⚖️ HYG vs JNK Comparison · Free & No Signup

HYG vs JNK: The Two Giants of High-Yield Bond ETFs

Both HYG and JNK invest in "junk bonds" — corporate debt from companies with below-investment-grade credit ratings. High yield, higher risk. Here's how they compare.

💰 JNK is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict
🤝 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 as of Jul 14, 2026 · Educational only, not financial advice
HYG
iShares iBoxx $ High Yield Corporate Bond ETF
Expense Ratio
0.48%
1-Year Return
-0.5%
AUM
$17.6B
Holdings
1,200
JNK
State Street SPDR Bloomberg High Yield Bond ETF
Expense Ratio
0.40% ✓
1-Year Return
-0.6%
AUM
$7.3B
Holdings
900

📋 HYG vs JNK — Key Facts Side by Side

Metric HYG JNK
Fund Name iShares iBoxx $ High Yield Corporate Bond ETF State Street 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 $17.6B $7.3B
Holdings 1,200 900
Inception 2007 2007
1-Year Return -0.47% -0.62%
3-Year Return +8.84% +8.94%
5-Year Return +3.64% +3.54%
Dividend Yield 5.90% 6.60%
Holdings Overlap See holdings overlap →
Avg Bid-Ask Spread 0.01% 0.02%

Expense ratio, AUM, and returns updated Jul 14, 2026 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.

🎯 Which Fund Fits Which Investor?

Often fits investors who...
HYG
  • want income and stability with lower portfolio volatility
  • already use iShares and prefer staying within one fund family
Often fits investors who...
JNK
  • want the lowest fees: saves ~$8/yr per $10K vs HYG
  • want income and stability with lower portfolio volatility

💰 What the Fee Difference Actually Costs

Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.

Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.

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❓ HYG vs JNK — Frequently Asked Questions

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.
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.
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.
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.
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 →

📄 HYG & JNK Fact Sheets

HYG Fact Sheet JNK Fact Sheet
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.