AGG vs BKT: Correlation
Measured on weekly returns over the past three years, iShares Core US Aggregate Bond ETF (AGG) and BlackRock Income Trust Inc. (The) (BKT) carry a correlation of 0.76, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and BKT?
Across a 3-year window, the weekly returns of AGG and BKT correlate at 0.76, strong. Recent behaviour matches the longer record: 0.70 over 1 year against 0.76 over 3. Stretching to 5 years gives 0.72, with an annualized covariance of 39.2 %².
By 3-year correlation, BKT places #7 of the 34 assets tracked against AGG. Over the last 12 months AGG came out ahead by 5.6 percentage points (+2.3% against -3.3%). Risk is not evenly split, since BKT carries 1.8 times the volatility of the other side.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
AGG vs BKT: side by side
| AGG (iShares Core US Aggregate Bond ETF) | BKT (BlackRock Income Trust Inc. (The)) | |
|---|---|---|
| 1-year return | +2.3% | -3.3% |
| 5-year return | -1.1% | -16.5% |
| Volatility (ann.) | 5.3% | 9.7% |
| Beta vs S&P 500 | 0.07 | 0.19 |
| Max drawdown (3Y) | -4.8% | -10.4% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | 11.0 |
| Dividend yield | 4.05% | 10.17% |
| Expense ratio | 0.03% | – |
| Assets under management | $137.1B | – |
| Sector / category | ETF · Bonds | US Listed |
On the fund side, AGG sits in the Intermediate Core Bond category at iShares, with $137.1B under management, a 0.03% expense ratio, a 4.05% trailing dividend yield.
Year-by-year returns
| Year | AGG | BKT |
|---|---|---|
| 2022 | -13.0% | -21.6% |
| 2023 | +5.7% | +7.6% |
| 2024 | +1.3% | +3.2% |
| 2025 | +7.2% | +5.0% |
| 2026 | +0.3% | +0.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and BKT good diversifiers for each other?
To a limited degree. At 0.76 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between AGG and BKT?
The AGG/BKT correlation stands at 0.76 on a 3-year window (1 year: 0.70, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is BKT a good diversifier for AGG?
To a limited degree. At 0.76 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.76 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/agg-vs-bkt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/agg-vs-bkt/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AGG correlations · BKT correlations
