BND vs HYG: Correlation
Measured on weekly returns over the past three years, Vanguard Total Bond Market ETF (BND) 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 BND and HYG?
On 3 years of weekly data the BND/HYG correlation comes out at 0.63, strong. The relationship has been stable: the 1-year correlation (0.67) sits close to the 3-year figure. The 5-year figure is 0.59, and annualized covariance runs at 15.5 %².
Within BND's tracked universe of 33 assets, HYG comes in at #17 by 3-year correlation. Neither side won the trailing year by much: +2.3% against +4.6%. This link changes with the market regime, having swung between 0.21 and 0.83 on a rolling one-year basis.
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.
BND vs HYG: side by side
| BND (Vanguard Total Bond Market ETF) | HYG (iShares iBoxx High Yield Corporate Bond ETF) | |
|---|---|---|
| 1-year return | +2.3% | +4.6% |
| 5-year return | -1.3% | +19.9% |
| Volatility (ann.) | 5.2% | 4.7% |
| Beta vs S&P 500 | 0.06 | 0.22 |
| Max drawdown (3Y) | -4.7% | -4.6% |
| Dividend yield | – | 5.94% |
| Expense ratio | – | 0.49% |
| Assets under management | – | $17.1B |
| Sector / category | ETF · Bonds | ETF · Bonds |
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 | BND | HYG |
|---|---|---|
| 2022 | -13.1% | -11.0% |
| 2023 | +5.7% | +11.5% |
| 2024 | +1.4% | +8.0% |
| 2025 | +7.1% | +8.6% |
| 2026 | +0.2% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BND and HYG good diversifiers for each other?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BND and HYG?
The BND/HYG correlation stands at 0.63 on a 3-year window (1 year: 0.67, 5 years: 0.59), computed from weekly returns as of 2026-08-27.
Is HYG a good diversifier for BND?
Somewhat, no more. With 0.63 correlation, most large moves hit both names, and the diversification benefit stays modest.
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/bnd-vs-hyg.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bnd-vs-hyg/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: BND correlations · HYG correlations
