IEF vs NZF: Correlation
Measured on weekly returns over the past three years, iShares 7-10 Year Treasury Bond ETF (IEF) and Nuveen Municipal Credit Income Fund (NZF) carry a correlation of 0.68, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEF and NZF?
Over the past 3 years, IEF and NZF moved with a correlation of 0.68, which is strong. The link has loosened recently: the 1-year correlation (0.56) runs below the 3-year figure (0.68). Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 51.5 %².
Among the 48 assets we track against IEF, NZF ranks #12 by 3-year correlation. The trailing year gives NZF the advantage: +0.9% versus +10.8%, a 9.9-point spread. Risk is not evenly split, since NZF carries 1.8 times the volatility of the other side.
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.
IEF vs NZF: side by side
| IEF (iShares 7-10 Year Treasury Bond ETF) | NZF (Nuveen Municipal Credit Income Fund) | |
|---|---|---|
| 1-year return | +0.9% | +10.8% |
| 5-year return | -7.9% | -4.1% |
| Volatility (ann.) | 6.5% | 11.6% |
| Beta vs S&P 500 | 0.04 | 0.30 |
| Max drawdown (3Y) | -6.9% | -12.4% |
| Market cap | – | $2.4B |
| P/E (trailing) | – | 13.5 |
| Dividend yield | 3.96% | 7.80% |
| Expense ratio | 0.15% | – |
| Assets under management | $47.2B | – |
| Sector / category | ETF · Bonds | US Listed |
On the fund side, IEF sits in the Long Government category at iShares, with $47.2B under management, a 0.15% expense ratio, a 3.96% trailing dividend yield.
Year-by-year returns
| Year | IEF | NZF |
|---|---|---|
| 2022 | -15.2% | -25.5% |
| 2023 | +3.6% | +2.5% |
| 2024 | -0.6% | +10.1% |
| 2025 | +8.0% | +11.8% |
| 2026 | -0.8% | +2.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEF and NZF good diversifiers for each other?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between IEF and NZF?
As of 2026-08-27, the correlation of weekly returns between IEF and NZF is 0.68 over 3 years, 0.56 over 1 year and 0.54 over 5 years.
Is NZF a good diversifier for IEF?
Somewhat, no more. With 0.68 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.68 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/ief-vs-nzf.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ief-vs-nzf/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IEF correlations · NZF correlations
