BND vs NZF: Correlation
Measured on weekly returns over the past three years, Vanguard Total Bond Market ETF (BND) and Nuveen Municipal Credit Income Fund (NZF) carry a correlation of 0.71, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BND and NZF?
On 3 years of weekly data the BND/NZF correlation comes out at 0.71, strong. The past 12 months show a weaker link (0.57) than the 3-year average (0.71). The 5-year figure is 0.62, and annualized covariance runs at 43.0 %².
Among the 33 assets we track against BND, NZF ranks #12 by 3-year correlation. On 12-month performance NZF holds a 8.5-point edge, +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.
BND vs NZF: side by side
| BND (Vanguard Total Bond Market ETF) | NZF (Nuveen Municipal Credit Income Fund) | |
|---|---|---|
| 1-year return | +2.3% | +10.8% |
| 5-year return | -1.3% | -4.1% |
| Volatility (ann.) | 5.2% | 11.6% |
| Beta vs S&P 500 | 0.06 | 0.30 |
| Max drawdown (3Y) | -4.7% | -12.4% |
| Market cap | – | $2.4B |
| P/E (trailing) | – | 13.5 |
| Dividend yield | – | 7.80% |
| Sector / category | ETF · Bonds | US Listed |
Year-by-year returns
| Year | BND | NZF |
|---|---|---|
| 2022 | -13.1% | -25.5% |
| 2023 | +5.7% | +2.5% |
| 2024 | +1.4% | +10.1% |
| 2025 | +7.1% | +11.8% |
| 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 NZF good diversifiers for each other?
To a limited degree. At 0.71 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 BND and NZF?
As of 2026-08-27, the correlation of weekly returns between BND and NZF is 0.71 over 3 years, 0.57 over 1 year and 0.62 over 5 years.
Is NZF a good diversifier for BND?
To a limited degree. At 0.71 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 0.71 mean?
On the −1 to +1 scale, 0.71 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-nzf.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bnd-vs-nzf/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: BND correlations · NZF correlations
