IEF vs TLT: Correlation
Measured on weekly returns over the past three years, iShares 7-10 Year Treasury Bond ETF (IEF) and iShares 20+ Year Treasury Bond ETF (TLT) carry a correlation of 0.95, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEF and TLT?
Over the past 3 years, IEF and TLT moved with a correlation of 0.95, which is very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.92 lands near the 3-year figure. Over 5 years the correlation is 0.92, and the annualized covariance of weekly returns is 82.7 %².
Few assets follow IEF as closely as TLT, which ranks #3 of 48 tracked partners. Neither side won the trailing year by much: +0.9% against +0.3%. Stability stands out here, with the rolling one-year correlation confined to 0.89 through 0.97. Risk is not evenly split, since TLT carries 2.1 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 TLT: side by side
| IEF (iShares 7-10 Year Treasury Bond ETF) | TLT (iShares 20+ Year Treasury Bond ETF) | |
|---|---|---|
| 1-year return | +0.9% | +0.3% |
| 5-year return | -7.9% | -34.0% |
| Volatility (ann.) | 6.5% | 13.5% |
| Beta vs S&P 500 | 0.04 | 0.11 |
| Max drawdown (3Y) | -6.9% | -14.8% |
| Dividend yield | 3.96% | 4.75% |
| Expense ratio | 0.15% | 0.15% |
| Assets under management | $47.2B | $41.5B |
| Sector / category | ETF · Bonds | ETF · Bonds |
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. On the fund side, TLT sits in the Long Government category at iShares, with $41.5B under management, a 0.15% expense ratio, a 4.75% trailing dividend yield.
Year-by-year returns
| Year | IEF | TLT |
|---|---|---|
| 2022 | -15.2% | -31.2% |
| 2023 | +3.6% | +2.8% |
| 2024 | -0.6% | -8.1% |
| 2025 | +8.0% | +4.2% |
| 2026 | -0.8% | -2.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEF and TLT good diversifiers for each other?
No: a correlation of 0.95 means IEF and TLT tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between IEF and TLT?
As of 2026-08-27, the correlation of weekly returns between IEF and TLT is 0.95 over 3 years, 0.92 over 1 year and 0.92 over 5 years.
Is TLT a good diversifier for IEF?
No: a correlation of 0.95 means IEF and TLT tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.95 mean?
A reading of 0.95 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/ief-vs-tlt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ief-vs-tlt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IEF correlations · TLT correlations
