AGG vs HYG: Correlation
Measured on weekly returns over the past three years, iShares Core US Aggregate Bond ETF (AGG) and iShares iBoxx High Yield Corporate Bond ETF (HYG) carry a correlation of 0.63, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and HYG?
On 3 years of weekly data the AGG/HYG correlation comes out at 0.63, strong. Little has changed lately, as the 1-year reading of 0.68 lands near the 3-year figure. The 5-year figure is 0.58, and annualized covariance runs at 15.8 %².
Within AGG's tracked universe of 34 assets, HYG comes in at #17 by 3-year correlation. Twelve-month performance is nearly a tie, at +2.3% for AGG and +4.6% for HYG. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from 0.21 to 0.83.
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.
AGG vs HYG: side by side
| AGG (iShares Core US Aggregate Bond ETF) | HYG (iShares iBoxx High Yield Corporate Bond ETF) | |
|---|---|---|
| 1-year return | +2.3% | +4.6% |
| 5-year return | -1.1% | +19.9% |
| Volatility (ann.) | 5.3% | 4.7% |
| Beta vs S&P 500 | 0.07 | 0.22 |
| Max drawdown (3Y) | -4.8% | -4.6% |
| Dividend yield | 4.05% | 5.94% |
| Expense ratio | 0.03% | 0.49% |
| Assets under management | $137.1B | $17.1B |
| Sector / category | ETF · Bonds | ETF · Bonds |
AGG, iShares's Intermediate Core Bond fund, carries $137.1B under management, a 0.03% expense ratio, a 4.05% 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 | AGG | HYG |
|---|---|---|
| 2022 | -13.0% | -11.0% |
| 2023 | +5.7% | +11.5% |
| 2024 | +1.3% | +8.0% |
| 2025 | +7.2% | +8.6% |
| 2026 | +0.3% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and HYG good diversifiers for each other?
Only partially. A correlation of 0.63 means AGG and HYG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between AGG and HYG?
As of 2026-08-27, the correlation of weekly returns between AGG and HYG is 0.63 over 3 years, 0.68 over 1 year and 0.58 over 5 years.
Is HYG a good diversifier for AGG?
Only partially. A correlation of 0.63 means AGG and HYG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.63 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/agg-vs-hyg.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/agg-vs-hyg/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AGG correlations · HYG correlations
