HYG

iShares iBoxx $ High Yield Corporate Bond ETF

TREND FOLLOWING PERFORMANCE HISTORY

2026-09-11

Executive Summary

The quantitative backtest for HYG (iShares iBoxx $ High Yield Corporate Bond ETF) using the Excess Return MMA* strategy in a Investing context demonstrated its primary role in risk mitigation, experiencing a maximum drawdown of -14.7% (compared to the benchmark's drawdown of -22.0%). Over the evaluated period, this protective approach generated a Compound Annual Growth Rate (CAGR) of 4.3%, compared to a Buy-and-Hold benchmark return of 6.8%. The strategy executed 43 total trades.

* Excess Return MMA: Multi-Moving Average (Triple-Band) model utilizing sophisticated long/short cross durations optimized against volatility.

📊 Strategy Model 4 Models Available

Compare quantitative moving average overlays for HYG:

Excess Return MMA Active Model

Advanced Ensemble: Uses multiple signal layers for maximum trend stability and noise reduction.

Excess Return MMA CA

Advanced Dynamic Sleeve: MMA ensemble signals on the primary asset combined with a momentum-based cash alternative ETF rotation.

Excess Return SMA

Standard Signal: Classical quantitative trend following optimized for reliable directionality.

Moving Average (50/200)

Moving Average: The baseline 50/200-day crossover model used by technical analysts worldwide.

🎯 Trading Horizon

Select risk profile & execution style for HYG:

🛡️ Long-Term Investing Active Horizon

Ideal for wealth preservation and multi-year horizons. Optimized for low turnover and tax efficiency.

⚔️ Tactical Trading

Ideal for active capital rotation and momentum-first accounts. Optimized for high sensitivity to price shifts.

🛡️ HYG Drawdown Shield & Downside Protection

Why Drawdown Dictates Longevity →

Peak Drawdown Defense

-14.7% (vs -22.0% B&H)

+7.4% shallower drawdown

Drawdown Shield

7.4% Cut

Protected capital vs -22.0% B&H

Capital Sheltered from Risk

22.8% of Time

Earning Treasury yield during downturns

* Drawdown Shield demonstrates how systematic trend-following bounded historical drawdowns and protected principal capital compared to passive Buy & Hold.

📊 HYG Quality Metrics & KPI Summary

Metric	1Y		5Y		10Y		Full
	Strategy	B&H	Strategy	B&H	Strategy	B&H	Strategy	B&H
Max Drawdown	-2.34%	-2.34%	-7.19%	-15.79%	-7.56%	-22.03%	-14.65%	-22.03%
Sharpe Ratio	0.88	0.75	0.73	0.45	0.79	0.54	0.75	0.78
Sortino Ratio	1.29	1.14	0.93	0.61	0.92	0.64	0.84	0.94
CAGR	3.16%	2.89%	2.85%	3.42%	3.94%	4.50%	4.34%	6.85%
% Time Invested	90.3%	100.0%	65.1%	100.0%	76.6%	100.0%	77.2%	100.0%
Trades / Year	0.0	0.0	2.0	0.0	1.9	0.0	2.5	0.0

Cumulative Growth Performance

Hydrating Performance Trajectory... Loading historical performance data

Figure 1: Cumulative Trajectory Analysis. Logarithmic growth comparison of HYG under the Excess Return MMA strategy (Investing) versus Buy & Hold. The strategy produced a 4.3% CAGR with a -14.7% Max Drawdown across 43 trade signals (compared to Buy & Hold's 6.8% CAGR and -22.0% Max Drawdown).

Histogram of monthly return distribution for HYG under Excess Return MMA strategy in Investing context, illustrating downside risk mitigation and return skewness. — **Figure 2: Monthly Return Distribution Profile.** Monthly return distribution for **HYG** under **Excess Return MMA** (Investing). Visualizes return frequency, volatility clustering, and tail-risk truncation relative to standard buy-and-hold returns.

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Top Diversifiers for HYG

Explore Correlation Across Horizons →

Top 5 non-correlated asset sleeves evaluated on 1Y daily percentage returns (Pearson r). Compare them side-by-side in Compare Studio to analyze portfolio diversification.

Diversifier Asset	Category	1Y Correlation (r)	Action
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Trade History

This log shows every signal-driven transition. Completed trades reflect standard market cycles. An Open or Mark-to-Market exit denotes an active position (either in the primary asset or a cash/yield sleeve) valued at the current price for reporting purposes. Interest entries record yield accrued from cash or cash alternatives (like BIL) during out-of-market defensive periods.

