AGG vs NEA: Correlation
How closely do iShares Core US Aggregate Bond ETF (AGG) and Nuveen AMT-Free Quality Municipal Income Fund (NEA) trade together? Their weekly returns over three years give a correlation of 0.70, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and NEA?
On 3 years of weekly data the AGG/NEA correlation comes out at 0.70, strong. Little has changed lately, as the 1-year reading of 0.60 lands near the 3-year figure. The 5-year figure is 0.60, and annualized covariance runs at 40.4 %².
By 3-year correlation, NEA places #14 of the 34 assets tracked against AGG. The trailing year gives NEA the advantage: +2.3% versus +10.4%, a 8.1-point spread. One caveat on sizing: NEA is 2.1 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 NEA: side by side
| AGG (iShares Core US Aggregate Bond ETF) | NEA (Nuveen AMT-Free Quality Municipal Income Fund) | |
|---|---|---|
| 1-year return | +2.3% | +10.4% |
| 5-year return | -1.1% | -4.4% |
| Volatility (ann.) | 5.3% | 10.9% |
| Beta vs S&P 500 | 0.07 | 0.28 |
| Max drawdown (3Y) | -4.8% | -11.3% |
| Market cap | – | $3.4B |
| P/E (trailing) | – | 14.5 |
| Dividend yield | 4.05% | 7.70% |
| 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 | NEA |
|---|---|---|
| 2022 | -13.0% | -23.3% |
| 2023 | +5.7% | +0.8% |
| 2024 | +1.3% | +9.5% |
| 2025 | +7.2% | +11.3% |
| 2026 | +0.3% | +1.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and NEA good diversifiers for each other?
To a limited degree. At 0.70 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 NEA?
The AGG/NEA correlation stands at 0.70 on a 3-year window (1 year: 0.60, 5 years: 0.60), computed from weekly returns as of 2026-08-27.
Is NEA a good diversifier for AGG?
To a limited degree. At 0.70 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 0.70 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-nea.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/agg-vs-nea/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AGG correlations · NEA correlations
