NMI vs QQQ: Correlation
Measured on weekly returns over the past three years, Nuveen Municipal Income Fund, Inc. (NMI) and Invesco QQQ Trust (QQQ) carry a correlation of 0.18, a weak link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NMI and QQQ?
On 3 years of weekly data the NMI/QQQ correlation comes out at 0.18, weak. Lately the two have moved closer together, with the 1-year correlation at 0.29 versus 0.18 over 3 years. The 5-year figure is 0.21, and annualized covariance runs at 45.7 %².
QQQ is close to the least connected end of NMI's tracked universe, ranking #8 of 12. The trailing year gives QQQ the advantage: +11.4% versus +26.3%, a 14.9-point spread. Note the risk asymmetry: QQQ runs 1.5 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
NMI vs QQQ: side by side
| NMI (Nuveen Municipal Income Fund, Inc.) | QQQ (Invesco QQQ Trust) | |
|---|---|---|
| 1-year return | +11.4% | +26.3% |
| 5-year return | +8.0% | +95.4% |
| Volatility (ann.) | 12.7% | 19.6% |
| Beta vs S&P 500 | 0.20 | 1.28 |
| Max drawdown (3Y) | -11.0% | -22.8% |
| Market cap | – | – |
| P/E (trailing) | 18.2 | – |
| Dividend yield | 4.38% | 0.44% |
| Expense ratio | – | 0.18% |
| Assets under management | – | $452.8B |
| Sector / category | US Listed | ETF · US Growth & Tech |
QQQ is a Large Growth fund from Invesco: $452.8B under management, 104 holdings, a 0.18% expense ratio, a 0.44% trailing dividend yield.
Year-by-year returns
| Year | NMI | QQQ |
|---|---|---|
| 2022 | -15.0% | -32.6% |
| 2023 | +1.9% | +54.9% |
| 2024 | +7.0% | +25.6% |
| 2025 | +10.5% | +20.8% |
| 2026 | +7.8% | +17.7% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NMI and QQQ good diversifiers for each other?
Yes. With a correlation of 0.18, NMI and QQQ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between NMI and QQQ?
The NMI/QQQ correlation stands at 0.18 on a 3-year window (1 year: 0.29, 5 years: 0.21), computed from weekly returns as of 2026-08-27.
Is QQQ a good diversifier for NMI?
Yes. With a correlation of 0.18, NMI and QQQ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of 0.18 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: NMI correlations · QQQ correlations
