AGG vs TIP: Correlation
iShares Core US Aggregate Bond ETF (AGG) and iShares TIPS Bond ETF (TIP) show a very strong relationship: their 3-year correlation of weekly returns is 0.91.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and TIP?
On 3 years of weekly data the AGG/TIP correlation comes out at 0.91, very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.87 over 1 year against 0.91 over 3. The 5-year figure is 0.79, and annualized covariance runs at 21.2 %².
Within AGG's tracked universe of 34 assets, TIP comes in at #5 by 3-year correlation. Neither side won the trailing year by much: +2.3% against +1.4%. Stability stands out here, with the rolling one-year correlation confined to 0.76 through 0.93.
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 TIP: side by side
| AGG (iShares Core US Aggregate Bond ETF) | TIP (iShares TIPS Bond ETF) | |
|---|---|---|
| 1-year return | +2.3% | +1.4% |
| 5-year return | -1.1% | +1.2% |
| Volatility (ann.) | 5.3% | 4.4% |
| Beta vs S&P 500 | 0.07 | 0.05 |
| Max drawdown (3Y) | -4.8% | -3.7% |
| Dividend yield | 4.05% | 4.47% |
| Expense ratio | 0.03% | 0.18% |
| Assets under management | $137.1B | $14.6B |
| Sector / category | ETF · Bonds | ETF · Bonds |
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. TIP is an Inflation-Protected Bond fund from iShares: $14.6B under management, a 0.18% expense ratio, a 4.47% trailing dividend yield.
Year-by-year returns
| Year | AGG | TIP |
|---|---|---|
| 2022 | -13.0% | -12.3% |
| 2023 | +5.7% | +3.8% |
| 2024 | +1.3% | +1.7% |
| 2025 | +7.2% | +6.8% |
| 2026 | +0.3% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and TIP good diversifiers for each other?
Not really. At 0.91, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between AGG and TIP?
The AGG/TIP correlation stands at 0.91 on a 3-year window (1 year: 0.87, 5 years: 0.79), computed from weekly returns as of 2026-08-27.
Is TIP a good diversifier for AGG?
Not really. At 0.91, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.91 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-tip.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/agg-vs-tip/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: AGG correlations · TIP correlations
