At a glance
HYG charges 0.49% a year, above the 0.29% average of the 7 funds most like it (the 7th cheapest of 8). It has $16.19B in assets, the 2nd largest of that group; it paid 6.1% of its price in distributions over the past 12 months, monthly. Over the past year it returned +0.9% with distributions reinvested, 7th of those 8 funds; over three years it returned +7.4% a year. At its worst it fell 22.0% in the 2020 crash (S&P 500: 33.7%) and 15.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 15 months after the lows. Its ten largest positions make up 3.6% of the fund, out of 1,322 in all.
The short version
The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) tracks the iBoxx USD Liquid High Yield Index. It holds about 1,300 "junk" bonds, which are bonds from companies rated below investment grade, and it pays income monthly. With $16.2 billion in net assets as of August 31, 2026, it is the second-largest of the similar funds we compared. But its 0.49% expense ratio is far above USHY (0.08%) and SPHY (0.05%).
Price history
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HYG +0.9% over the year to Nov 2, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| HYG official prospectus, to Dec 31, 2025 | — | +8.56% | — | +3.94% | +5.51% | — |
| Bloomberg US Universal Index index, same period | — | +7.58% | — | +0.06% | +2.44% | — |
| Iboxx USD Liquid High Yield Index index, same period | — | +8.83% | — | +4.34% | +6.01% | — |
| HYG price data to Nov 2, 2026 | -0.3% | +0.9% | +7.4% | +3.2% | +4.3% | +4.7% |
- Over the year to Nov 2, 2026, HYG returned +0.9%, 7th of 8 among similar funds.
- Its 5-year annualized return was +3.2% and its 10-year +4.3%.
- In the 2020 COVID crash it fell 22% and regained its old high 7.5 months after the low.
- Its worst full calendar year was 2008 (-17.6%); its best was 2009 (+28.6%).
- The deepest fall in its price history was 34.3% (Sep 19, 2007 to Nov 20, 2008), recovered by Dec 2, 2009.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -0.3% | — |
| 2025 | +8.6% | +8.56% |
| 2024 | +8.0% | +7.70% |
| 2023 | +11.5% | +12.41% |
| 2022 | -11.0% | -11.37% |
| 2021 | +3.8% | +4.12% |
| 2020 | +4.1% | +4.12% |
| 2019 | +14.1% | +14.23% |
| 2018 | -2.0% | -1.93% |
| 2017 | +6.1% | +6.09% |
| 2016 | +13.4% | +13.92% |
| 2015 | -5.0% | — |
| 2014 | +1.9% | — |
| 2013 | +5.8% | — |
| 2012 | +11.7% | — |
| 2011 | +6.8% | — |
| 2010 | +11.9% | — |
| 2009 | +28.6% | — |
| 2008 | -17.6% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 32.9% over that stretch · deepest drop along the way 34.2%, back to its old high 11.9 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 21.9% over that stretch · deepest drop along the way 22%, back to its old high 7.5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14.6% over that stretch · deepest drop along the way 15.5%, back to its old high 15 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $3.5300 | |
| 2025 | $4.5900 | -2.8% |
| 2024 | $4.7200 | +6.1% |
| 2023 | $4.4500 | +13.6% |
| 2022 | $3.9164 | +12.0% |
| 2021 | $3.4973 | -10.8% |
| 2020 | $3.9217 | -10.7% |
| 2019 | $4.3916 | -2.3% |
| 2018 | $4.4949 | +0.6% |
| 2017 | $4.4695 | -2.0% |
| 2016 | $4.5614 | -4.1% |
| 2015 | $4.7562 | -6.7% |
| 2014 | $5.0968 | -10.0% |
| 2013 | $5.6659 | -8.0% |
| 2012 | $6.1601 | -8.3% |
| 2011 | $6.7194 | -9.8% |
| 2010 | $7.4506 | -10.5% |
| 2009 | $8.3284 | +8.7% |
| 2008 | $7.6589 |
Living on HYG: its income record, cuts, and how much a $1,000 monthly income takes →
What's inside
As of Aug 31, 2026, the fund held 1,322 securities; the ten largest made up 3.58% of assets, and 14.52% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| 1261229 BC LTD Bonds and notes | 0.50% | |
| MERIDIAN ARC HOLDCO LLC Bonds and notes | 0.45% | |
