NAD vs VGM: Correlation
How closely do Nuveen Quality Municipal Income Fund (NAD) and Invesco Trust for Investment Grade Municipals (VGM) trade together? Their weekly returns over three years give a correlation of 0.85, which is very strong.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NAD and VGM?
On 3 years of weekly data the NAD/VGM correlation comes out at 0.85, very strong, meaning they move nearly in lockstep. Little has changed lately, as the 1-year reading of 0.84 lands near the 3-year figure. The 5-year figure is 0.87, and annualized covariance runs at 114.6 %².
By 3-year correlation, VGM places #5 of the 26 assets tracked against NAD. Over the last 12 months VGM came out ahead by 5.2 percentage points (+12.1% against +17.3%).
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 VGM: side by side
| NAD (Nuveen Quality Municipal Income Fund) | VGM (Invesco Trust for Investment Grade Municipals) | |
|---|---|---|
| 1-year return | +12.1% | +17.3% |
| 5-year return | -2.4% | -0.8% |
| Volatility (ann.) | 11.0% | 12.2% |
| Beta vs S&P 500 | 0.27 | 0.30 |
| Max drawdown (3Y) | -11.7% | -11.5% |
| Market cap | $2.7B | $0.6B |
| P/E (trailing) | 14.9 | 33.5 |
| Dividend yield | 7.38% | 7.51% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | NAD | VGM |
|---|---|---|
| 2022 | -22.8% | -24.2% |
| 2023 | +1.3% | +3.0% |
| 2024 | +8.8% | +8.8% |
| 2025 | +11.4% | +11.1% |
| 2026 | +2.5% | +5.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NAD and VGM good diversifiers for each other?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
FAQ
What is the correlation between NAD and VGM?
As of 2026-08-27, the correlation of weekly returns between NAD and VGM is 0.85 over 3 years, 0.84 over 1 year and 0.87 over 5 years.
Is VGM a good diversifier for NAD?
Not really. At 0.85, the two trade almost as one position, and owning both buys little extra protection.
What does a correlation of 0.85 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
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Related comparisons
Hubs: NAD correlations · VGM correlations
