BKT vs IEF: Correlation
How closely do BlackRock Income Trust Inc. (The) (BKT) and iShares 7-10 Year Treasury Bond ETF (IEF) trade together? Their weekly returns over three years give a correlation of 0.74, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BKT and IEF?
Across a 3-year window, the weekly returns of BKT and IEF correlate at 0.74, strong. The relationship has been stable: the 1-year correlation (0.70) sits close to the 3-year figure. Stretching to 5 years gives 0.67, with an annualized covariance of 46.7 %².
Within BKT's tracked universe of 16 assets, IEF comes in at #5 by 3-year correlation. Their 12-month results are close: -3.3% for BKT against +0.9% for IEF.
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.
BKT vs IEF: side by side
| BKT (BlackRock Income Trust Inc. (The)) | IEF (iShares 7-10 Year Treasury Bond ETF) | |
|---|---|---|
| 1-year return | -3.3% | +0.9% |
| 5-year return | -16.5% | -7.9% |
| Volatility (ann.) | 9.7% | 6.5% |
| Beta vs S&P 500 | 0.19 | 0.04 |
| Max drawdown (3Y) | -10.4% | -6.9% |
| Market cap | $0.3B | – |
| P/E (trailing) | 11.0 | – |
| Dividend yield | 10.17% | 3.96% |
| Expense ratio | – | 0.15% |
| Assets under management | – | $47.2B |
| Sector / category | US Listed | ETF · Bonds |
On the fund side, IEF sits in the Long Government category at iShares, with $47.2B under management, a 0.15% expense ratio, a 3.96% trailing dividend yield.
Year-by-year returns
| Year | BKT | IEF |
|---|---|---|
| 2022 | -21.6% | -15.2% |
| 2023 | +7.6% | +3.6% |
| 2024 | +3.2% | -0.6% |
| 2025 | +5.0% | +8.0% |
| 2026 | +0.0% | -0.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BKT and IEF good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BKT and IEF?
As of 2026-08-27, the correlation of weekly returns between BKT and IEF is 0.74 over 3 years, 0.70 over 1 year and 0.67 over 5 years.
Is IEF a good diversifier for BKT?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.74 mean?
A reading of 0.74 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bkt-vs-ief.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/bkt-vs-ief/)
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Related comparisons
Hubs: BKT correlations · IEF correlations
