TIP vs WIA: Correlation
How closely do iShares TIPS Bond ETF (TIP) and Western Asset Inflation-Linked Income Fund (WIA) trade together? Their weekly returns over three years give a correlation of 0.71, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TIP and WIA?
On 3 years of weekly data the TIP/WIA correlation comes out at 0.71, strong. The link has loosened recently: the 1-year correlation (0.56) runs below the 3-year figure (0.71). The 5-year figure is 0.64, and annualized covariance runs at 22.5 %².
Among the 29 assets we track against TIP, WIA ranks #9 by 3-year correlation. Twelve-month performance is nearly a tie, at +1.4% for TIP and +2.1% for WIA. One caveat on sizing: WIA is 1.6 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 WIA: side by side
| TIP (iShares TIPS Bond ETF) | WIA (Western Asset Inflation-Linked Income Fund) | |
|---|---|---|
| 1-year return | +1.4% | +2.1% |
| 5-year return | +1.2% | -3.9% |
| Volatility (ann.) | 4.4% | 7.2% |
| Beta vs S&P 500 | 0.05 | 0.20 |
| Max drawdown (3Y) | -3.7% | -6.4% |
| Market cap | – | $0.2B |
| P/E (trailing) | – | 14.0 |
| Dividend yield | 4.47% | 7.83% |
| Expense ratio | 0.18% | – |
| Assets under management | $14.6B | – |
| Sector / category | ETF · Bonds | US Listed |
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 | TIP | WIA |
|---|---|---|
| 2022 | -12.3% | -25.8% |
| 2023 | +3.8% | +5.0% |
| 2024 | +1.7% | +6.1% |
| 2025 | +6.8% | +11.4% |
| 2026 | +1.1% | +1.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TIP and WIA good diversifiers for each other?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between TIP and WIA?
As of 2026-08-27, the correlation of weekly returns between TIP and WIA is 0.71 over 3 years, 0.56 over 1 year and 0.64 over 5 years.
Is WIA a good diversifier for TIP?
To a limited degree. At 0.71 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.71 mean?
A reading of 0.71 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-wia.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/tip-vs-wia/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TIP correlations · WIA correlations
