LQD vs TLT: Correlation
Measured on weekly returns over the past three years, iShares iBoxx Investment Grade Corporate Bond ETF (LQD) and iShares 20+ Year Treasury Bond ETF (TLT) carry a correlation of 0.92, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LQD and TLT?
Over the past 3 years, LQD and TLT moved with a correlation of 0.92, which is very strong, meaning they move nearly in lockstep. The relationship has been stable: the 1-year correlation (0.87) sits close to the 3-year figure. Over 5 years the correlation is 0.88, and the annualized covariance of weekly returns is 89.7 %².
Among the 33 assets we track against LQD, TLT ranks #4 by 3-year correlation. Neither side won the trailing year by much: +1.5% against +0.3%. Stability stands out here, with the rolling one-year correlation confined to 0.85 through 0.95. Note the risk asymmetry: TLT runs 1.8 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.
LQD vs TLT: side by side
| LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | TLT (iShares 20+ Year Treasury Bond ETF) | |
|---|---|---|
| 1-year return | +1.5% | +0.3% |
| 5-year return | -4.1% | -34.0% |
| Volatility (ann.) | 7.3% | 13.5% |
| Beta vs S&P 500 | 0.15 | 0.11 |
| Max drawdown (3Y) | -6.7% | -14.8% |
| Dividend yield | 4.66% | 4.75% |
| Expense ratio | 0.14% | 0.15% |
| Assets under management | $33.0B | $41.5B |
| Sector / category | ETF · Bonds | ETF · Bonds |
LQD, iShares's Corporate Bond fund, carries $33.0B under management, a 0.14% expense ratio, a 4.66% 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 | LQD | TLT |
|---|---|---|
| 2022 | -17.9% | -31.2% |
| 2023 | +9.4% | +2.8% |
| 2024 | +0.9% | -8.1% |
| 2025 | +7.9% | +4.2% |
| 2026 | -0.5% | -2.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LQD and TLT good diversifiers for each other?
No: a correlation of 0.92 means LQD and TLT tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between LQD and TLT?
The LQD/TLT correlation stands at 0.92 on a 3-year window (1 year: 0.87, 5 years: 0.88), computed from weekly returns as of 2026-08-27.
Is TLT a good diversifier for LQD?
No: a correlation of 0.92 means LQD and TLT tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.92 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/lqd-vs-tlt.json
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[](https://www.pairbook.io/pair/lqd-vs-tlt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LQD correlations · TLT correlations
