AGG vs NZF: Correlation
iShares Core US Aggregate Bond ETF (AGG) and Nuveen Municipal Credit Income Fund (NZF) show a strong relationship: their 3-year correlation of weekly returns is 0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and NZF?
On 3 years of weekly data the AGG/NZF correlation comes out at 0.72, strong. Lately the two have drifted apart, with the 1-year correlation at 0.59 versus 0.72 over 3 years. The 5-year figure is 0.62, and annualized covariance runs at 44.2 %².
Among the 34 assets we track against AGG, NZF ranks #12 by 3-year correlation. Over the last 12 months NZF came out ahead by 8.5 percentage points (+2.3% against +10.8%). Note the risk asymmetry: NZF runs 2.2 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 NZF: side by side
| AGG (iShares Core US Aggregate Bond ETF) | NZF (Nuveen Municipal Credit Income Fund) | |
|---|---|---|
| 1-year return | +2.3% | +10.8% |
| 5-year return | -1.1% | -4.1% |
| Volatility (ann.) | 5.3% | 11.6% |
| Beta vs S&P 500 | 0.07 | 0.30 |
| Max drawdown (3Y) | -4.8% | -12.4% |
| Market cap | – | $2.4B |
| P/E (trailing) | – | 13.5 |
| Dividend yield | 4.05% | 7.80% |
| 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 | NZF |
|---|---|---|
| 2022 | -13.0% | -25.5% |
| 2023 | +5.7% | +2.5% |
| 2024 | +1.3% | +10.1% |
| 2025 | +7.2% | +11.8% |
| 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 NZF good diversifiers for each other?
Somewhat, no more. With 0.72 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between AGG and NZF?
The AGG/NZF correlation stands at 0.72 on a 3-year window (1 year: 0.59, 5 years: 0.62), computed from weekly returns as of 2026-08-27.
Is NZF a good diversifier for AGG?
Somewhat, no more. With 0.72 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.72 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-nzf.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/agg-vs-nzf/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: AGG correlations · NZF correlations
