🤝 BFF Take
JNK Edges Ahead on Cost — But Both Are High-Risk, High-Yield Bets
HYG (iShares iBoxx $ High Yield Corporate Bond ETF) and JNK (SPDR Bloomberg High Yield Bond ETF) are both high-yield corporate bond funds — what the industry calls "junk bonds." These bonds offer higher yields because the issuing companies have below-investment-grade credit ratings and a higher chance of default. HYG holds about 1,200 bonds at 0.48%; JNK holds about 900 bonds at 0.40%. JNK's lower expense ratio gives it a small structural advantage. Both ETFs have similar credit quality (BB/B rated), similar duration (around 3-4 years), and will sell off sharply during recessions when default rates rise. Neither is appropriate as a core bond holding — they behave more like equities during stress events.
📋 Quick Takeaways
⚠️Both invest in below-investment-grade "junk bonds" — higher yields come with meaningful default and price risk
💰JNK costs 0.40% vs HYG's 0.48% — 8 basis points cheaper annually
📊HYG holds ~1,200 bonds (more diversified); JNK holds ~900 — similar credit quality profiles
📊 Data-Based Take: JNK has the lower fee
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
✓
Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
HYG
iShares iBoxx $ High Yield Corporate Bond ETF
JNK
SPDR Bloomberg High Yield Bond ETF
📋 HYG vs JNK — Key Facts Side by Side
| Metric |
HYG |
JNK |
| Fund Name |
iShares iBoxx $ High Yield Corporate Bond ETF |
SPDR Bloomberg High Yield Bond ETF |
| Issuer |
iShares |
State Street |
| Tracks Index |
iBoxx USD Liquid High Yield |
Bloomberg High Yield Very Liquid |
| Expense Ratio |
0.48% |
0.40% ✓ |
| Cost per $10K/yr |
$48.00 |
$40.00 |
| AUM |
$18B |
$9B |
| Holdings |
1,200 |
900 |
| Inception |
2007 |
2007 |
| 1-Year Return |
+9.80% |
+9.60% |
| 3-Year Return |
+4.20% |
+4.10% |
| 5-Year Return |
+5.10% |
+5.00% |
| Avg Bid-Ask Spread |
0.01% |
0.02% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 HYG vs JNK — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy HYG or JNK?
Choose if...
HYG
- You want income and stability with lower portfolio volatility
- You already use iShares and prefer staying within their fund family
Choose if...
JNK
- You want the lowest fees — saves ~$8/yr per $10K vs HYG
- You want income and stability with lower portfolio volatility
📧 Free Weekly Newsletter
Bond ETFs without the fixed-income jargon
Duration, yield curves, credit risk — one clear concept per week, free forever.
✅ You're in! Check your inbox for your first issue.
❓ HYG vs JNK — Frequently Asked Questions
What is the difference between HYG and JNK?
HYG and JNK are both high-yield corporate bond ETFs that invest in below-investment-grade (BB or lower) corporate bonds. HYG tracks the iBoxx USD Liquid High Yield index (~1,200 bonds) while JNK tracks the Bloomberg High Yield Very Liquid index (~900 bonds). JNK charges 0.40% vs HYG's 0.48%. Both have similar credit quality and duration profiles. JNK's lower expense ratio gives it a slight structural advantage over time.
Are HYG and JNK risky investments?
Yes, meaningfully so. High-yield bonds carry credit risk (the issuing companies may default) and interest rate risk. During recessions, high-yield bond ETFs often sell off sharply — HYG and JNK both fell 20%+ during March 2020 and lost significant value in 2022. Their correlation with equities is much higher than investment-grade bonds, especially during stress periods. They are better thought of as equity-risk assets than pure bond holdings.
What yield do HYG and JNK pay?
Yields fluctuate with interest rates and credit spreads. In a typical environment, HYG and JNK yield 6-9% annually — considerably more than investment-grade bonds. Both distribute monthly income. The higher yield is compensation for taking on default risk; in a severe recession, the actual realized return can be much lower if defaults spike and prices fall.
When should I use HYG or JNK in a portfolio?
High-yield bond ETFs can serve as a middle-ground between stocks and investment-grade bonds — providing income higher than Treasuries with less volatility than equities in stable environments. However, their behavior during recessions makes them inappropriate as a safe-haven allocation. They tend to work best in a portfolio for investors seeking income who accept that these bonds will fall with stocks during downturns.
Is there a better alternative to HYG and JNK?
USHY (iShares Broad USD High Yield Corporate Bond ETF, 0.15%) and FALN (iShares Fallen Angels USD Bond ETF) are worth comparing. USHY offers similar high-yield exposure at a significantly lower expense ratio (0.15% vs 0.40-0.48%). For truly low-cost high-yield exposure, USHY is worth serious consideration over HYG or JNK.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.