IEF vs SM: Correlation
How closely do iShares 7-10 Year Treasury Bond ETF (IEF) and SM Energy Company (SM) trade together? Their weekly returns over three years give a correlation of -0.23, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEF and SM?
Over the past 3 years, IEF and SM moved with a correlation of -0.23, which is negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.59) runs below the 3-year figure (-0.23). Over 5 years the correlation is -0.15, and the annualized covariance of weekly returns is -72.2 %².
By 3-year correlation, SM places #26 of the 48 assets tracked against IEF. Correlation aside, the last 12 months split them widely, with SM ahead by 35.2 points (+0.9% versus +36.1%). Risk is not evenly split, since SM carries 7.3 times the volatility of the other side.
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.
IEF vs SM: side by side
| IEF (iShares 7-10 Year Treasury Bond ETF) | SM (SM Energy Company) | |
|---|---|---|
| 1-year return | +0.9% | +36.1% |
| 5-year return | -7.9% | +114.6% |
| Volatility (ann.) | 6.5% | 47.6% |
| Beta vs S&P 500 | 0.04 | 0.44 |
| Max drawdown (3Y) | -6.9% | -64.9% |
| Market cap | – | $8.8B |
| P/E (trailing) | – | 6.3 |
| Dividend yield | 3.96% | 2.32% |
| Expense ratio | 0.15% | – |
| Assets under management | $47.2B | – |
| Sector / category | ETF · Bonds | US Listed |
IEF is a Long Government fund from iShares: $47.2B under management, a 0.15% expense ratio, a 3.96% trailing dividend yield.
Year-by-year returns
| Year | IEF | SM |
|---|---|---|
| 2022 | -15.2% | +18.6% |
| 2023 | +3.6% | +13.1% |
| 2024 | -0.6% | +1.8% |
| 2025 | +8.0% | -49.7% |
| 2026 | -0.8% | +99.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEF and SM good diversifiers for each other?
Yes: at -0.23, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between IEF and SM?
The IEF/SM correlation stands at -0.23 on a 3-year window (1 year: -0.59, 5 years: -0.15), computed from weekly returns as of 2026-08-27.
Is SM a good diversifier for IEF?
Yes: at -0.23, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.23 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/ief-vs-sm.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/ief-vs-sm/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IEF correlations · SM correlations
