TIP vs TLT: Correlation
How closely do iShares TIPS Bond ETF (TIP) and iShares 20+ Year Treasury Bond ETF (TLT) trade together? Their weekly returns over three years give a correlation of 0.86, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TIP and TLT?
On 3 years of weekly data the TIP/TLT correlation comes out at 0.86, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.78 lands near the 3-year figure. The 5-year figure is 0.73, and annualized covariance runs at 50.6 %².
Among the 29 assets we track against TIP, TLT ranks #5 by 3-year correlation. Neither side won the trailing year by much: +1.4% against +0.3%. The rolling one-year correlation stayed in a tight band between 0.69 and 0.90 over the past three years, which points to a structural rather than episodic relationship. Risk is not evenly split, since TLT carries 3.1 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.
TIP vs TLT: side by side
| TIP (iShares TIPS Bond ETF) | TLT (iShares 20+ Year Treasury Bond ETF) | |
|---|---|---|
| 1-year return | +1.4% | +0.3% |
| 5-year return | +1.2% | -34.0% |
| Volatility (ann.) | 4.4% | 13.5% |
| Beta vs S&P 500 | 0.05 | 0.11 |
| Max drawdown (3Y) | -3.7% | -14.8% |
| Dividend yield | 4.47% | 4.75% |
| Expense ratio | 0.18% | 0.15% |
| Assets under management | $14.6B | $41.5B |
| Sector / category | ETF · Bonds | ETF · Bonds |
TIP, iShares's Inflation-Protected Bond fund, carries $14.6B under management, a 0.18% expense ratio, a 4.47% 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 | TIP | TLT |
|---|---|---|
| 2022 | -12.3% | -31.2% |
| 2023 | +3.8% | +2.8% |
| 2024 | +1.7% | -8.1% |
| 2025 | +6.8% | +4.2% |
| 2026 | +1.1% | -2.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TIP and TLT good diversifiers for each other?
No: a correlation of 0.86 means TIP and TLT tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between TIP and TLT?
The TIP/TLT correlation stands at 0.86 on a 3-year window (1 year: 0.78, 5 years: 0.73), computed from weekly returns as of 2026-08-27.
Is TLT a good diversifier for TIP?
No: a correlation of 0.86 means TIP and TLT tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.86 mean?
A reading of 0.86 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/tip-vs-tlt.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/tip-vs-tlt/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TIP correlations · TLT correlations
