HYGI vs VXUS

Quick Verdict

VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: VXUSMore Diversified: VXUS

Side-by-Side Comparison

MetricHYGIVXUSWinner
Expense Ratio0.52%0.05%
AUM$5M$156.5B
Dividend Yield4.89%2.60%
Holdings518,747
YTD Return+5.19%+14.57%
1Y Return+8.69%+27.82%
3Y Return (annualized)+7.58%+19.27%
5Y Return (annualized)-+9.28%
Volatility (annualized)7.6%15.1%
Max Drawdown-9.7%-39.9%
Fund FamilyiShares by BlackRock (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionJun 22, 2022Jan 26, 2011

HYGI vs VXUS Performance

iShares Inflation Hedged High Yield Bond ETF (HYGI) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year HYGI returned +8.69% while VXUS returned +27.82%. Year to date, HYGI is up 5.19% versus a gain of 14.57% for VXUS.

Over three years, HYGI compounded at +7.58% per year against +19.27% for VXUS. Across the full 3-year window we track, HYGI has the edge at +8.44% annualized vs +4.86%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.74. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

HYGI charges 0.52% per year while VXUS charges 0.05%. On a $10,000 position that is $52 vs $5 annually, a gap of $47 per year that compounds over a long holding period. On income, HYGI currently yields 4.89% against 2.60% for VXUS.

Frequently Asked Questions

Which is cheaper, HYGI or VXUS?

HYGI has an expense ratio of 0.52% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $47 per year of difference.

Which performed better, HYGI or VXUS?

Over the past year HYGI returned +8.69% vs +27.82% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (3 years), HYGI annualized +8.44% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, HYGI or VXUS?

VXUS has been the more volatile fund at 15.1% annualized versus 7.6% for HYGI. Worst drawdown: HYGI -9.7% vs VXUS -39.9%.

Should I hold both HYGI and VXUS?

HYGI and VXUS have a monthly-return correlation of 0.74, so combining them can provide real diversification depending on your allocation goals.

Which pays a higher dividend, HYGI or VXUS?

HYGI yields 4.89% while VXUS yields 2.60%, so HYGI currently pays the higher dividend yield.

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