AGG vs BBN: Correlation
Measured on weekly returns over the past three years, iShares Core US Aggregate Bond ETF (AGG) and BlackRock Taxable Municipal Bond Trust (BBN) carry a correlation of 0.74, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and BBN?
Across a 3-year window, the weekly returns of AGG and BBN correlate at 0.74, strong. Little has changed lately, as the 1-year reading of 0.65 lands near the 3-year figure. Stretching to 5 years gives 0.72, with an annualized covariance of 48.3 %².
Among the 34 assets we track against AGG, BBN ranks #8 by 3-year correlation. Neither side won the trailing year by much: +2.3% against +4.4%. One caveat on sizing: BBN is 2.3 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.
AGG vs BBN: side by side
| AGG (iShares Core US Aggregate Bond ETF) | BBN (BlackRock Taxable Municipal Bond Trust) | |
|---|---|---|
| 1-year return | +2.3% | +4.4% |
| 5-year return | -1.1% | -14.4% |
| Volatility (ann.) | 5.3% | 12.3% |
| Beta vs S&P 500 | 0.07 | 0.26 |
| Max drawdown (3Y) | -4.8% | -11.8% |
| Market cap | – | $1.0B |
| P/E (trailing) | – | 12.5 |
| Dividend yield | 4.05% | 0.00% |
| Expense ratio | 0.03% | – |
| Assets under management | $137.1B | – |
| Sector / category | ETF · Bonds | US Listed |
On the fund side, AGG sits in the Intermediate Core Bond category at iShares, with $137.1B under management, a 0.03% expense ratio, a 4.05% trailing dividend yield.
Year-by-year returns
| Year | AGG | BBN |
|---|---|---|
| 2022 | -13.0% | -31.0% |
| 2023 | +5.7% | +3.6% |
| 2024 | +1.3% | +6.0% |
| 2025 | +7.2% | +8.6% |
| 2026 | +0.3% | +2.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and BBN good diversifiers for each other?
To a limited degree. At 0.74 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 AGG and BBN?
Using weekly returns as of 2026-08-27: 0.74 over 3 years, with 0.65 over the last year and 0.72 over 5 years.
Is BBN a good diversifier for AGG?
To a limited degree. At 0.74 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 0.74 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/agg-vs-bbn.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/agg-vs-bbn/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AGG correlations · BBN correlations
