BND vs NBB: Correlation
Measured on weekly returns over the past three years, Vanguard Total Bond Market ETF (BND) and Nuveen Taxable Municipal Income Fund (NBB) carry a correlation of 0.72, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BND and NBB?
Over the past 3 years, BND and NBB moved with a correlation of 0.72, which is strong. Recent behaviour matches the longer record: 0.62 over 1 year against 0.72 over 3. Over 5 years the correlation is 0.70, and the annualized covariance of weekly returns is 45.1 %².
By 3-year correlation, NBB places #11 of the 33 assets tracked against BND. Their 12-month results are close: +2.3% for BND against +5.3% for NBB. Note the risk asymmetry: NBB runs 2.3 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.
BND vs NBB: side by side
| BND (Vanguard Total Bond Market ETF) | NBB (Nuveen Taxable Municipal Income Fund) | |
|---|---|---|
| 1-year return | +2.3% | +5.3% |
| 5-year return | -1.3% | -5.4% |
| Volatility (ann.) | 5.2% | 12.0% |
| Beta vs S&P 500 | 0.06 | 0.22 |
| Max drawdown (3Y) | -4.7% | -11.4% |
| Market cap | – | – |
| P/E (trailing) | – | 16.4 |
| Dividend yield | – | 0.00% |
| Sector / category | ETF · Bonds | US Listed |
Year-by-year returns
| Year | BND | NBB |
|---|---|---|
| 2022 | -13.1% | -24.6% |
| 2023 | +5.7% | +7.6% |
| 2024 | +1.4% | +1.4% |
| 2025 | +7.1% | +13.6% |
| 2026 | +0.2% | +2.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BND and NBB good diversifiers for each other?
Only partially. A correlation of 0.72 means BND and NBB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between BND and NBB?
As of 2026-08-27, the correlation of weekly returns between BND and NBB is 0.72 over 3 years, 0.62 over 1 year and 0.70 over 5 years.
Is NBB a good diversifier for BND?
Only partially. A correlation of 0.72 means BND and NBB share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.72 mean?
On the −1 to +1 scale, 0.72 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bnd-vs-nbb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/bnd-vs-nbb/)
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Related comparisons
Hubs: BND correlations · NBB correlations
