LQD vs NBB: Correlation
How closely do iShares iBoxx Investment Grade Corporate Bond ETF (LQD) and Nuveen Taxable Municipal Income Fund (NBB) trade together? Their weekly returns over three years give a correlation of 0.70, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LQD and NBB?
On 3 years of weekly data the LQD/NBB correlation comes out at 0.70, strong. The relationship has been stable: the 1-year correlation (0.64) sits close to the 3-year figure. The 5-year figure is 0.69, and annualized covariance runs at 61.0 %².
Among the 33 assets we track against LQD, NBB ranks #14 by 3-year correlation. Their 12-month results are close: +1.5% for LQD against +5.3% for NBB. One caveat on sizing: NBB is 1.6 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 NBB: side by side
| LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | NBB (Nuveen Taxable Municipal Income Fund) | |
|---|---|---|
| 1-year return | +1.5% | +5.3% |
| 5-year return | -4.1% | -5.4% |
| Volatility (ann.) | 7.3% | 12.0% |
| Beta vs S&P 500 | 0.15 | 0.22 |
| Max drawdown (3Y) | -6.7% | -11.4% |
| Market cap | – | – |
| P/E (trailing) | – | 16.4 |
| Dividend yield | 4.66% | 0.00% |
| Expense ratio | 0.14% | – |
| Assets under management | $33.0B | – |
| Sector / category | ETF · Bonds | US Listed |
LQD is a Corporate Bond fund from iShares: $33.0B under management, a 0.14% expense ratio, a 4.66% trailing dividend yield.
Year-by-year returns
| Year | LQD | NBB |
|---|---|---|
| 2022 | -17.9% | -24.6% |
| 2023 | +9.4% | +7.6% |
| 2024 | +0.9% | +1.4% |
| 2025 | +7.9% | +13.6% |
| 2026 | -0.5% | +2.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LQD and NBB good diversifiers for each other?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between LQD and NBB?
The LQD/NBB correlation stands at 0.70 on a 3-year window (1 year: 0.64, 5 years: 0.69), computed from weekly returns as of 2026-08-27.
Is NBB a good diversifier for LQD?
Somewhat, no more. With 0.70 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.70 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/lqd-vs-nbb.json
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[](https://www.pairbook.io/pair/lqd-vs-nbb/)
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Related comparisons
Hubs: LQD correlations · NBB correlations
