HYG ETF flips SCHD: Is it a good income fund to buy?

Wall Street [https://invezz.com/wp-content/uploads/2025/08/20250830_182242_4cKF5.png] The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) is doing relatively well this year, and is hovering at its all-time high as demand among investors jumped. HYG stock was trading at $81.23, up by 10% above the lowest level this year. HYG ETF HAS FLIPPED SCHD IN TOTAL RETURNS Most notably, the HYG ETF has flipped the Schwab US Dividend Equity (SCHD) in terms of total returns. Seeking Alpha data shows that its total return this year was 7.3%, much higher than SCHD’s 2.38%. Its performance this year has helped it to overtake the SCHD in its long-term gains. Its total return in the last three years is now 30% compared to SCHD’s 27%. [https://invezz.com/wp-content/uploads/2025/09/HYG-vs-1024x354.png] FALLING INTEREST RATES AND SPREADS The HYG ETF has also attracted over $3.5 billion in inflows this year, bringing its total assets to over $18 billion. This surge is likely because of the significantly low default rate in the United States and the narrowing credit spreads. The chart below shows that the delinquency rate of all commercial loans in the…