BND vs NVG: Correlation
Measured on weekly returns over the past three years, Vanguard Total Bond Market ETF (BND) and Nuveen AMT-Free Municipal Credit Income Fund (NVG) carry a correlation of 0.69, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BND and NVG?
Across a 3-year window, the weekly returns of BND and NVG correlate at 0.69, strong. Little has changed lately, as the 1-year reading of 0.61 lands near the 3-year figure. Stretching to 5 years gives 0.62, with an annualized covariance of 46.8 %².
Among the 33 assets we track against BND, NVG ranks #14 by 3-year correlation. Over the last 12 months NVG came out ahead by 10.1 percentage points (+2.3% against +12.4%). Note the risk asymmetry: NVG runs 2.5 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 NVG: side by side
| BND (Vanguard Total Bond Market ETF) | NVG (Nuveen AMT-Free Municipal Credit Income Fund) | |
|---|---|---|
| 1-year return | +2.3% | +12.4% |
| 5-year return | -1.3% | -7.8% |
| Volatility (ann.) | 5.2% | 13.0% |
| Beta vs S&P 500 | 0.06 | 0.32 |
| Max drawdown (3Y) | -4.7% | -12.9% |
| Market cap | – | $2.7B |
| P/E (trailing) | – | 13.8 |
| Dividend yield | – | 7.75% |
| Sector / category | ETF · Bonds | US Listed |
Year-by-year returns
| Year | BND | NVG |
|---|---|---|
| 2022 | -13.1% | -28.5% |
| 2023 | +5.7% | +2.0% |
| 2024 | +1.4% | +10.8% |
| 2025 | +7.1% | +11.6% |
| 2026 | +0.2% | +1.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BND and NVG good diversifiers for each other?
Only partially. A correlation of 0.69 means BND and NVG 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 NVG?
Using weekly returns as of 2026-08-27: 0.69 over 3 years, with 0.61 over the last year and 0.62 over 5 years.
Is NVG a good diversifier for BND?
Only partially. A correlation of 0.69 means BND and NVG share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.69 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/bnd-vs-nvg.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/bnd-vs-nvg/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: BND correlations · NVG correlations
