HYGI vs VYM
iShares Inflation Hedged High Yield Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 568 holdings.
Side-by-Side Comparison
| Metric | HYGI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.52% | 0.04% | |
| AUM | $5M | $79.0B | |
| Dividend Yield | 4.89% | 2.86% | |
| Holdings | 51 | 568 | |
| YTD Return | +5.19% | +16.78% | |
| 1Y Return | +8.69% | +24.43% | |
| 3Y Return (annualized) | +7.58% | +18.60% | |
| 5Y Return (annualized) | - | +12.30% | |
| Volatility (annualized) | 7.6% | 14.6% | |
| Max Drawdown | -9.7% | -58.8% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 22, 2022 | Nov 10, 2006 |
HYGI vs VYM Performance
iShares Inflation Hedged High Yield Bond ETF (HYGI) is a ETF from iShares by BlackRock (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year HYGI returned +8.69% while VYM returned +24.43%. Year to date, HYGI is up 5.19% versus a gain of 16.78% for VYM.
Over three years, HYGI compounded at +7.58% per year against +18.60% for VYM. Across the full 3-year window we track, HYGI has the edge at +8.44% annualized vs +7.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -58.8% for VYM. 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 0.80. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYGI charges 0.52% per year while VYM charges 0.04%. On a $10,000 position that is $52 vs $4 annually, a gap of $48 per year that compounds over a long holding period. On income, HYGI currently yields 4.89% against 2.86% for VYM.
Frequently Asked Questions
Which is cheaper, HYGI or VYM?
HYGI has an expense ratio of 0.52% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $48 per year of difference.
Which performed better, HYGI or VYM?
Over the past year HYGI returned +8.69% vs +24.43% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (3 years), HYGI annualized +8.44% vs +7.11% for VYM. Past performance does not guarantee future results.
Which is riskier, HYGI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.6% for HYGI. Worst drawdown: HYGI -9.7% vs VYM -58.8%.
Should I hold both HYGI and VYM?
HYGI and VYM have a monthly-return correlation of 0.80, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, HYGI or VYM?
HYGI yields 4.89% while VYM yields 2.86%, so HYGI currently pays the higher dividend yield.
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