^DXY vs. TLT

Last updated Jun 3, 2026

^DXY (US Dollar Currency Index) is an index, while TLT (iShares 20+ Year Treasury Bond ETF) is Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index. Over the past 10 years, ^DXY returned 0.54%/yr vs -1.62%/yr for TLT. At a correlation of -0.11, they often move in opposite directions.

Performance

^DXY vs. TLT - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in US Dollar Currency Index (^DXY) and iShares 20+ Year Treasury Bond ETF (TLT). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ^DXY achieves a 0.93% return, which is significantly higher than TLT's 0.13% return. Over the past 10 years, ^DXY has outperformed TLT with an annualized return of 0.54%, while TLT has yielded a comparatively lower -1.62% annualized return.

^DXY

• 1D: 0.04%
• 1M: 1.10%
• YTD: 0.93%
• 6M: -0.12%
• 1Y: 0.54%
• 3Y*: -1.55%
• 5Y*: 1.86%
• 10Y*: 0.54%

TLT

• 1D: 0.21%
• 1M: 0.44%
• YTD: 0.13%
• 6M: -1.35%
• 1Y: 5.16%
• 3Y*: -1.67%
• 5Y*: -5.98%
• 10Y*: -1.62%

*Multi-year figures are annualized to reflect compound growth (CAGR)

^DXY vs. TLT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
^DXY US Dollar Currency Index	0.93%	-9.37%	7.06%	-2.11%	7.87%	6.71%	-6.69%	0.22%	4.40%	-9.87%
TLT iShares 20+ Year Treasury Bond ETF	0.13%	4.25%	-8.05%	2.77%	-31.23%	-4.60%	18.15%	14.12%	-1.61%	9.18%

Correlation

The correlation between ^DXY and TLT is -0.37, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.37
Correlation (3Y) Calculated over the trailing 3-year period	-0.33
Correlation (5Y) Calculated over the trailing 5-year period	-0.24
Correlation (10Y) Calculated over the trailing 10-year period	-0.18
Correlation (All Time) Calculated using the full available price history since Jul 29, 2002	-0.11

Over the past year, the inverse relationship between ^DXY and TLT has strengthened: their correlation has moved from -0.11 to -0.37, meaning they now move in opposite directions more often than their long-term average.

Return for Risk

^DXY vs. TLT — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

^DXY

^DXY Risk / Return Rank: 13
^DXY Sharpe Ratio Rank: 13
^DXY Sortino Ratio Rank: 10
^DXY Omega Ratio Rank: 10
^DXY Calmar Ratio Rank: 17
^DXY Martin Ratio Rank: 17

TLT

TLT Risk / Return Rank: 16
TLT Sharpe Ratio Rank: 17
TLT Sortino Ratio Rank: 17
TLT Omega Ratio Rank: 16
TLT Calmar Ratio Rank: 15
TLT Martin Ratio Rank: 15

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

^DXY vs. TLT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for US Dollar Currency Index (^DXY) and iShares 20+ Year Treasury Bond ETF (TLT). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	^DXY	TLT	Difference
Sharpe ratio Return per unit of total volatility	0.09	0.53	-0.44
Sortino ratio Return per unit of downside risk	0.17	0.83	-0.67
Omega ratio Gain probability vs. loss probability	1.02	1.09	-0.07
Calmar ratio Return relative to maximum drawdown	0.15	0.55	-0.40
Martin ratio Return relative to average drawdown	0.35	1.38	-1.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

^DXY vs. TLT - Sharpe Ratio Comparison

The current ^DXY Sharpe Ratio is 0.09, which is lower than the TLT Sharpe Ratio of 0.53. The chart below compares the historical Sharpe Ratios of ^DXY and TLT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	^DXY	TLT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.09	0.53	-0.44
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.26	-0.38	+0.64
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.08	-0.11	+0.19
Sharpe Ratio (All Time) Calculated using the full available price history	-0.08	0.26	-0.33

Drawdowns

^DXY vs. TLT - Drawdown Comparison

The maximum ^DXY drawdown since its inception was -45.13%, smaller than the maximum TLT drawdown of -48.35%. Use the drawdown chart below to compare losses from any high point for ^DXY and TLT.

Drawdown Indicators

	^DXY	TLT	Difference
Max Drawdown Largest peak-to-trough decline	-45.13%	-48.35%	+3.22%
Max Drawdown (1Y) Largest decline over 1 year	-4.00%	-7.58%	+3.58%
Max Drawdown (3Y) Largest decline over 3 years	-12.49%	-19.18%	+6.69%
Max Drawdown (5Y) Largest decline over 5 years	-15.68%	-43.70%	+28.02%
Max Drawdown (10Y) Largest decline over 10 years	-15.68%	-48.35%	+32.67%
Current Drawdown Current decline from peak	-23.66%	-40.20%	+16.54%
Average Drawdown Average peak-to-trough decline	-28.17%	-13.81%	-14.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.75%	3.02%	-1.27%

Volatility

^DXY vs. TLT - Volatility Comparison

The current volatility for US Dollar Currency Index (^DXY) is 1.02%, while iShares 20+ Year Treasury Bond ETF (TLT) has a volatility of 2.84%. This indicates that ^DXY experiences smaller price fluctuations and is considered to be less risky than TLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	^DXY	TLT	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.02%	2.84%	-1.82%
Volatility (6M) Calculated over the trailing 6-month period	3.89%	6.60%	-2.71%
Volatility (1Y) Calculated over the trailing 1-year period	5.75%	9.81%	-4.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	6.98%	15.87%	-8.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	6.49%	14.91%	-8.42%

Frequently Asked Questions

Can I hold both ^DXY and TLT in my portfolio?

^DXY and TLT have a correlation of -0.37, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ^DXY or TLT?

TLT has higher volatility (2.84%) compared to ^DXY (1.02%). In terms of maximum drawdown, ^DXY dropped -45.13% vs TLT's -48.35%.

Which has better risk-adjusted returns?

TLT currently has the higher Sharpe Ratio (0.53 vs 0.09), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.