IEF vs VLO: Correlation
How closely do iShares 7-10 Year Treasury Bond ETF (IEF) and Valero Energy (VLO) trade together? Their weekly returns over three years give a correlation of -0.20, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEF and VLO?
Over the past 3 years, IEF and VLO moved with a correlation of -0.20, which is negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.28 over 1 year against -0.20 over 3. Over 5 years the correlation is -0.21, and the annualized covariance of weekly returns is -45.4 %².
By 3-year correlation, VLO places #21 of the 48 assets tracked against IEF. Correlation aside, the last 12 months split them widely, with VLO ahead by 133.9 points (+0.9% versus +134.8%). Across three years, the rolling one-year figure varied moderately, from -0.40 to -0.01. Note the risk asymmetry: VLO runs 5.4 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 VLO: side by side
| IEF (iShares 7-10 Year Treasury Bond ETF) | VLO (Valero Energy) | |
|---|---|---|
| 1-year return | +0.9% | +134.8% |
| 5-year return | -7.9% | +512.9% |
| Volatility (ann.) | 6.5% | 34.8% |
| Beta vs S&P 500 | 0.04 | 0.55 |
| Max drawdown (3Y) | -6.9% | -41.2% |
| Market cap | – | $99.8B |
| P/E (trailing) | – | 14.5 |
| Dividend yield | 3.96% | 1.34% |
| Expense ratio | 0.15% | – |
| Assets under management | $47.2B | – |
| Sector / category | ETF · Bonds | Energy |
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 | VLO |
|---|---|---|
| 2022 | -15.2% | +75.0% |
| 2023 | +3.6% | +5.9% |
| 2024 | -0.6% | -3.0% |
| 2025 | +8.0% | +37.0% |
| 2026 | -0.8% | +116.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEF and VLO good diversifiers for each other?
By historical standards, yes. A correlation of -0.20 means the two rarely move for the same reasons.
FAQ
What is the correlation between IEF and VLO?
As of 2026-08-27, the correlation of weekly returns between IEF and VLO is -0.20 over 3 years, -0.28 over 1 year and -0.21 over 5 years.
Is VLO a good diversifier for IEF?
By historical standards, yes. A correlation of -0.20 means the two rarely move for the same reasons.
What does a correlation of -0.20 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.
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Related comparisons
Hubs: IEF correlations · VLO correlations
