HYGI vs VOO
iShares Inflation Hedged High Yield Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | HYGI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.03% | |
| AUM | $5M | $979.0B | |
| Dividend Yield | 4.89% | 1.09% | |
| Holdings | 51 | 509 | |
| YTD Return | +5.19% | +13.72% | |
| 1Y Return | +8.69% | +21.63% | |
| 3Y Return (annualized) | +7.58% | +21.55% | |
| 5Y Return (annualized) | - | +13.26% | |
| Volatility (annualized) | 7.6% | 14.1% | |
| Max Drawdown | -9.7% | -34.3% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 22, 2022 | Sep 7, 2010 |
HYGI vs VOO Performance
iShares Inflation Hedged High Yield Bond ETF (HYGI) is a ETF from iShares by BlackRock (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year HYGI returned +8.69% while VOO returned +21.63%. Year to date, HYGI is up 5.19% versus a gain of 13.72% for VOO.
Over three years, HYGI compounded at +7.58% per year against +21.55% for VOO. Across the full 3-year window we track, VOO has the edge at +13.56% annualized vs +8.44%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 7.6% for HYGI. 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 -9.7% for HYGI and -34.3% for VOO. 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 0.87. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYGI charges 0.52% per year while VOO charges 0.03%. On a $10,000 position that is $52 vs $3 annually, a gap of $49 per year that compounds over a long holding period. On income, HYGI currently yields 4.89% against 1.09% for VOO.
Frequently Asked Questions
Which is cheaper, HYGI or VOO?
HYGI has an expense ratio of 0.52% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $49 per year of difference.
Which performed better, HYGI or VOO?
Over the past year HYGI returned +8.69% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), HYGI annualized +8.44% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, HYGI or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 7.6% for HYGI. Worst drawdown: HYGI -9.7% vs VOO -34.3%.
Should I hold both HYGI and VOO?
HYGI and VOO have a monthly-return correlation of 0.87, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, HYGI or VOO?
HYGI yields 4.89% while VOO yields 1.09%, so HYGI currently pays the higher dividend yield.
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