KTF vs. NAC

Last updated Jun 5, 2026

KTF (DWS Municipal Income Trust) is a stock, while NAC (Nuveen California Quality Municipal Income Fund) is Municipal Bonds fund managed by Nuveen. Over the past 10 years, KTF returned 1.14%/yr vs 2.32%/yr for NAC. At a 0.34 correlation, their price movements are largely independent.

Performance

KTF vs. NAC - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in DWS Municipal Income Trust (KTF) and Nuveen California Quality Municipal Income Fund (NAC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KTF achieves a 3.76% return, which is significantly lower than NAC's 5.50% return. Over the past 10 years, KTF has underperformed NAC with an annualized return of 1.14%, while NAC has yielded a comparatively higher 2.32% annualized return.

KTF

• 1D: 0.22%
• 1M: 1.24%
• YTD: 3.76%
• 6M: 3.68%
• 1Y: 11.82%
• 3Y*: 9.25%
• 5Y*: 0.04%
• 10Y*: 1.14%

NAC

• 1D: 0.25%
• 1M: 2.23%
• YTD: 5.50%
• 6M: 5.62%
• 1Y: 19.21%
• 3Y*: 11.51%
• 5Y*: 0.59%
• 10Y*: 2.32%

*Multi-year figures are annualized to reflect compound growth (CAGR)

KTF vs. NAC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KTF DWS Municipal Income Trust	3.76%	4.64%	13.80%	7.09%	-23.94%	6.00%	7.46%	15.31%	-8.25%	-3.81%
NAC Nuveen California Quality Municipal Income Fund	5.50%	13.09%	8.67%	4.47%	-25.66%	7.62%	6.29%	22.27%	-6.23%	6.79%

Correlation

The correlation between KTF and NAC is 0.46, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.46
Correlation (3Y) Calculated over the trailing 3-year period	0.55
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since May 27, 1999	0.34

The correlation between KTF and NAC shifts across timeframes, from 0.34 (all time) to 0.55 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

KTF vs. NAC — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

KTF

KTF Risk / Return Rank: 81
KTF Sharpe Ratio Rank: 82
KTF Sortino Ratio Rank: 82
KTF Omega Ratio Rank: 81
KTF Calmar Ratio Rank: 78
KTF Martin Ratio Rank: 85

NAC

NAC Risk / Return Rank: 78
NAC Sharpe Ratio Rank: 75
NAC Sortino Ratio Rank: 81
NAC Omega Ratio Rank: 72
NAC Calmar Ratio Rank: 84
NAC Martin Ratio Rank: 79

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

KTF vs. NAC - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for DWS Municipal Income Trust (KTF) and Nuveen California Quality Municipal Income Fund (NAC). 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.

	KTF	NAC	Difference
Sharpe ratio: Return per unit of total volatility	1.55	2.49	-0.94
Sortino ratio: Return per unit of downside risk	2.43	3.83	-1.40
Omega ratio: Gain probability vs. loss probability	1.32	1.47	-0.16
Calmar ratio: Return relative to maximum drawdown	2.39	3.89	-1.50
Martin ratio: Return relative to average drawdown	8.66	14.42	-5.76
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KTF vs. NAC - Sharpe Ratio Comparison

The current KTF Sharpe Ratio is 1.55, which is lower than the NAC Sharpe Ratio of 2.49. The chart below compares the historical Sharpe Ratios of KTF and NAC, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	KTF	NAC	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.55	2.49	-0.94
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.00	0.05	-0.05
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.10	0.19	-0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.40	0.38	+0.03

Drawdowns

KTF vs. NAC - Drawdown Comparison

The maximum KTF drawdown since its inception was -47.01%, roughly equal to the maximum NAC drawdown of -46.41%. Use the drawdown chart below to compare losses from any high point for KTF and NAC.

Drawdown Indicators

	KTF	NAC	Difference
Max Drawdown Largest peak-to-trough decline	-47.01%	-46.41%	-0.60%
Max Drawdown (1Y) Largest decline over 1 year	-4.96%	-4.96%	0.00%
Max Drawdown (3Y) Largest decline over 3 years	-14.44%	-13.60%	-0.84%
Max Drawdown (5Y) Largest decline over 5 years	-35.40%	-36.31%	+0.91%
Max Drawdown (10Y) Largest decline over 10 years	-35.40%	-36.31%	+0.91%
Current Drawdown Current decline from peak	-3.80%	-1.02%	-2.78%
Average Drawdown Average peak-to-trough decline	-7.78%	-8.40%	+0.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.37%	1.34%	+0.03%

Volatility

KTF vs. NAC - Volatility Comparison

The current volatility for DWS Municipal Income Trust (KTF) is 2.14%, while Nuveen California Quality Municipal Income Fund (NAC) has a volatility of 2.52%. This indicates that KTF experiences smaller price fluctuations and is considered to be less risky than NAC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KTF	NAC	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.14%	2.52%	-0.38%
Volatility (6M) Calculated over the trailing 6-month period	5.81%	5.60%	+0.21%
Volatility (1Y) Calculated over the trailing 1-year period	7.63%	7.75%	-0.12%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.19%	10.79%	+0.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.00%	12.24%	-0.24%

Dividends

KTF vs. NAC - Dividend Comparison

KTF's dividend yield for the trailing twelve months is around 8.39%, more than NAC's 7.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KTF DWS Municipal Income Trust	8.39%	8.42%	6.94%	3.51%	4.76%	4.25%	4.36%	4.67%	6.17%	6.44%	6.48%	6.23%
NAC Nuveen California Quality Municipal Income Fund	7.30%	7.47%	6.63%	4.03%	5.47%	4.18%	4.17%	4.38%	5.34%	5.54%	6.25%	6.05%

Frequently Asked Questions

Can I hold both KTF and NAC in my portfolio?

KTF and NAC have a correlation of 0.46, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KTF or NAC?

NAC has higher volatility (2.52%) compared to KTF (2.14%). In terms of maximum drawdown, KTF dropped -47.01% vs NAC's -46.41%.

Which has better risk-adjusted returns?

NAC currently has the higher Sharpe Ratio (2.49 vs 1.55), 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.