Entry Date	Exit Date	Type	Allocation	Entry Price	Exit Price	Net Return %	Exit Reason
🔒 Active Positions & Recent Execution Signals Hidden Trading on delayed data carries high execution risk. Current allocations, pending next-day rebalances, and active execution signals (last 60 days) require a Premium subscription. Subscribe to Unlock
2026-05-04	2026-07-08	Interest (CASH)	33.33%	$1.00	$1.01	0.65%	Interest Income
2025-07-14	2026-05-04	Completed	33.33%	$74.68	$78.43	4.97%	Signal
2025-04-16	2025-07-14	Interest (CASH)	33.33%	$1.00	$1.01	1.01%	Interest Income
2024-07-22	2025-04-16	Completed	33.33%	$68.84	$71.16	3.31%	Signal
2024-06-18	2024-07-22	Interest (CASH)	33.33%	$1.00	$1.00	0.47%	Interest Income
2024-01-02	2024-06-18	Completed	33.33%	$65.86	$67.63	2.64%	Signal
2022-07-12	2024-03-11	Interest (CASH)	33.33%	$1.00	$1.08	8.07%	Interest Income
2023-10-10	2024-01-02	Interest (CASH)	33.33%	$1.00	$1.01	1.22%	Interest Income
2023-10-12	2023-12-22	Interest (CASH)	33.33%	$1.00	$1.01	1.07%	Interest Income
2023-04-26	2023-10-12	Completed	33.33%	$61.33	$61.56	0.32%	Signal
2023-08-03	2023-10-10	Completed	33.33%	$61.82	$61.45	-0.65%	Signal
2023-07-12	2023-08-03	Interest (CASH)	33.33%	$1.00	$1.00	0.34%	Interest Income
2023-07-05	2023-07-12	Completed	33.33%	$61.78	$62.25	0.71%	Signal
2023-05-12	2023-07-05	Interest (CASH)	33.33%	$1.00	$1.01	0.73%	Interest Income
2023-01-26	2023-05-12	Completed	33.33%	$61.44	$61.29	-0.30%	Signal
2022-03-09	2023-04-26	Interest (CASH)	33.33%	$1.00	$1.04	3.54%	Interest Income
2021-12-31	2023-01-26	Interest (CASH)	33.33%	$1.00	$1.02	2.38%	Interest Income
2022-07-08	2022-07-12	Completed	33.33%	$58.39	$58.39	-0.05%	Signal
2022-06-14	2022-07-08	Interest (CASH)	33.33%	$1.00	$1.00	0.11%	Interest Income
2022-04-06	2022-06-14	Completed	33.33%	$62.62	$57.26	-8.59%	Stop
2022-03-15	2022-04-06	Interest (CASH)	33.33%	$1.00	$1.00	0.03%	Interest Income
2020-04-01	2022-03-15	Completed	33.33%	$53.21	$61.74	15.97%	Stop
2020-06-03	2022-03-09	Completed	33.33%	$59.88	$63.19	5.48%	Signal
2020-06-03	2021-12-31	Completed	33.33%	$59.88	$66.59	11.16%	Signal
2020-04-17	2020-06-03	Interest (CASH)	33.33%	$1.00	$1.00	0.02%	Interest Income
2020-03-10	2020-06-03	Interest (CASH)	33.33%	$1.00	$1.00	0.03%	Interest Income
2020-04-01	2020-04-17	Completed	33.33%	$53.21	$57.56	8.11%	Signal
2020-03-10	2020-04-01	Interest (CASH)	33.33%	$1.00	$1.00	0.01%	Interest Income
2020-03-10	2020-04-01	Interest (CASH)	33.33%	$1.00	$1.00	0.01%	Interest Income
2019-04-23	2020-03-10	Completed	33.33%	$58.27	$58.18	-0.20%	Stop
2019-04-22	2020-03-10	Completed	33.33%	$58.26	$58.18	-0.18%	Stop
2019-03-15	2020-03-10	Completed	33.33%	$57.43	$58.18	1.27%	Stop
2018-12-26	2019-04-23	Interest (CASH)	33.33%	$1.00	$1.01	0.77%	Interest Income
2019-01-30	2019-04-22	Interest (CASH)	33.33%	$1.00	$1.01	0.54%	Interest Income
2018-12-03	2019-03-15	Interest (CASH)	33.33%	$1.00	$1.01	0.66%	Interest Income
2018-08-08	2019-01-30	Completed	33.33%	$55.86	$55.97	0.15%	Signal
2016-06-24	2018-12-26	Completed	33.33%	$48.18	$52.91	9.76%	Signal
2018-04-18	2018-12-03	Completed	33.33%	$55.13	$55.25	0.15%	Signal
2018-04-16	2018-08-08	Interest (CASH)	33.33%	$1.00	$1.01	0.61%	Interest Income
2018-02-09	2018-04-18	Interest (CASH)	33.33%	$1.00	$1.00	0.31%	Interest Income
2016-06-24	2018-04-16	Completed	33.33%	$48.18	$55.05	14.21%	Signal
2016-04-29	2018-02-09	Completed	33.33%	$48.10	$53.91	12.03%	Signal
2015-10-29	2016-06-24	Interest (CASH)	33.33%	$1.00	$1.00	0.16%	Interest Income
2015-09-29	2016-06-24	Interest (CASH)	33.33%	$1.00	$1.00	0.16%	Interest Income
