MUC vs. NMI

Last updated Jun 3, 2026

MUC (BlackRock MuniHoldings California Quality Fund) and NMI (Nuveen Municipal Income Fund, Inc.) are both Municipal Bonds funds. Over the past 10 years, MUC returned 0.80%/yr vs 2.42%/yr for NMI. At a 0.23 correlation, their price movements are largely independent. MUC charges 2.14%/yr vs 0.72%/yr for NMI.

Performance

MUC vs. NMI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in BlackRock MuniHoldings California Quality Fund (MUC) and Nuveen Municipal Income Fund, Inc. (NMI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MUC achieves a 4.25% return, which is significantly lower than NMI's 10.27% return. Over the past 10 years, MUC has underperformed NMI with an annualized return of 0.80%, while NMI has yielded a comparatively higher 2.42% annualized return.

MUC

• 1D: 0.09%
• 1M: 0.40%
• YTD: 4.25%
• 6M: 4.67%
• 1Y: 10.73%
• 3Y*: 6.35%
• 5Y*: -2.59%
• 10Y*: 0.80%

NMI

• 1D: -1.65%
• 1M: 8.64%
• YTD: 10.27%
• 6M: 9.91%
• 1Y: 14.87%
• 3Y*: 8.01%
• 5Y*: 2.47%
• 10Y*: 2.42%

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

MUC vs. NMI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MUC BlackRock MuniHoldings California Quality Fund	4.25%	5.96%	0.76%	7.86%	-26.81%	7.38%	11.85%	18.12%	-9.00%	6.07%
NMI Nuveen Municipal Income Fund, Inc.	10.27%	10.52%	7.03%	1.90%	-15.09%	3.86%	4.70%	16.02%	-8.07%	7.49%

Correlation

The correlation between MUC and NMI is 0.15, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.15
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.33
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Mar 3, 1998	0.23

The correlation between MUC and NMI shifts across timeframes, from 0.15 (1 year) to 0.33 (5 years), reflecting how their relationship changes across market environments.

Return for Risk

MUC vs. NMI — Risk / Return Rank

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

MUC

MUC Risk / Return Rank: 24
MUC Sharpe Ratio Rank: 21
MUC Sortino Ratio Rank: 25
MUC Omega Ratio Rank: 24
MUC Calmar Ratio Rank: 19
MUC Martin Ratio Rank: 27

NMI

NMI Risk / Return Rank: 14
NMI Sharpe Ratio Rank: 12
NMI Sortino Ratio Rank: 14
NMI Omega Ratio Rank: 21
NMI Calmar Ratio Rank: 14
NMI Martin Ratio Rank: 10

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.

MUC vs. NMI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for BlackRock MuniHoldings California Quality Fund (MUC) and Nuveen Municipal Income Fund, Inc. (NMI). 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.

	MUC	NMI	Difference
Sharpe ratio Return per unit of total volatility	1.34	0.94	+0.40
Sortino ratio Return per unit of downside risk	2.12	1.56	+0.56
Omega ratio Gain probability vs. loss probability	1.26	1.24	+0.02
Calmar ratio Return relative to maximum drawdown	1.64	1.38	+0.27
Martin ratio Return relative to average drawdown	6.69	3.25	+3.44
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MUC vs. NMI - Sharpe Ratio Comparison

The current MUC Sharpe Ratio is 1.34, which is higher than the NMI Sharpe Ratio of 0.94. The chart below compares the historical Sharpe Ratios of MUC and NMI, 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

	MUC	NMI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.34	0.94	+0.40
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.23	0.17	-0.40
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.07	0.16	-0.10
Sharpe Ratio (All Time) Calculated using the full available price history	0.29	0.34	-0.05

Drawdowns

MUC vs. NMI - Drawdown Comparison

The maximum MUC drawdown since its inception was -48.97%, which is greater than NMI's maximum drawdown of -28.92%. Use the drawdown chart below to compare losses from any high point for MUC and NMI.

Drawdown Indicators

	MUC	NMI	Difference
Max Drawdown Largest peak-to-trough decline	-48.97%	-28.92%	-20.05%
Max Drawdown (1Y) Largest decline over 1 year	-6.53%	-10.96%	+4.43%
Max Drawdown (3Y) Largest decline over 3 years	-14.51%	-14.54%	+0.03%
Max Drawdown (5Y) Largest decline over 5 years	-38.29%	-28.92%	-9.37%
Max Drawdown (10Y) Largest decline over 10 years	-38.29%	-28.92%	-9.37%
Current Drawdown Current decline from peak	-16.35%	-2.28%	-14.07%
Average Drawdown Average peak-to-trough decline	-9.90%	-5.92%	-3.98%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.60%	4.65%	-3.05%

Volatility

MUC vs. NMI - Volatility Comparison

The current volatility for BlackRock MuniHoldings California Quality Fund (MUC) is 2.41%, while Nuveen Municipal Income Fund, Inc. (NMI) has a volatility of 7.45%. This indicates that MUC experiences smaller price fluctuations and is considered to be less risky than NMI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MUC	NMI	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.41%	7.45%	-5.04%
Volatility (6M) Calculated over the trailing 6-month period	6.28%	13.27%	-6.99%
Volatility (1Y) Calculated over the trailing 1-year period	8.05%	15.85%	-7.80%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.50%	14.45%	-2.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	11.89%	14.93%	-3.04%

MUC vs. NMI - Expense Ratio Comparison

MUC has a 2.14% expense ratio, which is higher than NMI's 0.72% expense ratio.

Dividends

MUC vs. NMI - Dividend Comparison

MUC's dividend yield for the trailing twelve months is around 5.96%, more than NMI's 4.24% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MUC BlackRock MuniHoldings California Quality Fund	5.96%	6.06%	5.62%	3.84%	5.79%	4.27%	3.96%	3.90%	4.99%	5.14%	5.45%	5.46%
NMI Nuveen Municipal Income Fund, Inc.	4.24%	4.59%	4.63%	4.04%	3.51%	3.22%	3.53%	4.15%	5.12%	4.21%	4.45%	4.28%

Frequently Asked Questions

Can I hold both MUC and NMI in my portfolio?

MUC and NMI have a correlation of 0.15, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MUC or NMI?

NMI has higher volatility (7.45%) compared to MUC (2.41%). In terms of maximum drawdown, MUC dropped -48.97% vs NMI's -28.92%.

Which has better risk-adjusted returns?

MUC currently has the higher Sharpe Ratio (1.34 vs 0.94), 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.