iShares iBoxx $ High Yield Corporate Bond ETF
HYG BondUpdated: Jul 5, 2026, 21:17 UTC
Key Metrics
Sector Allocation
About This ETF
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is a Bond ETF with an expense ratio (TER) of 0.49% and $16.1B in assets under management. The ETF currently yields 5.84% in dividends. Year-to-date, HYG has returned +1.26%.
The underlying index is a rules-based index consisting of U.S. dollar-denominated, high yield corporate bonds for sale in the U.S. The fund will invest at least 80% of its assets in the component securities of the underlying index, and the fund will invest at least 90% of its assets in fixed income securities of the types included in the underlying index that the advisor believes will help the fund track the underlying index.
FAQ — HYG
What is the TER of HYG (iShares iBoxx $ High Yield Corporate Bond ETF)?
HYG has a Total Expense Ratio (TER) of 0.49 % per year. That sits above the bond category median (0.15 % across 8 peer ETFs). The TER is deducted directly from the fund and lowers your effective return.
What return has HYG delivered?
Performance for HYG: YTD: +1.26 % · 3-year p.a.: +8.48 % · 5-year p.a.: +3.61 %. Over 5 years, HYG outperforms the bond category median of +0.03 % by +3.58 pp. Past performance is no guarantee of future returns.
Does HYG pay dividends?
HYG has a current dividend yield of 5.84 %. Distributing ETFs pay this out in cash; accumulating versions reinvest it inside the fund. Check the share class on your broker before buying.
Where can I buy or set up a savings plan for HYG?
HYG is available at most major brokers. For a free monthly savings plan from €1, look at Trade Republic, Scalable Capital or Flatex. The broker comparison on this site shows fees, free-savings-plan ETFs and execution exchanges side by side.
What is the iShares iBoxx $ High Yield Corporate Bond ETF (HYG)?
HYG tracks a broad basket of U.S. dollar-denominated corporate bonds rated below investment grade — debt from issuers carrying higher credit risk. With roughly $17.0B in assets, it is one of the world's most liquid high-yield bond ETFs and is widely watched as a barometer of credit-market risk appetite. Investors gain access to higher running coupons than government or investment-grade bonds offer, in exchange for materially greater default and credit risk. It is a fixed-income vehicle, not an equity play.
Performance & Return Drivers
For high-yield bonds, income is central: the distribution yield currently stands near 5.82%. Over three years HYG delivered roughly 8.94%, and over five years about 3.86% (cumulative total return), while it is up around 1.45% year to date. The drivers differ fundamentally from stocks: coupons, changes in credit spreads, and the path of interest rates. Tightening spreads and falling default rates support prices, whereas recession fears or rising yields weigh on them. Duration is typically shorter than long-dated Treasuries, so interest-rate sensitivity is more moderate. The expense ratio is 0.49%.
Risk Profile
HYG combines two main risks. First, credit risk: high-yield bonds come from lower-rated issuers whose default odds rise in downturns, and price drops often coincide with equity sell-offs, limiting diversification benefits. Second, interest-rate risk through duration, though smaller than for long Treasuries. Liquidity risk can also surface in stress periods.
- Currency risk: The fund is priced in U.S. dollars and holds dollar bonds. For euro-area investors, returns also move with the EUR/USD rate; a stronger euro can erode gains.
- Spread risk: Widening credit spreads can push prices down quickly.
Its 52-week range ran from $78.57 to $81.36.
Who Is It Suitable For?
HYG suits income-oriented investors with a medium-to-long horizon who want a higher running yield and accept credit and price volatility in return. It can serve as a satellite to lift the overall yield of a bond sleeve, or as a tactical tool when the credit outlook is constructive.
- Less suitable for: safety-first investors seeking a stable counterweight to equities — in crises HYG often falls alongside stocks.
- Also a poor fit: those unwilling to bear U.S. dollar currency risk, and anyone with very short-term savings goals.
Distributions are paid regularly, making the ETF appealing for income strategies. This is not investment advice.
How It Compares to Peer Bond ETFs
Within fixed income, HYG occupies a clearly defined niche. Possible alternatives include:
- LQD (iShares Investment Grade Corporate Bond): also corporate debt, but higher credit quality, lower coupons, and reduced default risk.
- AGG or BND (total U.S. bond market): broadly diversified investment-grade mix of government and corporate bonds — more defensive, with a lower yield.
- BNDX (international bonds, currency-hedged): cuts dollar exposure but offers no high-yield premium.
At 0.49%, HYG costs more than core bond ETFs — typical for the more active high-yield segment.
Where can I buy HYG?
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