| ECHOSTAR CORP Bonds and notes | 0.43% | |
| PR RNO PROPERTY OWNER 1 Bonds and notes | 0.34% | |
| QUIKRETE HOLDINGS INC Bonds and notes | 0.32% | |
| CLOUD SOFTWARE GRP LLC Bonds and notes | 0.32% | |
| CLOUD SOFTWARE GRP LLC Bonds and notes | 0.32% | |
| GALAXY HELIOS DATA CNTR Bonds and notes | 0.30% | |
| ASURION LLC/ASURION CO Bonds and notes | 0.29% | |
| HUB INTERNATIONAL LTD Bonds and notes | 0.29% | |
| CRC INSURANCE GROUP LLC Bonds and notes | 0.29% | |
| WULF COMPUTE LLC Bonds and notes | 0.28% | |
| SV RNO PROPERTY OWNER 1 Bonds and notes | 0.28% | |
| NEXSTAR MEDIA INC Bonds and notes | 0.28% | |
| CORE SCIENTIFIC FINANCE Bonds and notes | 0.28% |
By country
United States 82.19%Canada 3.76%United Kingdom 1.65%XX 1.38%Bermuda 1.08%By issuer
Companies 93.87%Other 2.99%The bonds mature in 5.4 years on average (weighted by size), with an average coupon of 6.64%.
Source: N-PORT holdings report as of Aug 31, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Aug 31, 2026, investors added a net $183.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.17%, -0.34%, +0.98%.
How it works
HYG, run by BlackRock, follows an index built by S&P Dow Jones Indices. The index starts from the wider iBoxx USD Corporate Bond Index and keeps only US dollar bonds whose average rating from Fitch, Moody's and S&P is below investment grade. Each issuer must be based in a developed market and have at least $1 billion of bonds outstanding. Each bond needs at least $400 million outstanding, an original maturity under 15 years and at least one year left to run. New additions need at least 18 months left. These size limits steer the index toward bonds that are easier to trade.
The index is weighted by market value: bigger bond issues count for more. However, no single issuer can exceed 3%. As of August 31, 2026, the fund held 1,322 issues, and its ten largest positions made up just 3.58% of assets. The largest were 1261229 BC Ltd (0.50%), Meridian Arc Holdco (0.45%) and EchoStar (0.43%). The average maturity was 5.4 years and the average coupon (the bond's fixed interest rate) was 6.64%.
The fund uses "representative sampling": it owns a sample of bonds that resembles the index rather than every bond in it. At least 80% of assets must be in index bonds. Up to 10% can go into futures, options, swaps or other bonds. The fund does not take defensive steps when markets fall. It may lend out up to one-third of its assets. Portfolio turnover was 22%.
What it really costs
- HYG charges 0.49% a year, versus an average of 0.29% for the similar funds below (7th of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $50 in the first year and $616 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| HYG | $50 | $157 | $274 | $616 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
Monthly payouts and a 6.05% trailing yield are the main draw, but its sharp falls in crises make it a higher-risk source of income rather than a safe anchor.
HYG's trailing 12-month yield was 6.05% ($4.69 per share) as of October 29, 2026, paid monthly. The tradeoff is credit risk, meaning the chance that weaker companies can't pay their debts. That risk showed in past downturns. HYG fell 34.2% in the 2008 crisis and took about 12 months to recover. It dropped 22% in the 2020 COVID crash (7.5 months to recover) and 15.5% in 2022 (15 months to recover). Its worst calendar year was 2008, at -17.6%. Anyone drawing cash from it in a year like that would be cashing out at low prices. Cost is a drag, too: in the SEC's standard $10,000 example, expenses add up to $616 over 10 years, and similar funds charge much less. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors seeking monthly income from about 1,300 below-investment-grade corporate bonds, with a 6.05% trailing yield as of October 29, 2026.
