BKT vs TIP: Correlation
BlackRock Income Trust Inc. (The) (BKT) and iShares TIPS Bond ETF (TIP) show a strong relationship: their 3-year correlation of weekly returns is 0.71.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BKT and TIP?
Across a 3-year window, the weekly returns of BKT and TIP correlate at 0.71, strong. Little has changed lately, as the 1-year reading of 0.66 lands near the 3-year figure. Stretching to 5 years gives 0.55, with an annualized covariance of 30.0 %².
By 3-year correlation, TIP places #7 of the 16 assets tracked against BKT. Twelve-month performance is nearly a tie, at -3.3% for BKT and +1.4% for TIP. Note the risk asymmetry: BKT runs 2.2 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 TIP: side by side
| BKT (BlackRock Income Trust Inc. (The)) | TIP (iShares TIPS Bond ETF) | |
|---|---|---|
| 1-year return | -3.3% | +1.4% |
| 5-year return | -16.5% | +1.2% |
| Volatility (ann.) | 9.7% | 4.4% |
| Beta vs S&P 500 | 0.19 | 0.05 |
| Max drawdown (3Y) | -10.4% | -3.7% |
| Market cap | $0.3B | – |
| P/E (trailing) | 11.0 | – |
| Dividend yield | 10.17% | 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 | BKT | TIP |
|---|---|---|
| 2022 | -21.6% | -12.3% |
| 2023 | +7.6% | +3.8% |
| 2024 | +3.2% | +1.7% |
| 2025 | +5.0% | +6.8% |
| 2026 | +0.0% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BKT and TIP good diversifiers for each other?
To a limited degree. At 0.71 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 BKT and TIP?
Using weekly returns as of 2026-08-27: 0.71 over 3 years, with 0.66 over the last year and 0.55 over 5 years.
Is TIP a good diversifier for BKT?
To a limited degree. At 0.71 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 0.71 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/bkt-vs-tip.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bkt-vs-tip/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BKT correlations · TIP correlations
