ACWI vs HYG: Correlation
Measured on weekly returns over the past three years, iShares MSCI ACWI ETF (ACWI) and iShares iBoxx High Yield Corporate Bond ETF (HYG) carry a correlation of 0.74, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are ACWI and HYG?
On 3 years of weekly data the ACWI/HYG correlation comes out at 0.74, strong. Little has changed lately, as the 1-year reading of 0.81 lands near the 3-year figure. The 5-year figure is 0.77, and annualized covariance runs at 47.7 %².
By 3-year correlation, HYG places #54 of the 119 assets tracked against ACWI. The last year tells two different stories: ACWI led by 18.1 percentage points, +22.7% for ACWI against +4.6% for HYG. The link looks structural: the rolling one-year correlation barely moved, holding between 0.63 and 0.86. One caveat on sizing: ACWI is 2.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
ACWI vs HYG: side by side
| ACWI (iShares MSCI ACWI ETF) | HYG (iShares iBoxx High Yield Corporate Bond ETF) | |
|---|---|---|
| 1-year return | +22.7% | +4.6% |
| 5-year return | +69.0% | +19.9% |
| Volatility (ann.) | 13.8% | 4.7% |
| Beta vs S&P 500 | 0.92 | 0.22 |
| Max drawdown (3Y) | -16.5% | -4.6% |
| Dividend yield | 1.44% | 5.94% |
| Expense ratio | 0.32% | 0.49% |
| Assets under management | $32.5B | $17.1B |
| Sector / category | ETF · Global | ETF · Bonds |
ACWI, iShares's Global Large-Stock Blend fund, carries $32.5B under management, 1590 holdings, a 0.32% expense ratio, a 1.44% trailing dividend yield. HYG is a High Yield Bond fund from iShares: $17.1B under management, a 0.49% expense ratio, a 5.94% trailing dividend yield.
Year-by-year returns
| Year | ACWI | HYG |
|---|---|---|
| 2022 | -18.4% | -11.0% |
| 2023 | +22.3% | +11.5% |
| 2024 | +17.4% | +8.0% |
| 2025 | +22.4% | +8.6% |
| 2026 | +14.9% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are ACWI and HYG good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between ACWI and HYG?
The ACWI/HYG correlation stands at 0.74 on a 3-year window (1 year: 0.81, 5 years: 0.77), computed from weekly returns as of 2026-08-27.
Is HYG a good diversifier for ACWI?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.74 mean?
A reading of 0.74 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/acwi-vs-hyg.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/acwi-vs-hyg/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: ACWI correlations · HYG correlations
