IG vs TYO

Quick Verdict

IG has a lower expense ratio. TYO delivered stronger 1-year returns. IG offers more diversification with 145 holdings.

Lower Fees: IGHigher Returns: TYOMore Diversified: IG

Side-by-Side Comparison

MetricIGTYOWinner
Expense Ratio0.19%1.00%
AUM$198M$12M
Dividend Yield5.07%2.62%
Holdings2486
YTD Return-1.95%+12.13%
1Y Return+0.44%+11.94%
3Y Return (annualized)+4.69%+5.20%
5Y Return (annualized)-0.73%+14.80%
Volatility (annualized)8.0%19.3%
Max Drawdown-23.8%-90.4%
Fund FamilyPrincipal FundsDirexion Shares ETF Trust
CategoryFixed IncomeAlternative
InceptionApr 18, 2018Apr 16, 2009

IG vs TYO Performance

Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds and Direxion Daily 7-10 Year Treasury Bear 3X ETF (TYO) is a ETF from Direxion Shares ETF Trust. Over the past year IG returned +0.44% while TYO returned +11.94%. Year to date, IG is down 1.95% versus a gain of 12.13% for TYO.

Over three years, IG compounded at +4.69% per year against +5.20% for TYO; over five years the annualized figures are -0.73% and +14.80% respectively. Across the full 8-year window we track, IG has the edge at +0.54% annualized vs -7.19%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TYO has been the more volatile fund, with annualized monthly volatility of 19.3% compared with 8.0% for IG. 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 -23.8% for IG and -90.4% for TYO. 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 -0.66. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

IG charges 0.19% per year while TYO charges 1.00%. On a $10,000 position that is $19 vs $100 annually, a gap of $81 per year that compounds over a long holding period. On income, IG currently yields 5.07% against 2.62% for TYO.

Holdings Overlap

0.0%overlap

IG and TYO share 0 holdings out of 148 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, IG or TYO?

IG has an expense ratio of 0.19% while TYO charges 1.00%. IG is the cheaper option. On a $10,000 investment, that is $81 per year of difference.

Which performed better, IG or TYO?

Over the past year IG returned +0.44% vs +11.94% for TYO, so TYO leads on 1-year performance. Over the longest common window we track (8 years), IG annualized +0.54% vs -7.19% for TYO. Past performance does not guarantee future results.

Which is riskier, IG or TYO?

TYO has been the more volatile fund at 19.3% annualized versus 8.0% for IG. Worst drawdown: IG -23.8% vs TYO -90.4%.

Should I hold both IG and TYO?

IG and TYO have a monthly-return correlation of -0.66, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between IG and TYO?

IG and TYO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 148 unique securities.

Which pays a higher dividend, IG or TYO?

IG yields 5.07% while TYO yields 2.62%, so IG currently pays the higher dividend yield.

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