BND vs TIP: Correlation
How closely do Vanguard Total Bond Market ETF (BND) and iShares TIPS Bond ETF (TIP) trade together? Their weekly returns over three years give a correlation of 0.92, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BND and TIP?
Over the past 3 years, BND and TIP moved with a correlation of 0.92, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.87 over 1 year against 0.92 over 3. Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 20.9 %².
Among the 33 assets we track against BND, TIP ranks #5 by 3-year correlation. Twelve-month performance is nearly a tie, at +2.3% for BND and +1.4% for TIP. The rolling one-year correlation stayed in a tight band between 0.77 and 0.94 over the past three years, which points to a structural rather than episodic relationship.
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.
BND vs TIP: side by side
| BND (Vanguard Total Bond Market ETF) | TIP (iShares TIPS Bond ETF) | |
|---|---|---|
| 1-year return | +2.3% | +1.4% |
| 5-year return | -1.3% | +1.2% |
| Volatility (ann.) | 5.2% | 4.4% |
| Beta vs S&P 500 | 0.06 | 0.05 |
| Max drawdown (3Y) | -4.7% | -3.7% |
| Dividend yield | – | 4.47% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $14.6B |
| Sector / category | ETF · Bonds | 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 | BND | TIP |
|---|---|---|
| 2022 | -13.1% | -12.3% |
| 2023 | +5.7% | +3.8% |
| 2024 | +1.4% | +1.7% |
| 2025 | +7.1% | +6.8% |
| 2026 | +0.2% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BND and TIP good diversifiers for each other?
No: a correlation of 0.92 means BND and TIP tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between BND and TIP?
Using weekly returns as of 2026-08-27: 0.92 over 3 years, with 0.87 over the last year and 0.79 over 5 years.
Is TIP a good diversifier for BND?
No: a correlation of 0.92 means BND and TIP tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.92 mean?
A reading of 0.92 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/bnd-vs-tip.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bnd-vs-tip/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BND correlations · TIP correlations
