HYG vs VTI
iShares iBoxx $ High Yield Corporate Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Which is better, HYG or VTI?
High Yield Bond against Large Cap Blend.
VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window.
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
| Metric | HYG | VTI |
|---|---|---|
| Expense Ratio | 0.49% | 0.03%Best |
| AUM | $15.7B | $666.9B |
| Dividend Yield | 5.88% | 1.03% |
| Holdings | 1,332 | 3,543 |
| YTD Return | +1.17% | +11.06%Best |
| 1Y Return | +2.54% | +15.41%Best |
| 3Y Return (annualized) | +7.87% | +20.48%Best |
| 5Y Return (annualized) | +3.35% | +11.52%Best |
| Volatility (annualized) | 10.0%Best | 16.0% |
| Max Drawdown | -41.9%Best | -56.6% |
| $10,000 over 5 years | $11,791 | $17,249Best |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | High Yield Bond | Large Cap Blend |
| Inception | Apr 4, 2007 | May 24, 2001 |
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 16, 2026 (19.4 years).
HYG vs VTI 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 VTI Performance
iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is an ETF from iShares by BlackRock (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year HYG returned +2.54% while VTI returned +15.41%. Year to date, HYG is up 1.17% versus a gain of 11.06% for VTI.
Over three years, HYG compounded at +7.87% per year against +20.48% for VTI; over five years the annualized figures are +3.35% and +11.52% respectively. Across the full 19-year window we track, VTI has the edge at +9.26% annualized vs +0.10%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 16.0% 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 -56.6% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.76. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYG charges 0.49% per year while VTI 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 1.03% for VTI.
Holdings Overlap
We hold position weights for 897 holdings in HYG and 3,463 in VTI, totalling 67.8% and 98.1% of the two funds. That is not enough of HYG to divide by, so no overlap percentage is shown here. Within what we can see, 2 positions appear in both.
2 positions in common, counted across the 897 positions we hold weights for in HYG and 3,463 in VTI, against full books of 1,332 and 3,543.
You are not choosing between two funds in isolation.
Whichever of HYG and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HYG or VTI?
HYG has an expense ratio of 0.49% while VTI charges 0.03%. VTI is the cheaper option, by $46 a year on a $10,000 investment.
Which performed better, HYG or VTI?
Over the past year HYG returned +2.54% vs +15.41% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (19 years), HYG annualized +0.10% vs +9.26% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, HYG or VTI?
VTI has been the more volatile fund at 16.0% annualized versus 10.0% for HYG. Worst drawdown: HYG -41.9% vs VTI -56.6%.
Should I hold both HYG and VTI?
HYG and VTI have a monthly-return correlation of 0.76, 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 VTI?
HYG yields 5.88% while VTI yields 1.03%, so HYG currently pays the higher dividend yield.
Is VTI better than HYG?
VTI has a lower expense ratio. VTI 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.