LQD vs NAD: Correlation
Measured on weekly returns over the past three years, iShares iBoxx Investment Grade Corporate Bond ETF (LQD) and Nuveen Quality Municipal Income Fund (NAD) carry a correlation of 0.73, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LQD and NAD?
On 3 years of weekly data the LQD/NAD correlation comes out at 0.73, strong. The past 12 months show a weaker link (0.55) than the 3-year average (0.73). The 5-year figure is 0.64, and annualized covariance runs at 58.2 %².
Within LQD's tracked universe of 33 assets, NAD comes in at #9 by 3-year correlation. On 12-month performance NAD holds a 10.6-point edge, +1.5% against +12.1%. One caveat on sizing: NAD is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
LQD vs NAD: side by side
| LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | NAD (Nuveen Quality Municipal Income Fund) | |
|---|---|---|
| 1-year return | +1.5% | +12.1% |
| 5-year return | -4.1% | -2.4% |
| Volatility (ann.) | 7.3% | 11.0% |
| Beta vs S&P 500 | 0.15 | 0.27 |
| Max drawdown (3Y) | -6.7% | -11.7% |
| Market cap | – | $2.7B |
| P/E (trailing) | – | 14.9 |
| Dividend yield | 4.66% | 7.38% |
| Expense ratio | 0.14% | – |
| Assets under management | $33.0B | – |
| Sector / category | ETF · Bonds | US Listed |
On the fund side, LQD sits in the Corporate Bond category at iShares, with $33.0B under management, a 0.14% expense ratio, a 4.66% trailing dividend yield.
Year-by-year returns
| Year | LQD | NAD |
|---|---|---|
| 2022 | -17.9% | -22.8% |
| 2023 | +9.4% | +1.3% |
| 2024 | +0.9% | +8.8% |
| 2025 | +7.9% | +11.4% |
| 2026 | -0.5% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LQD and NAD good diversifiers for each other?
Only partially. A correlation of 0.73 means LQD and NAD 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 LQD and NAD?
Using weekly returns as of 2026-08-27: 0.73 over 3 years, with 0.55 over the last year and 0.64 over 5 years.
Is NAD a good diversifier for LQD?
Only partially. A correlation of 0.73 means LQD and NAD share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.73 mean?
A reading of 0.73 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/lqd-vs-nad.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/lqd-vs-nad/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: LQD correlations · NAD correlations
