What does it mean that these are both high yield corporate bond ETFs?

Both HYG and SHYG invest in corporate debt rated below investment grade. HYG tracks a broad range of these bonds, while SHYG specifically focuses on those with maturities of zero to five years. This distinction means they share a credit risk profile but differ significantly in interest rate sensitivity due to the maturity constraints of SHYG. Investors should understand that high yield bonds typically offer higher potential returns but come with greater credit risk compared to investment-grade bonds, reflecting the issuer's lower creditworthiness.

How do expense ratios differ between HYG and SHYG?

HYG charges an annual expense ratio of 0.49%, whereas SHYG charges 0.30%. This 0.19 percentage point difference represents the ongoing cost of managing the funds. Lower expenses can theoretically improve net returns over time, all else being equal. However, investors should consider the entire cost structure and how it interacts with yield and risk. The expense ratio is deducted from the fund's assets, so it directly impacts the value of holdings. Understanding these fees is crucial for evaluating the long-term efficiency of each ETF option.

What is the significance of the maturity focus in SHYG?

SHYG specifically targets high yield corporate bonds with maturities of zero to five years. This short-duration focus aims to reduce sensitivity to interest rate fluctuations compared to broader high yield ETFs like HYG, which hold bonds across a wider range of maturities. In a rising interest rate environment, shorter-duration bonds generally experience less price decline than longer-duration bonds. Conversely, they may offer lower capital appreciation potential during falling rate periods. This structural difference defines the primary risk-return trade-off between the two funds.

How does the dividend yield compare between the two funds?

SHYG currently offers a dividend yield of 7.06%, which is higher than HYG's yield of 6.02%. These figures represent annualised distributions based on recent payout levels and current market prices. A higher yield may indicate greater income potential, but it also reflects the underlying bond coupons and market conditions. Investors must recognise that dividend yields can fluctuate as market prices change. Past distributions do not guarantee future payouts. The yield difference contributes to the total return potential but should be evaluated alongside interest rate risk and credit quality of the underlying bonds.

What is the scale difference between HYG and SHYG?

HYG is a significantly larger fund, with net assets of $15.0 billion, compared to SHYG's $7.8 billion. Larger funds may benefit from better liquidity and tighter bid-ask spreads, which can reduce trading costs for investors. However, size does not guarantee better performance or tracking accuracy. SHYG's smaller asset base might mean different operational considerations, such as potentially lower capacity for massive inflows without impacting the market. Both funds are managed by iShares, ensuring institutional-grade oversight, but their differing scales may influence their market impact and accessibility for various investor types.

How long have HYG and SHYG been in operation?

HYG has a longer operating history, with an inception date of April 4, 2007. SHYG was launched later, on October 15, 2013. The additional six years of data for HYG provides a more extended track record across different market cycles, including periods of significant financial stress. While this does not ensure future stability, it offers more historical evidence of how the fund has handled various economic conditions. SHYG's shorter history means less data is available to assess its performance during extreme market events, which is a factor for risk-averse investors considering long-term holdings.

Do HYG and SHYG have overlapping top holdings?

According to the available data, there are no shared top ten holdings between HYG and SHYG. This lack of overlap suggests that their portfolio compositions differ substantially, likely due to SHYG's specific maturity constraint of zero to five years versus HYG's broader mandate. Different holdings imply distinct exposure to individual issuer credit risk and sector concentrations. Investors should note that the absence of shared top holdings indicates these funds are not direct substitutes and may perform differently during issuer-specific events or sector rotations within the high yield corporate bond market.

Is interest rate risk similar for both ETFs?

Interest rate risk differs between the two funds due to their duration profiles. SHYG, focusing on zero to five year maturities, generally has a shorter duration than HYG. Shorter duration typically means less sensitivity to interest rate changes, making SHYG potentially less volatile when rates rise. HYG, with a broader maturity range, may experience greater price declines in a rising rate environment. Conversely, during falling rates, HYG might offer more capital appreciation potential. Investors must assess their interest rate outlook when choosing between these high yield options.

How does credit risk compare between the two funds?

