# JNK alternatives: 4 similar ETFs compared

> ETFs similar to JNK, closest first, with each fund's fee, what it tracks, and returns and worst drops on the same dates as JNK. Updated daily.

The ETFs most like JNK are USHY, HYG and VCIT. USHY and HYG hold bonds from US companies with weaker credit, which pay more interest and carry more risk, like JNK. USHY costs less: 0.08% a year against 0.4%.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- 4 funds can stand in for JNK: 2 of the same kind and 2 related funds.
- JNK charges 0.4% a year (about $40 on $10,000). The cheapest alternative here, VCIT, charges 0.03%.
- USHY moved most like JNK: a daily correlation of 0.99 over about the last five years.
- Returns and drops for each pair use the same dates for both funds.

## JNK alternatives at a glance

Each fund below can stand in for JNK, closest first. "Same kind" funds hold the same kind of bonds through a different index. "Related" funds make a different bet that often moves the same way.

| ETF | How close | Yearly fee | Fee on $10,000 | Tracks |
| --- | --- | --- | --- | --- |
| **JNK** | This fund | 0.4% | $40 | Bloomberg High Yield Very Liquid Index |
| [USHY](https://tactfolio.com/etf/ushy.md) | Same kind of fund | 0.08% | $8 | ICE BofA US High Yield Constrained Index |
| [HYG](https://tactfolio.com/etf/hyg.md) | Same kind of fund | 0.49% | $49 | iBoxx USD Liquid High Yield Index |
| [VCIT](https://tactfolio.com/etf/vcit.md) | Related fund | 0.03% | $3 | Bloomberg U.S. 5-10 Year Corporate Bond Index |
| [LQD](https://tactfolio.com/etf/lqd.md) | Related fund | 0.14% | $14 | iBoxx USD Liquid Investment Grade Index |

Fees come from each fund company, checked on the dates shown on each fund's page.

## How JNK and its alternatives did over the same dates

Each row measures the alternative and JNK on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

| ETF | Moves with JNK | Per year | JNK per year | Worst drop | JNK worst drop | Since |
| --- | --- | --- | --- | --- | --- | --- |
| [USHY](https://tactfolio.com/etf/ushy.md) | 0.99 | 4.4% | 3.8% | −22.4% | −22.9% | October 2017 |
| [HYG](https://tactfolio.com/etf/hyg.md) | 0.99 | 4.8% | 4.8% | −34.2% | −38.5% | December 2007 |
| [VCIT](https://tactfolio.com/etf/vcit.md) | 0.69 | 4.0% | 5.3% | −20.6% | −22.9% | November 2009 |
| [LQD](https://tactfolio.com/etf/lqd.md) | 0.69 | 3.8% | 4.8% | −24.9% | −38.5% | December 2007 |

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## Each JNK alternative, compared

### USHY: iShares Broad USD High Yield Corporate Bond ETF

USHY also holds bonds from US companies with weaker credit, which pay more interest and carry more risk. It tracks the ICE BofA US High Yield Constrained Index, while JNK tracks the Bloomberg High Yield Very Liquid Index.

It charges 0.08% a year, about $8 on $10,000, against $40 for JNK. It held 1,902 holdings, against 1,161 for JNK.

From October 2017 to October 2026, USHY returned about 4.4% a year and JNK returned about 3.8% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the [USHY fund page](https://tactfolio.com/etf/ushy.md) for its returns by year and worst drop.

### HYG: iShares iBoxx $ High Yield Corporate Bond ETF

HYG also holds bonds from US companies with weaker credit, which pay more interest and carry more risk. It tracks the iBoxx USD Liquid High Yield Index, while JNK tracks the Bloomberg High Yield Very Liquid Index.

It charges 0.49% a year, about $49 on $10,000, against $40 for JNK. It held 1,334 holdings, against 1,161 for JNK.

From December 2007 to October 2026, HYG returned about 4.8% a year and JNK returned about 4.8% a year. Over about the last five years they moved almost exactly together (correlation 0.99).

Read the [HYG fund page](https://tactfolio.com/etf/hyg.md) for its returns by year and worst drop.

### VCIT: Vanguard Intermediate-Term Corporate Bond ETF

VCIT is a looser match. It holds bonds from large US companies with strong credit ratings, while JNK holds bonds from US companies with weaker credit, which pay more interest and carry more risk.

It charges 0.03% a year, about $3 on $10,000, against $40 for JNK. It held 2,342 holdings, against 1,161 for JNK.

From November 2009 to October 2026, VCIT returned about 4.0% a year and JNK returned about 5.3% a year. Over about the last five years they often moved together, but not always (correlation 0.69).

