HYI vs IHYF
Western Asset High Yield Defined Opportunity Fund Inc. vs Invesco High Yield Bond Factor ETF
Which is better, HYI or IHYF?
IHYF has been ahead.
IHYF has a lower expense ratio. IHYF led over 1Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | HYI | IHYF |
|---|---|---|
| Expense Ratio | 0.96% | 0.39%Best |
| AUM | $140M | $134M |
| Dividend Yield | 10.36% | 6.50% |
| Holdings | 258 | 432 |
| Volatility (annualized) | 10.3% | 6.9%Best |
| Max Drawdown | -26.4%Best | -36.0% |
| $10,000 over 5.2 years | $11,715 | $12,361Best |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) |
| Category | Fixed Income | Fixed Income |
| Style | High Yield Bond | High Yield Bond |
| Inception | Oct 27, 2010 | Nov 30, 2020 |
Not shown on this pair: YTD Return, 1Y Return, 3Y Return (annualized), 5Y Return (annualized), Top 10 Weight.
The two price series end 236 days apart, so a return over any period would be measuring two different stretches of market. Those rows are withheld. HYI has data through Oct 14, 2026 and IHYF through Feb 20, 2026.
Volatility and max drawdown, and the $10,000 over 5.2 years row, are measured over the window both funds cover: Dec 3, 2020 to Feb 20, 2026 (5.2 years).
Risk: Volatility and Drawdowns
HYI has been the more volatile fund, with annualized monthly volatility of 10.3% compared with 6.9% for IHYF. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -26.4% for HYI and -36.0% for IHYF. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.74. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
HYI charges 0.96% per year while IHYF charges 0.39%. On a $10,000 position that is $96 vs $39 annually, a gap of $57 per year that compounds over a long holding period. On income, HYI currently yields 10.36% against 6.50% for IHYF.
Holdings Overlap
We hold position weights for 18 holdings in HYI and 396 in IHYF, totalling 3.5% and 96.3% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
The two holdings books were reported 335 days apart, HYI as of Aug 31, 2026 and IHYF as of Sep 30, 2025, so some of the difference between them is the time between the two reports rather than the funds.
0 positions in common, counted across the 18 positions we hold weights for in HYI and 396 in IHYF, against full books of 258 and 432.
You are not choosing between two funds in isolation.
Whichever of HYI and IHYF you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, HYI or IHYF?
HYI has an expense ratio of 0.96% while IHYF charges 0.39%. IHYF is the cheaper option, by $57 a year on a $10,000 investment.
Which is riskier, HYI or IHYF?
HYI has been the more volatile fund at 10.3% annualized versus 6.9% for IHYF. Worst drawdown: HYI -26.4% vs IHYF -36.0%.
Should I hold both HYI and IHYF?
HYI and IHYF have a monthly-return correlation of 0.74, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, HYI or IHYF?
HYI yields 10.36% while IHYF yields 6.50%, so HYI currently pays the higher dividend yield.
Is IHYF better than HYI?
IHYF has a lower expense ratio. IHYF led over 1Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.