blend
InceptionApr 4, 2007May 15, 2000

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Apr 11, 2007 to Sep 11, 2026 (19.4 years).

HYG vs IVV growth

Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.

HYG vs IVV Performance

iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is an ETF from iShares by BlackRock (US) and iShares Core S&P 500 ETF (IVV) is an ETF from iShares by BlackRock (US). Over the past year HYG returned +2.89% while IVV returned +17.57%. Year to date, HYG is up 1.40% versus a gain of 12.51% for IVV.

Over three years, HYG compounded at +7.97% per year against +21.27% for IVV; over five years the annualized figures are +3.42% and +12.95% respectively. Across the full 19-year window we track, IVV has the edge at +9.43% annualized vs +0.11%.

Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

IVV has been the more volatile fund, with annualized monthly volatility of 15.5% 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 -56.5% for IVV. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HYG charges 0.49% per year while IVV 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 5.88% against 1.06% for IVV.

Holdings Overlap

IVV already in HYG0.2%

At least 0.2% of IVV's money is in holdings HYG also owns.

Stated as a floor: for HYG, our book for it covers 74.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

We cannot see either book well enough to say how much of this pair is duplicated.

1 positions in common, counted across the 1,011 positions we hold weights for in HYG and 505 in IVV, against full books of 1,332 and 508.

Top Shared Holdings

StockWeight in HYGWeight in IVVDifference
XTSLABlackrock Cash Funds: Treasury, Sl Agency Shares0.85%0.18%0.67%

You are not choosing between two funds in isolation.

Whichever of HYG and IVV you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.

HYGIVV

Free for up to 10 holdings. No account needed.

Frequently Asked Questions

Which is cheaper, HYG or IVV?

HYG has an expense ratio of 0.49% while IVV charges 0.03%. IVV is the cheaper option, by $46 a year on a $10,000 investment.

Which performed better, HYG or IVV?

Over the past year HYG returned +2.89% vs +17.57% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (19 years), HYG annualized +0.11% vs +9.43% for IVV. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, HYG or IVV?

IVV has been the more volatile fund at 15.5% annualized versus 10.0% for HYG. Worst drawdown: HYG -41.9% vs IVV -56.5%.

Should I hold both HYG and IVV?

HYG and IVV have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.

Which pays a higher dividend, HYG or IVV?

HYG yields 5.88% while IVV yields 1.06%, so HYG currently pays the higher dividend yield.

Is IVV better than HYG?

IVV has a lower expense ratio. IVV led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.