BBN vs BND: Correlation
BlackRock Taxable Municipal Bond Trust (BBN) and Vanguard Total Bond Market ETF (BND) show a strong relationship: their 3-year correlation of weekly returns is 0.74.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BBN and BND?
Over the past 3 years, BBN and BND moved with a correlation of 0.74, which is strong. Little has changed lately, as the 1-year reading of 0.65 lands near the 3-year figure. Over 5 years the correlation is 0.72, and the annualized covariance of weekly returns is 47.3 %².
BND is one of the assets that tracks BBN most closely: it ranks #3 out of the 18 assets we track against BBN. Neither side won the trailing year by much: +4.4% against +2.3%. Note the risk asymmetry: BBN runs 2.4 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.
BBN vs BND: side by side
| BBN (BlackRock Taxable Municipal Bond Trust) | BND (Vanguard Total Bond Market ETF) | |
|---|---|---|
| 1-year return | +4.4% | +2.3% |
| 5-year return | -14.4% | -1.3% |
| Volatility (ann.) | 12.3% | 5.2% |
| Beta vs S&P 500 | 0.26 | 0.06 |
| Max drawdown (3Y) | -11.8% | -4.7% |
| Market cap | $1.0B | – |
| P/E (trailing) | 12.5 | – |
| Dividend yield | 0.00% | – |
| Sector / category | US Listed | ETF · Bonds |
Year-by-year returns
| Year | BBN | BND |
|---|---|---|
| 2022 | -31.0% | -13.1% |
| 2023 | +3.6% | +5.7% |
| 2024 | +6.0% | +1.4% |
| 2025 | +8.6% | +7.1% |
| 2026 | +2.3% | +0.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BBN and BND good diversifiers for each other?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between BBN and BND?
The BBN/BND correlation stands at 0.74 on a 3-year window (1 year: 0.65, 5 years: 0.72), computed from weekly returns as of 2026-08-27.
Is BND a good diversifier for BBN?
Somewhat, no more. With 0.74 correlation, most large moves hit both names, and the diversification benefit stays modest.
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/bbn-vs-bnd.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bbn-vs-bnd/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: BBN correlations · BND correlations
