TLT vs. ^DXY
TLT (iShares 20+ Year Treasury Bond ETF) is Government Bonds fund tracking the ICE U.S. Treasury 20+ Year Bond Index, while ^DXY (US Dollar Currency Index) is an index. Over the past 10 years, TLT returned -1.56%/yr vs 0.57%/yr for ^DXY. At a correlation of -0.11, they often move in opposite directions.
Performance
TLT vs. ^DXY - Performance Comparison
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Returns By Period
In the year-to-date period, TLT achieves a -0.05% return, which is significantly lower than ^DXY's 1.13% return. Over the past 10 years, TLT has underperformed ^DXY with an annualized return of -1.56%, while ^DXY has yielded a comparatively higher 0.57% annualized return.
TLT
- 1D
- 0.22%
- 1M
- 0.48%
- YTD
- -0.05%
- 6M
- -1.27%
- 1Y
- 3.48%
- 3Y*
- -1.67%
- 5Y*
- -6.27%
- 10Y*
- -1.56%
^DXY
- 1D
- -0.10%
- 1M
- 1.00%
- YTD
- 1.13%
- 6M
- 0.45%
- 1Y
- 0.65%
- 3Y*
- -1.49%
- 5Y*
- 1.98%
- 10Y*
- 0.57%
TLT vs. ^DXY - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
TLT iShares 20+ Year Treasury Bond ETF | -0.05% | 4.25% | -8.05% | 2.77% | -31.23% | -4.60% | 18.15% | 14.12% | -1.61% | 9.18% |
^DXY US Dollar Currency Index | 1.13% | -9.37% | 7.06% | -2.11% | 7.87% | 6.71% | -6.69% | 0.22% | 4.40% | -9.87% |
Correlation
The correlation between TLT and ^DXY 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 | -0.23 |
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 TLT and ^DXY 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.
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Return for Risk
TLT vs. ^DXY — Risk / Return Rank
TLT
^DXY
TLT vs. ^DXY - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares 20+ Year Treasury Bond ETF (TLT) and US Dollar Currency Index (^DXY). 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.
| TLT | ^DXY | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.25 | ||
| Sortino ratioReturn per unit of downside risk | +0.39 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.02 | +0.04 |
| Calmar ratioReturn relative to maximum drawdown | 0.46 | 0.16 | +0.30 |
| Martin ratioReturn relative to average drawdown | 1.14 | 0.36 | +0.78 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| TLT | ^DXY | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.36 | 0.11 | +0.25 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.40 | 0.28 | -0.67 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.11 | 0.09 | -0.19 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.26 | -0.08 | +0.33 |
Drawdowns
TLT vs. ^DXY - Drawdown Comparison
The maximum TLT drawdown since its inception was -48.35%, which is greater than ^DXY's maximum drawdown of -45.13%. Use the drawdown chart below to compare losses from any high point for TLT and ^DXY.
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Drawdown Indicators
| TLT | ^DXY | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -48.35% | -45.13% | -3.22% |
Max Drawdown (1Y)Largest decline over 1 year | -7.58% | -4.00% | -3.58% |
Max Drawdown (3Y)Largest decline over 3 years | -19.18% | -12.49% | -6.69% |
Max Drawdown (5Y)Largest decline over 5 years | -43.70% | -15.68% | -28.02% |
Max Drawdown (10Y)Largest decline over 10 years | -48.35% | -15.68% | -32.67% |
Current DrawdownCurrent decline from peak | -40.31% | -23.51% | -16.80% |
Average DrawdownAverage peak-to-trough decline | -13.82% | -28.17% | +14.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.05% | 1.76% | +1.29% |
Volatility
TLT vs. ^DXY - Volatility Comparison
iShares 20+ Year Treasury Bond ETF (TLT) has a higher volatility of 2.71% compared to US Dollar Currency Index (^DXY) at 0.94%. This indicates that TLT's price experiences larger fluctuations and is considered to be riskier than ^DXY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| TLT | ^DXY | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 2.71% | 0.94% | +1.77% |
Volatility (6M)Calculated over the trailing 6-month period | 6.50% | 3.91% | +2.59% |
Volatility (1Y)Calculated over the trailing 1-year period | 9.77% | 5.70% | +4.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 15.86% | 6.97% | +8.89% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 14.90% | 6.49% | +8.41% |
Frequently Asked Questions
TLT and ^DXY 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.
TLT has higher volatility (2.71%) compared to ^DXY (0.94%). In terms of maximum drawdown, TLT dropped -48.35% vs ^DXY's -45.13%.
TLT currently has the higher Sharpe Ratio (0.36 vs 0.11), 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.
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