IEF vs TIP: Correlation
iShares 7-10 Year Treasury Bond ETF (IEF) and iShares TIPS Bond ETF (TIP) show a very strong relationship: their 3-year correlation of weekly returns is 0.91.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEF and TIP?
Over the past 3 years, IEF and TIP moved with a correlation of 0.91, which is very strong, meaning they move nearly in lockstep. Recent behaviour matches the longer record: 0.87 over 1 year against 0.91 over 3. Over 5 years the correlation is 0.79, and the annualized covariance of weekly returns is 25.8 %².
By 3-year correlation, TIP places #5 of the 48 assets tracked against IEF. Twelve-month performance is nearly a tie, at +0.9% for IEF and +1.4% for TIP. Stability stands out here, with the rolling one-year correlation confined to 0.74 through 0.94.
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 TIP: side by side
| IEF (iShares 7-10 Year Treasury Bond ETF) | TIP (iShares TIPS Bond ETF) | |
|---|---|---|
| 1-year return | +0.9% | +1.4% |
| 5-year return | -7.9% | +1.2% |
| Volatility (ann.) | 6.5% | 4.4% |
| Beta vs S&P 500 | 0.04 | 0.05 |
| Max drawdown (3Y) | -6.9% | -3.7% |
| Dividend yield | 3.96% | 4.47% |
| Expense ratio | 0.15% | 0.18% |
| Assets under management | $47.2B | $14.6B |
| Sector / category | ETF · Bonds | ETF · Bonds |
IEF is a Long Government fund from iShares: $47.2B under management, a 0.15% expense ratio, a 3.96% 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 | IEF | TIP |
|---|---|---|
| 2022 | -15.2% | -12.3% |
| 2023 | +3.6% | +3.8% |
| 2024 | -0.6% | +1.7% |
| 2025 | +8.0% | +6.8% |
| 2026 | -0.8% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEF and TIP good diversifiers for each other?
Not really. At 0.91, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between IEF and TIP?
The IEF/TIP correlation stands at 0.91 on a 3-year window (1 year: 0.87, 5 years: 0.79), computed from weekly returns as of 2026-08-27.
Is TIP a good diversifier for IEF?
Not really. At 0.91, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.91 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-tip.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ief-vs-tip/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: IEF correlations · TIP correlations
