NBB vs TIP: Correlation
How closely do Nuveen Taxable Municipal Income Fund (NBB) and iShares TIPS Bond ETF (TIP) 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 NBB and TIP?
Over the past 3 years, NBB and TIP moved with a correlation of 0.70, which is strong. Little has changed lately, as the 1-year reading of 0.66 lands near the 3-year figure. Over 5 years the correlation is 0.61, and the annualized covariance of weekly returns is 36.4 %².
Within NBB's tracked universe of 19 assets, TIP comes in at #11 by 3-year correlation. Neither side won the trailing year by much: +5.3% against +1.4%. Risk is not evenly split, since NBB carries 2.7 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.
NBB vs TIP: side by side
| NBB (Nuveen Taxable Municipal Income Fund) | TIP (iShares TIPS Bond ETF) | |
|---|---|---|
| 1-year return | +5.3% | +1.4% |
| 5-year return | -5.4% | +1.2% |
| Volatility (ann.) | 12.0% | 4.4% |
| Beta vs S&P 500 | 0.22 | 0.05 |
| Max drawdown (3Y) | -11.4% | -3.7% |
| Market cap | – | – |
| P/E (trailing) | 16.4 | – |
| Dividend yield | 0.00% | 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 | NBB | TIP |
|---|---|---|
| 2022 | -24.6% | -12.3% |
| 2023 | +7.6% | +3.8% |
| 2024 | +1.4% | +1.7% |
| 2025 | +13.6% | +6.8% |
| 2026 | +2.4% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NBB and TIP good diversifiers for each other?
To a limited degree. At 0.70 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
FAQ
What is the correlation between NBB and TIP?
The NBB/TIP correlation stands at 0.70 on a 3-year window (1 year: 0.66, 5 years: 0.61), computed from weekly returns as of 2026-08-27.
Is TIP a good diversifier for NBB?
To a limited degree. At 0.70 the two still catch most of the same waves, so the pair smooths returns a little without insulating either from a shared selloff.
What does a correlation of 0.70 mean?
A reading of 0.70 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/nbb-vs-tip.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nbb-vs-tip/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: NBB correlations · TIP correlations