- Those who prefer a large, long-running fund: launched in April 2007, with $16.2 billion in net assets as of August 31, 2026.
- Investors wanting wide spread across issuers: the top ten holdings were just 3.58% of assets, and the index caps any issuer at 3%.
Look elsewhere if
- Cost-focused investors: the 0.49% expense ratio compares with 0.08% for USHY and 0.05% for SPHY, which hold similar bonds.
- Anyone who needs steady account values: HYG fell 34.2% in 2008, 22% in early 2020 and 15.5% in 2022.
- Investors wanting protection during stock crashes, since junk bonds tend to fall when the economy weakens. Its worst quarter was -11.9% in early 2020.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| HYG this fund | 5.4 yrs | 0.49% | $16.19B | +0.9% | +7.4% |
| USHY iShares Broad USD High Yield Corporate Bond… | 5.4 yrs | 0.08% | $28.59B | +1.2% | +7.7% |
| SPHY SPDR Portfolio High Yield Bond ETF | 5.4 yrs | 0.05% | $11.33B | +1.8% | +8.9% |
| FLHY Franklin High Yield Corporate ETF | 5.4 yrs | 0.4% | $1.18B | +2.4% | +9.2% |
| BBHY JPMorgan BetaBuilders USD High Yield Corpor… | 5.3 yrs | 0.07% | $622.6M | +1.5% | +8.6% |
| HYXF iShares ESG Advanced High Yield Corporate B… | 5.5 yrs | 0.35% | $194.4M | +0.9% | +8.8% |
| SRLN SPDR Blackstone Senior Loan ETF | 5.2 yrs | 0.7% | $5.21B | +3.7% | +7.0% |
| JNK SPDR Bloomberg High Yield Bond ETF | 5.8 yrs | 0.4% | $7.35B | +1.6% | +8.7% |
Questions investors ask
Does HYG pay monthly dividends?
Yes. HYG pays distributions monthly, funded mainly by interest from its bonds. Over the 12 months to October 29, 2026, it paid $4.69 per share, a trailing yield of 6.05%. The amount isn't fixed. Income can drop if interest rates fall, if companies repay ("call") their bonds early, or if the fund has to reinvest in lower-yielding bonds as older ones mature.
What's the difference between HYG and USHY?
The biggest difference is cost. Both are iShares high-yield corporate bond ETFs with a 5.4-year average maturity, but USHY charges 0.08% a year versus HYG's 0.49%. As its name suggests, USHY targets a broader slice of the market. HYG's index screens for larger, easier-to-trade bonds. USHY returned 2.0% over one year and 8.9% a year over three years, versus HYG's 1.6% and 8.6%, as of October 29, 2026.
Is HYG good for retirement income?
It can provide income, but it carries more risk than most bond funds. HYG yielded 6.05% over the 12 months to October 29, 2026, and pays monthly. However, it fell 34.2% during the 2008 crisis and 22% in the 2020 COVID crash. A retiree who needed cash during those drops would have withdrawn at low prices. It may suit investors who treat it as one part of a broader mix.
Can HYG lose money?
Yes, and sometimes a lot. Its deepest drop was 34.3%, from September 2007 to November 2008, and it didn't fully recover until December 2009. In 2022, the fund returned -11.37% as rising rates and credit worries hit bond prices. Its worst quarter was -11.9%, in early 2020. Junk bonds carry a higher risk of default than investment-grade bonds.
What is HYG's expense ratio?
HYG's expense ratio is 0.49% a year, according to its June 2026 prospectus. In the SEC's standard example, a $10,000 investment earning 5% a year would cost about $50 in the first year and $616 over 10 years. That ranks 7th of 8 among similar funds, which average 0.29%. Over the 10 years to December 31, 2025, HYG returned 5.51% a year, versus 6.01% for its index.