Two of the market's most popular income ETFs compared side-by-side. See which one fits your yield strategy.
What this means: CGHY is ratedTier 2 (Yield Plus)while FLOT is ratedTier 1 (Cornerstone).FLOT is structurally lower risk than CGHY.
| Metric | CGHY | FLOT |
|---|---|---|
| Total Return (1Y) | 0.00% | 4.57% |
| NAV Change (1Y) | 0.00% | -0.20% |
| Max Drawdown | -1.91% | -1.94% |
| Beta | - | - |
* Returns include dividend reinvestment. Drawdown calculates peak-to-trough decline over trailing 12 months.
CGHY (Capital Group High Yield Bond ETF) is a conservative dividend growth fund managed by Capital Group. It focuses on generating income through strategic holdings. With $53.2M in assets under management, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
FLOT (iShares Floating Rate Bond ETF) is a conservative dividend growth fund managed by iShares. It focuses on generating income through strategic holdings. With $9.0B in assets under management, this fund has been operational since its inception.
Strategy: Focuses on quality dividend-paying companies with strong balance sheets and consistent payout histories.
In the head-to-head battle of CGHY vs FLOT, the choice depends on your specific goal. FLOT wins for Immediate Income with a 4.77% yield. However, FLOT is the better choice for Long-Term Growth due to superior total return performance.
Which fund is safer for retirement income? We analyze the yield sustainability and structural risk.
The Bottom Line Question: If you invest $100,000 today, how much cash will you actually receive each month? Here's the exact math:
CGHY
Annual Yield: 2.52%
$210/mo
($2,520/year)
Frequency: monthly
FLOT
Annual Yield: 4.77%
$398/mo
($4,773/year)
Frequency: monthly
Income Gap: FLOT generates $2,253/year more than CGHY on the same $100k investment.
Over 20 years, that's $45,061 in additional cash flow (before reinvestment).
Context Matters: Higher income doesn't always mean better investment. Review the "Yield Trap" and "Total Return" sections above—you want income that's sustainable, not just headline-grabbing.
Historical data reveals how these funds behave during market stress. FLOT has delivered a superior Total Return of 4.57% over the past year.
What is an Expense Ratio? The annual fee charged by the fund, expressed as a percentage of assets. It's deducted daily from the fund's NAV, making it invisible to most investors—but it compounds over time.
FLOT (LOWER COST)
0.150%
Annual expense ratio
CGHY (HIGHER COST)
0.390%
Annual expense ratio
20-YEAR FEE IMPACT SIMULATION ($100,000 INITIAL INVESTMENT)
The Hidden Cost of "Just 0.24%": That seemingly small difference of 0.240% annually becomes $4,800 in lost wealth over 20 years. Factor in compound growth, and you're giving up ~$13,837 in potential portfolio value.
💡 Cost Efficiency Winner: FLOT is the clear winner for long-term buy-and-hold investors. Lower fees mean more capital compounds in YOUR account, not the fund manager's.
Every investor has a unique risk profile. Use our Portfolio Intelligence tool to see the impact of adding these ETFs to your holdings.