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HYG vs TLT

iShares iBoxx $ High Yield Corporate Bond ETF vs iShares 20+ Year Treasury Bond ETF

Last updated: 2026-04-02

HYG iShares

iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is an exchange-traded fund issued by iShares that provides exposure to below-investment-grade U.S. corporate bonds offering higher yields. It charges an above-average expense ratio of 0.49%. The fund offers a high dividend yield of 5.88%. Launched in 2007, the fund has a 19-year track record.

AUM: $16.3B ER: 0.49% Yield: 5.88% Since: Apr 4, 2007
TLT iShares

iShares 20+ Year Treasury Bond ETF (TLT) is an exchange-traded fund issued by iShares that provides exposure to long-duration U.S. Treasury bonds with high interest rate sensitivity. It charges a low expense ratio of 0.15%. The fund offers a high dividend yield of 4.51%. Launched in 2002, the fund has a 24-year track record.

AUM: $41.7B ER: 0.15% Yield: 4.51% Since: Jul 22, 2002

Quick Verdict

TLT is significantly cheaper at 0.15% vs 0.49% expense ratio, saving you approximately $662 per $10,000 invested over 10 years. Over the past year, HYG has significantly outperformed with a 0.9% return vs -5.7%. Income investors may prefer HYG for its higher yield (5.9% vs 4.5%).

Key Metrics

Metric HYG TLT
Expense Ratio 0.49% 0.15%
Dividend Yield 5.9% 4.5%
Fund Family iShares iShares
Category US High Yield Bond US Long-Term Treasury

Performance Chart

Indexed to 100 at start (5-year comparison)

60 71 82 93 104 115 2021-04 2022-06 2023-09 2024-12 2026-04
HYG -8.9%
TLT -37.0%

Performance Comparison

Period HYG TLT Difference
1 Month -1.13% -3.74% +2.61%
3 Months -1.61% -0.88% -0.73%
6 Months -1.82% -3.49% +1.67%
YTD -1.61% -0.88% -0.73%
1 Year +0.86% -5.72% +6.58%
3 Years +5.62% -19.08% +24.70%
5 Years -8.89% -37.00% +28.11%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period HYG Fees TLT Fees You Save
$10.000 10 years $960 $298 $662
$10.000 20 years $4.052 $1.278 $2.774
$10.000 30 years $12.832 $4.109 $8.723
$50.000 10 years $4.799 $1.490 $3.309
$50.000 30 years $64.162 $20.547 $43.615
$100.000 30 years $128.324 $41.094 $87.229

Risk Metrics

Based on 5 years of daily returns

Metric HYG TLT
Annualized Volatility 7.6% 15.9%
Max Drawdown -19.3% -46.4%
Sharpe Ratio -0.80 -0.79

Dividend Comparison

Metric HYG TLT
Annual Dividend (per share) $4.67 $3.89
Dividend Yield 5.88% 4.51%
Distribution Frequency Monthly Monthly

Which One Should You Choose?

Choose TLT if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose HYG if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

Choose HYG if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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