NAD vs TIP: Correlation
How closely do Nuveen Quality Municipal Income Fund (NAD) and iShares TIPS Bond ETF (TIP) trade together? Their weekly returns over three years give a correlation of 0.67, which is strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NAD and TIP?
Over the past 3 years, NAD and TIP moved with a correlation of 0.67, which is strong. Little has changed lately, as the 1-year reading of 0.64 lands near the 3-year figure. Over 5 years the correlation is 0.54, and the annualized covariance of weekly returns is 32.2 %².
Among the 26 assets we track against NAD, TIP ranks #19 by 3-year correlation. On 12-month performance NAD holds a 10.7-point edge, +12.1% against +1.4%. One caveat on sizing: NAD is 2.5 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.
NAD vs TIP: side by side
| NAD (Nuveen Quality Municipal Income Fund) | TIP (iShares TIPS Bond ETF) | |
|---|---|---|
| 1-year return | +12.1% | +1.4% |
| 5-year return | -2.4% | +1.2% |
| Volatility (ann.) | 11.0% | 4.4% |
| Beta vs S&P 500 | 0.27 | 0.05 |
| Max drawdown (3Y) | -11.7% | -3.7% |
| Market cap | $2.7B | – |
| P/E (trailing) | 14.9 | – |
| Dividend yield | 7.38% | 4.47% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $14.6B |
| Sector / category | US Listed | ETF · Bonds |
TIP is an Inflation-Protected Bond fund from iShares: $14.6B under management, a 0.18% expense ratio, a 4.47% trailing dividend yield.
Year-by-year returns
| Year | NAD | TIP |
|---|---|---|
| 2022 | -22.8% | -12.3% |
| 2023 | +1.3% | +3.8% |
| 2024 | +8.8% | +1.7% |
| 2025 | +11.4% | +6.8% |
| 2026 | +2.5% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NAD and TIP good diversifiers for each other?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
FAQ
What is the correlation between NAD and TIP?
As of 2026-08-27, the correlation of weekly returns between NAD and TIP is 0.67 over 3 years, 0.64 over 1 year and 0.54 over 5 years.
Is TIP a good diversifier for NAD?
Somewhat, no more. With 0.67 correlation, most large moves hit both names, and the diversification benefit stays modest.
What does a correlation of 0.67 mean?
A reading of 0.67 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/nad-vs-tip.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nad-vs-tip/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: NAD correlations · TIP correlations