Both funds invest in high yield corporate bonds, meaning they share a baseline level of credit risk. Issuers in these categories are rated below investment grade, indicating higher default risk than investment-grade bonds. While the underlying asset class is the same, the specific credit profiles of the holdings may vary. SHYG's shorter duration might allow it to react more quickly to deteriorating credit conditions by rolling off matured bonds, potentially mitigating some long-term credit exposure. However, both are subject to the economic stresses affecting corporate issuers in the high yield sector.

Are there any missing data points for these ETFs?

Yes, key information such as the specific index tracked, top individual holdings, and sector weight breakdowns are currently not available for either HYG or SHYG in the provided data. The absence of sector weights prevents a direct comparison of industry concentration risks. Furthermore, without knowing the exact index methodology, it is difficult to fully understand the selection criteria. Investors should look for updated fact sheets from the issuer, iShares, to obtain these details, which are crucial for a comprehensive due diligence process before making any investment decisions.

What should beginners know about the educational nature of this page?

This page is designed for educational purposes only and does not constitute financial advice or a recommendation to buy or sell. The comparison of fees, yields, sizes, and maturity structures aims to help beginners interpret fund data. Investors must conduct their own research and consider their personal risk tolerance, investment horizon, and financial goals. The figures presented are from a specific date and may change. Always consult a qualified financial professional for advice tailored to your individual circumstances before making investment decisions.

HYG vs SHYG

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares HYG and SHYG, focusing on fees, holdings, dividends and market tracking. HYG has a 0.49% expense ratio, while SHYG's is 0.30%. Both are iShares high yield corporate bond ETFs with differing yields and sizes. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

HYG

Metric

SHYG

0.49%

Expense Ratio

0.30%

6.02%

Dividend Yield

7.06%

$14.96B

Net Assets

$7.75B

1,339

Holdings

1,157

Apr 4, 2007

Inception Date

Oct 15, 2013

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Index Tracked

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High Yield Bond

Fund Category

High Yield Bond

SHYG costs about $19.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

HYG

Pros

HYG benefits from a long operating history since its inception in April 2007.
The fund provides access to a substantial asset base of $15.0 billion.
Its dividend yield of 6.02% offers a regular income stream to investors.

Considerations

The expense ratio of 0.49% is higher than some competing high-yield bond funds.
Index tracked, top holdings, and sector weights are not available for this fund.
Larger funds may face challenges in maintaining tracking precision during significant market shifts.

SHYG

Pros

SHYG features a lower expense ratio of 0.30% compared to Fund A.
The fund's dividend yield of 7.06% provides a relatively higher income potential.
It focuses on 0-5 year high yield corporate bonds, potentially reducing interest rate risk.

Considerations

SHYG is smaller than Fund A, with net assets of $7.8 billion.
Key information such as the tracked index, top holdings, and sector weights are not available.
Its inception in October 2013 gives it a shorter track record than Fund A.

About HYG and SHYG

HYG (HYG)

The iShares High Yield Corporate Bond ETF (HYG) provides investors with exposure to US high yield corporate bonds, often referred to as 'junk' or below-investment-grade debt. With a dividend yield of 6.02%, this fund aims to generate income through the relatively high coupon rates of these bonds. However, investors should remember that higher yields come with higher risks, including potential defaults and sensitivity to economic downturns. This fund offers a diversified portfolio of corporate bonds, potentially making it a useful component for those seeking income generation and portfolio diversification, though past performance does not guarantee future results.

SHYG (SHYG)

The iShares 0-5 Year High Yield Corporate Bond ETF (SHYG) provides exposure to short-term, high-yield corporate bonds issued by US companies. With a low duration of 0-5 years, this fund offers a potentially less volatile alternative to long-term bond funds while still targeting attractive income. The ETF tracks an index of these securities, aiming to match its performance while managing credit risk inherent in high-yield sectors. With net assets of USD 7.75 billion and an expense ratio of 0.30%, it offers a cost-effective way to diversify a portfolio's fixed-income allocation. While the current dividend yield of 7.06% is compelling, it's important to remember that values and returns can fluctuate. This fund is generally suited for investors seeking regular income opportunities within the corporate bond market, particularly those focused on mitigating interest rate sensitivity over the short term.

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HYG vs SHYG

Fund Snapshot