BAB vs. NAD
BAB (Invesco Taxable Municipal Bond ETF) is Municipal Bonds fund tracking the BofA Merrill Lynch Build America Bond Index, while NAD (Nuveen Quality Municipal Income Fund) is a stock. Over the past 10 years, BAB returned 2.15%/yr vs 2.83%/yr for NAD. At a 0.30 correlation, their price movements are largely independent.
Performance
BAB vs. NAD - Performance Comparison
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Returns By Period
In the year-to-date period, BAB achieves a 0.44% return, which is significantly lower than NAD's 2.65% return. Over the past 10 years, BAB has underperformed NAD with an annualized return of 2.15%, while NAD has yielded a comparatively higher 2.83% annualized return.
BAB
- 1D
- -0.28%
- 1M
- 1.15%
- YTD
- 0.44%
- 6M
- 0.52%
- 1Y
- 6.36%
- 3Y*
- 4.32%
- 5Y*
- -0.56%
- 10Y*
- 2.15%
NAD
- 1D
- -0.50%
- 1M
- 3.02%
- YTD
- 2.65%
- 6M
- 2.48%
- 1Y
- 14.73%
- 3Y*
- 9.13%
- 5Y*
- 0.16%
- 10Y*
- 2.83%
BAB vs. NAD - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 0.44% | 8.30% | 1.03% | 8.67% | -19.50% | 1.00% | 9.11% | 10.85% | 0.93% | 9.87% |
NAD Nuveen Quality Municipal Income Fund | 2.65% | 11.29% | 8.74% | 1.26% | -22.85% | 9.70% | 10.33% | 21.92% | -6.10% | 6.37% |
Correlation
The correlation between BAB and NAD is 0.36, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.36 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.49 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.46 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.40 |
Correlation (All Time) Calculated using the full available price history since Nov 17, 2009 | 0.30 |
The correlation between BAB and NAD shifts across timeframes, from 0.30 (all time) to 0.49 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
BAB vs. NAD — Risk / Return Rank
BAB
NAD
BAB vs. NAD - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Taxable Municipal Bond ETF (BAB) and Nuveen Quality Municipal Income Fund (NAD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| BAB | NAD | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.22 | ||
| Sortino ratioReturn per unit of downside risk | -0.25 | ||
| Omega ratioGain probability vs. loss probability | 1.20 | 1.27 | -0.07 |
| Calmar ratioReturn relative to maximum drawdown | 1.54 | 1.83 | -0.29 |
| Martin ratioReturn relative to average drawdown | 4.14 | 7.18 | -3.04 |
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Drawdowns
BAB vs. NAD - Drawdown Comparison
The maximum BAB drawdown since its inception was -27.80%, smaller than the maximum NAD drawdown of -44.65%. Use the drawdown chart below to compare losses from any high point for BAB and NAD.
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Drawdown Indicators
| BAB | NAD | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -27.80% | -44.65% | +16.85% |
Max Drawdown (1Y)Largest decline over 1 year | -4.15% | -8.08% | +3.93% |
Max Drawdown (3Y)Largest decline over 3 years | -7.57% | -14.69% | +7.12% |
Max Drawdown (5Y)Largest decline over 5 years | -24.95% | -35.58% | +10.63% |
Max Drawdown (10Y)Largest decline over 10 years | -27.80% | -35.58% | +7.78% |
Current DrawdownCurrent decline from peak | -5.34% | -3.47% | -1.87% |
Average DrawdownAverage peak-to-trough decline | -5.31% | -7.82% | +2.51% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.54% | 2.06% | -0.52% |
Volatility
BAB vs. NAD - Volatility Comparison
The current volatility for Invesco Taxable Municipal Bond ETF (BAB) is 0.98%, while Nuveen Quality Municipal Income Fund (NAD) has a volatility of 3.00%. This indicates that BAB experiences smaller price fluctuations and is considered to be less risky than NAD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BAB | NAD | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 0.98% | 3.00% | -2.02% |
Volatility (6M)Calculated over the trailing 6-month period | 3.75% | 9.40% | -5.65% |
Volatility (1Y)Calculated over the trailing 1-year period | 5.67% | 11.02% | -5.35% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 8.31% | 11.63% | -3.32% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 9.70% | 11.94% | -2.24% |
Dividends
BAB vs. NAD - Dividend Comparison
BAB's dividend yield for the trailing twelve months is around 4.46%, less than NAD's 7.19% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BAB Invesco Taxable Municipal Bond ETF | 4.46% | 3.96% | 3.97% | 3.65% | 3.40% | 2.63% | 2.96% | 3.77% | 4.20% | 3.96% | 4.26% | 4.71% |
NAD Nuveen Quality Municipal Income Fund | 7.19% | 7.37% | 6.63% | 4.13% | 5.58% | 4.43% | 4.41% | 4.40% | 5.37% | 5.42% | 6.05% | 5.96% |
Frequently Asked Questions
BAB and NAD have a correlation of 0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
NAD has higher volatility (3.00%) compared to BAB (0.98%). In terms of maximum drawdown, BAB dropped -27.80% vs NAD's -44.65%.
NAD currently has the higher Sharpe Ratio (1.34 vs 1.13), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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