Read the [VCIT fund page](https://tactfolio.com/etf/vcit.md) for its returns by year and worst drop.

### LQD: iShares iBoxx $ Investment Grade Corporate Bond ETF

LQD is a looser match. It holds bonds from large US companies with strong credit ratings, while JNK holds bonds from US companies with weaker credit, which pay more interest and carry more risk.

It charges 0.14% a year, about $14 on $10,000, against $40 for JNK. It held 3,171 holdings, against 1,161 for JNK.

From December 2007 to October 2026, LQD returned about 3.8% a year and JNK returned about 4.8% a year. Over about the last five years they often moved together, but not always (correlation 0.69).

Read the [LQD fund page](https://tactfolio.com/etf/lqd.md) for its returns by year and worst drop.

## JNK versions from other fund companies

Some people keep all their funds with one company. Here is the closest fund to JNK from each other company on this page:

- **iShares (BlackRock):** [USHY](https://tactfolio.com/etf/ushy.md), iShares Broad USD High Yield Corporate Bond ETF (same kind of fund, 0.08% a year)
- **Vanguard:** [VCIT](https://tactfolio.com/etf/vcit.md), Vanguard Intermediate-Term Corporate Bond ETF (related fund, 0.03% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company's index mutual fund, are not listed here.

## How to choose between JNK and its alternatives

- **What it tracks.** A fund on the same index holds the same bonds. A different index can mean different weights, more or fewer holdings, or a different mix.
- **The fee.** The difference is often small. On $10,000, JNK costs about $40 a year. VCIT costs about $3.
- **History.** An older fund has been through more bad markets, so you can see how far it fell.
- **What you already own.** Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

## Swapping JNK to harvest a tax loss

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a "substantially identical" security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as USHY, HYG or VCIT, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in [Publication 550](https://www.irs.gov/publications/p550).

## Test JNK and its alternatives in a backtest

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the [builder](https://tactfolio.com/builder), add JNK and USHY, and see how each would have done on the same dates, or how a mix of both would have done.

## The details

Alternatives are picked from facts, not from returns. First come funds that track the same index as JNK. Then come funds that hold the same kind of bonds through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like JNK over about the last five years come first. Returns and worst drops use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with JNK only on days both traded. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [Portfolio rebalancing](https://tactfolio.com/learn/portfolio-rebalancing): What portfolio rebalancing is, why a 60/40 mix drifts, calendar vs threshold methods, and how taxes and costs fit in.
- [Risk parity](https://tactfolio.com/learn/risk-parity): Risk parity balances risk instead of dollars. See a simple stock and bond example, why funds use leverage, and what went wrong in 2022.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What ETF is most similar to JNK?

USHY is the closest. USHY also holds bonds from US companies with weaker credit, which pay more interest and carry more risk. It tracks the ICE BofA US High Yield Constrained Index, while JNK tracks the Bloomberg High Yield Very Liquid Index. Over about the last five years they moved almost exactly together.

### Is there a cheaper alternative to JNK?

Yes. VCIT charges 0.03% a year, USHY charges 0.08% a year and LQD charges 0.14% a year, against 0.4% for JNK. On $10,000 that is about $3 a year instead of $40.

### Is JNK or USHY better?

Neither is better for everyone. From October 2017 to October 2026, JNK returned about 3.8% a year and USHY returned about 4.4% a year. JNK charges 0.4% a year and USHY charges 0.08%. Past returns do not tell you what comes next.

### What if I had put $10,000 in JNK 10 years ago?

It would have grown to about $15,075 by October 16, 2026, with dividends reinvested. That is about 4.2% a year. Past returns do not tell you what comes next.

## Sources

- [SPDR (State Street): State Street SPDR Bloomberg High Yield Bond ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-spdr-bloomberg-high-yield-bond-etf-jnk)
- [iShares (BlackRock): iShares Broad USD High Yield Corporate Bond ETF fund page](https://www.ishares.com/us/products/291299/ishares-broad-usd-high-yield-corporate-bond-etf)
- [iShares (BlackRock): iShares iBoxx $ High Yield Corporate Bond ETF fund page](https://www.ishares.com/us/products/239565/ishares-iboxx-high-yield-corporate-bond-etf)
- [Vanguard: Vanguard Intermediate-Term Corporate Bond ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vcit)
- [iShares (BlackRock): iShares iBoxx $ Investment Grade Corporate Bond ETF fund page](https://www.ishares.com/us/products/239566/ishares-iboxx-investment-grade-corporate-bond-etf)
- [IRS Publication 550: wash sales](https://www.irs.gov/publications/p550)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.