← Asset class regime views

US High-Yield Credit

VWEHX · Vanguard High-Yield Corporate Fund NAV (dividend-reinvested) — long-history HY total return; monthly-return corr 0.906 vs HYG over the 2007+ overlap. FRED ICE BofA HY TR indices are license-capped to ~3 years.

RegimeMean 12mMedianHit rateVolatilityN
Expansion+7.5%+7.1%89%7.0%245
Caution+7.8%+7.8%84%9.4%277
Contraction+20.3%+13.8%100%14.0%26
Forward returns are 12-month total returns (dividends reinvested), measured from each month-end and grouped by the macro regime in effect at that month-end. Sample begins 1980-01-31.Total-return history starts at the proxy ETF's inception (1980-01-02), so contraction-regime samples in particular can be thin — read low-N rows as directional, not precise. These are historical base rates, not forecasts or investment advice.