BBN vs TIP: Correlation
BlackRock Taxable Municipal Bond Trust (BBN) and iShares TIPS Bond ETF (TIP) show a strong relationship: their 3-year correlation of weekly returns is 0.73.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BBN and TIP?
Over the past 3 years, BBN and TIP moved with a correlation of 0.73, which is strong. Recent behaviour matches the longer record: 0.65 over 1 year against 0.73 over 3. Over 5 years the correlation is 0.66, and the annualized covariance of weekly returns is 39.0 %².
Among the 18 assets we track against BBN, TIP ranks #6 by 3-year correlation. Their 12-month results are close: +4.4% for BBN against +1.4% for TIP. One caveat on sizing: BBN is 2.8 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
BBN vs TIP: side by side
| BBN (BlackRock Taxable Municipal Bond Trust) | TIP (iShares TIPS Bond ETF) | |
|---|---|---|
| 1-year return | +4.4% | +1.4% |
| 5-year return | -14.4% | +1.2% |
| Volatility (ann.) | 12.3% | 4.4% |
| Beta vs S&P 500 | 0.26 | 0.05 |
| Max drawdown (3Y) | -11.8% | -3.7% |
| Market cap | $1.0B | – |
| P/E (trailing) | 12.5 | – |
| Dividend yield | 0.00% | 4.47% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $14.6B |
| Sector / category | US Listed | ETF · Bonds |
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 | BBN | TIP |
|---|---|---|
| 2022 | -31.0% | -12.3% |
| 2023 | +3.6% | +3.8% |
| 2024 | +6.0% | +1.7% |
| 2025 | +8.6% | +6.8% |
| 2026 | +2.3% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BBN and TIP good diversifiers for each other?
Only partially. A correlation of 0.73 means BBN and TIP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between BBN and TIP?
As of 2026-08-27, the correlation of weekly returns between BBN and TIP is 0.73 over 3 years, 0.65 over 1 year and 0.66 over 5 years.
Is TIP a good diversifier for BBN?
Only partially. A correlation of 0.73 means BBN and TIP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
On the −1 to +1 scale, 0.73 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bbn-vs-tip.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bbn-vs-tip/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BBN correlations · TIP correlations
