HYG vs IEF: Correlation
Measured on weekly returns over the past three years, iShares iBoxx High Yield Corporate Bond ETF (HYG) and iShares 7-10 Year Treasury Bond ETF (IEF) carry a correlation of 0.55, a moderate link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HYG and IEF?
On 3 years of weekly data the HYG/IEF correlation comes out at 0.55, moderate. Recent behaviour matches the longer record: 0.58 over 1 year against 0.55 over 3. The 5-year figure is 0.47, and annualized covariance runs at 16.7 %².
Within HYG's tracked universe of 46 assets, IEF comes in at #29 by 3-year correlation. Their 12-month results are close: +4.6% for HYG against +0.9% for IEF. This link changes with the market regime, having swung between 0.06 and 0.80 on a rolling one-year basis.
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.
HYG vs IEF: side by side
| HYG (iShares iBoxx High Yield Corporate Bond ETF) | IEF (iShares 7-10 Year Treasury Bond ETF) | |
|---|---|---|
| 1-year return | +4.6% | +0.9% |
| 5-year return | +19.9% | -7.9% |
| Volatility (ann.) | 4.7% | 6.5% |
| Beta vs S&P 500 | 0.22 | 0.04 |
| Max drawdown (3Y) | -4.6% | -6.9% |
| Dividend yield | 5.94% | 3.96% |
| Expense ratio | 0.49% | 0.15% |
| Assets under management | $17.1B | $47.2B |
| Sector / category | ETF · Bonds | ETF · Bonds |
HYG is a High Yield Bond fund from iShares: $17.1B under management, a 0.49% expense ratio, a 5.94% trailing dividend yield. 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 | HYG | IEF |
|---|---|---|
| 2022 | -11.0% | -15.2% |
| 2023 | +11.5% | +3.6% |
| 2024 | +8.0% | -0.6% |
| 2025 | +8.6% | +8.0% |
| 2026 | +2.5% | -0.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HYG and IEF good diversifiers for each other?
Only partially. A correlation of 0.55 means HYG and IEF 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 HYG and IEF?
As of 2026-08-27, the correlation of weekly returns between HYG and IEF is 0.55 over 3 years, 0.58 over 1 year and 0.47 over 5 years.
Is IEF a good diversifier for HYG?
Only partially. A correlation of 0.55 means HYG and IEF share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.55 mean?
On the −1 to +1 scale, 0.55 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/hyg-vs-ief.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/hyg-vs-ief/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: HYG correlations · IEF correlations
