AGG vs NBB: Correlation
Measured on weekly returns over the past three years, iShares Core US Aggregate Bond ETF (AGG) and Nuveen Taxable Municipal Income Fund (NBB) carry a correlation of 0.73, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and NBB?
Across a 3-year window, the weekly returns of AGG and NBB correlate at 0.73, strong. The relationship has been stable: the 1-year correlation (0.63) sits close to the 3-year figure. Stretching to 5 years gives 0.70, with an annualized covariance of 46.4 %².
Among the 34 assets we track against AGG, NBB ranks #11 by 3-year correlation. Neither side won the trailing year by much: +2.3% against +5.3%. Risk is not evenly split, since NBB carries 2.3 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.
AGG vs NBB: side by side
| AGG (iShares Core US Aggregate Bond ETF) | NBB (Nuveen Taxable Municipal Income Fund) | |
|---|---|---|
| 1-year return | +2.3% | +5.3% |
| 5-year return | -1.1% | -5.4% |
| Volatility (ann.) | 5.3% | 12.0% |
| Beta vs S&P 500 | 0.07 | 0.22 |
| Max drawdown (3Y) | -4.8% | -11.4% |
| Market cap | – | – |
| P/E (trailing) | – | 16.4 |
| Dividend yield | 4.05% | 0.00% |
| Expense ratio | 0.03% | – |
| Assets under management | $137.1B | – |
| Sector / category | ETF · Bonds | US Listed |
AGG is an Intermediate Core Bond fund from iShares: $137.1B under management, a 0.03% expense ratio, a 4.05% trailing dividend yield.
Year-by-year returns
| Year | AGG | NBB |
|---|---|---|
| 2022 | -13.0% | -24.6% |
| 2023 | +5.7% | +7.6% |
| 2024 | +1.3% | +1.4% |
| 2025 | +7.2% | +13.6% |
| 2026 | +0.3% | +2.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and NBB good diversifiers for each other?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AGG and NBB?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.63 over the last year and 0.70 over 5 years.
Is NBB a good diversifier for AGG?
Somewhat, no more. With 0.73 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.73 mean?
A reading of 0.73 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: AGG correlations · NBB correlations
