IG vs TYO
Principal Investment Grade Corporate ETF vs Direxion Daily 7-10 Year Treasury Bear 3X ETF
Quick Verdict
IG has a lower expense ratio. TYO delivered stronger 1-year returns. IG offers more diversification with 145 holdings.
Side-by-Side Comparison
| Metric | IG | TYO | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 1.00% | |
| AUM | $198M | $12M | |
| Dividend Yield | 5.07% | 2.62% | |
| Holdings | 248 | 6 | |
| 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 Family | Principal Funds | Direxion Shares ETF Trust | |
| Category | Fixed Income | Alternative | |
| Inception | Apr 18, 2018 | Apr 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
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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