NVG vs TIP: Correlation
Measured on weekly returns over the past three years, Nuveen AMT-Free Municipal Credit Income Fund (NVG) and iShares TIPS Bond ETF (TIP) carry a correlation of 0.65, a strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are NVG and TIP?
On 3 years of weekly data the NVG/TIP correlation comes out at 0.65, strong. Recent behaviour matches the longer record: 0.66 over 1 year against 0.65 over 3. The 5-year figure is 0.56, and annualized covariance runs at 36.7 %².
Within NVG's tracked universe of 28 assets, TIP comes in at #22 by 3-year correlation. The trailing year gives NVG the advantage: +12.4% versus +1.4%, a 11.0-point spread. One caveat on sizing: NVG is 3.0 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.
NVG vs TIP: side by side
| NVG (Nuveen AMT-Free Municipal Credit Income Fund) | TIP (iShares TIPS Bond ETF) | |
|---|---|---|
| 1-year return | +12.4% | +1.4% |
| 5-year return | -7.8% | +1.2% |
| Volatility (ann.) | 13.0% | 4.4% |
| Beta vs S&P 500 | 0.32 | 0.05 |
| Max drawdown (3Y) | -12.9% | -3.7% |
| Market cap | $2.7B | – |
| P/E (trailing) | 13.8 | – |
| Dividend yield | 7.75% | 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 | NVG | TIP |
|---|---|---|
| 2022 | -28.5% | -12.3% |
| 2023 | +2.0% | +3.8% |
| 2024 | +10.8% | +1.7% |
| 2025 | +11.6% | +6.8% |
| 2026 | +1.9% | +1.1% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are NVG and TIP good diversifiers for each other?
Only partially. A correlation of 0.65 means NVG and TIP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between NVG and TIP?
As of 2026-08-27, the correlation of weekly returns between NVG and TIP is 0.65 over 3 years, 0.66 over 1 year and 0.56 over 5 years.
Is TIP a good diversifier for NVG?
Only partially. A correlation of 0.65 means NVG and TIP share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.65 mean?
A reading of 0.65 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/nvg-vs-tip.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/nvg-vs-tip/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: NVG correlations · TIP correlations
