HYG vs TIP: Correlation
How closely do iShares iBoxx High Yield Corporate Bond ETF (HYG) and iShares TIPS Bond ETF (TIP) trade together? Their weekly returns over three years give a correlation of 0.60, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are HYG and TIP?
Over the past 3 years, HYG and TIP moved with a correlation of 0.60, which is strong. The relationship has been stable: the 1-year correlation (0.56) sits close to the 3-year figure. Over 5 years the correlation is 0.50, and the annualized covariance of weekly returns is 12.3 %².
Among the 46 assets we track against HYG, TIP ranks #28 by 3-year correlation. Their 12-month results are close: +4.6% for HYG against +1.4% for TIP. The relationship is regime-dependent: the rolling one-year correlation swung between 0.20 and 0.76 over the past three years, so this pair behaves very differently depending on the market environment.
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 TIP: side by side
| HYG (iShares iBoxx High Yield Corporate Bond ETF) | TIP (iShares TIPS Bond ETF) | |
|---|---|---|
| 1-year return | +4.6% | +1.4% |
| 5-year return | +19.9% | +1.2% |
| Volatility (ann.) | 4.7% | 4.4% |
| Beta vs S&P 500 | 0.22 | 0.05 |
| Max drawdown (3Y) | -4.6% | -3.7% |
| Dividend yield | 5.94% | 4.47% |
| Expense ratio | 0.49% | 0.18% |
| Assets under management | $17.1B | $14.6B |
| Sector / category | ETF · Bonds | ETF · Bonds |
HYG, iShares's High Yield Bond fund, carries $17.1B under management, a 0.49% expense ratio, a 5.94% trailing dividend yield. 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 | HYG | TIP |
|---|---|---|
| 2022 | -11.0% | -12.3% |
| 2023 | +11.5% | +3.8% |
| 2024 | +8.0% | +1.7% |
| 2025 | +8.6% | +6.8% |
| 2026 | +2.5% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are HYG and TIP good diversifiers for each other?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between HYG and TIP?
As of 2026-08-27, the correlation of weekly returns between HYG and TIP is 0.60 over 3 years, 0.56 over 1 year and 0.50 over 5 years.
Is TIP a good diversifier for HYG?
Somewhat, no more. With 0.60 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.60 mean?
A reading of 0.60 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/hyg-vs-tip.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/hyg-vs-tip/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: HYG correlations · TIP correlations