2015-08-03	2016-04-29	Interest (CASH)	33.33%	$1.00	$1.00	0.13%	Interest Income
2015-09-17	2015-10-29	Completed	33.33%	$47.80	$47.71	-0.22%	Signal
2015-06-03	2015-09-29	Completed	33.33%	$49.56	$45.96	-7.31%	Stop
2015-08-25	2015-09-17	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2015-01-12	2015-08-25	Completed	33.33%	$48.38	$47.33	-2.21%	Stop
2015-03-25	2015-08-03	Completed	33.33%	$49.08	$48.46	-1.31%	Signal
2014-12-17	2015-06-03	Interest (CASH)	33.33%	$1.00	$1.00	0.01%	Interest Income
2014-10-13	2015-03-25	Interest (CASH)	33.33%	$1.00	$1.00	0.01%	Interest Income
2014-12-17	2015-01-12	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2013-07-18	2014-12-17	Completed	33.33%	$46.10	$46.46	0.72%	Stop
2013-07-18	2014-12-17	Completed	33.33%	$46.10	$46.46	0.72%	Stop
2013-10-30	2014-10-13	Completed	33.33%	$46.93	$47.94	2.10%	Signal
2013-08-14	2013-10-30	Interest (CASH)	33.33%	$1.00	$1.00	0.01%	Interest Income
2013-07-18	2013-08-14	Completed	33.33%	$46.10	$45.30	-1.78%	Signal
2013-06-25	2013-07-18	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2013-06-25	2013-07-18	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2013-06-25	2013-07-18	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2011-12-19	2013-06-25	Completed	33.33%	$39.09	$43.90	12.25%	Stop
2011-12-07	2013-06-25	Completed	33.33%	$39.11	$43.90	12.20%	Stop
2011-12-07	2013-06-25	Completed	33.33%	$39.11	$43.90	12.20%	Stop
2011-11-25	2011-12-19	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2011-11-08	2011-12-07	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2011-08-08	2011-12-07	Interest (CASH)	33.33%	$1.00	$1.00	0.01%	Interest Income
2011-10-27	2011-11-25	Completed	33.33%	$40.02	$36.82	-8.04%	Stop
2011-10-27	2011-11-08	Completed	33.33%	$40.02	$39.38	-1.66%	Signal
2011-10-05	2011-10-27	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2011-10-05	2011-10-27	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2011-08-30	2011-10-05	Completed	33.33%	$37.71	$35.92	-4.80%	Stop
2011-08-30	2011-10-05	Completed	33.33%	$37.71	$35.92	-4.80%	Stop
2011-08-08	2011-08-30	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2011-08-08	2011-08-30	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income
2010-06-01	2011-08-08	Completed	33.33%	$33.23	$36.52	9.85%	Stop
2010-06-01	2011-08-08	Completed	33.33%	$33.23	$36.52	9.85%	Stop
2010-06-01	2011-08-08	Completed	33.33%	$33.23	$36.52	9.85%	Stop
2010-05-07	2010-06-01	Interest (CASH)	33.33%	$1.00	$1.00	0.01%	Interest Income
2010-05-07	2010-06-01	Interest (CASH)	33.33%	$1.00	$1.00	0.01%	Interest Income
2010-05-07	2010-06-01	Interest (CASH)	33.33%	$1.00	$1.00	0.01%	Interest Income
2009-06-15	2010-05-07	Completed	33.33%	$28.81	$33.30	15.52%	Stop
2009-06-15	2010-05-07	Completed	33.33%	$28.81	$33.30	15.52%	Stop
2009-04-03	2010-05-07	Completed	33.33%	$24.79	$33.30	34.26%	Stop
2009-04-01	2009-06-15	Interest (CASH)	33.33%	$1.00	$1.00	0.03%	Interest Income
2009-04-01	2009-06-15	Interest (CASH)	33.33%	$1.00	$1.00	0.03%	Interest Income
2009-04-01	2009-04-03	Interest (CASH)	33.33%	$1.00	$1.00	0.00%	Interest Income

Next Steps: Portfolio Integration & Comparative Analysis

Single-ticker trend following is designed to truncate tail risk inside a broader portfolio. View where HYG ranks across 40+ tracked assets, evaluate correlation against non-correlated diversifiers, or model it inside a custom all-weather asset mix.

📊 View Full 40-Asset Backtest Matrix → 🛠️ Build Custom Portfolio with HYG → ⚖️ Compare HYG vs Non-Correlated Assets →

HYG