NMZ vs. NZF

Last updated Jun 4, 2026

NMZ (Nuveen Municipal High Income Opportunity Fund) and NZF (Nuveen Municipal Credit Income Fund) are both mutual funds - NMZ is a High Yield Muni fund actively managed by Nuveen, while NZF is a Municipal Bonds fund tracking the S&P National Municipal Bond Index. NMZ is actively managed, while NZF is passively managed. Over the past 10 years, NMZ returned 2.64%/yr vs 3.56%/yr for NZF. At a 0.47 correlation, their price movements are largely independent. NMZ charges 1.50%/yr vs 1.89%/yr for NZF.

Performance

NMZ vs. NZF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nuveen Municipal High Income Opportunity Fund (NMZ) and Nuveen Municipal Credit Income Fund (NZF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NMZ achieves a 3.29% return, which is significantly higher than NZF's 2.37% return. Over the past 10 years, NMZ has underperformed NZF with an annualized return of 2.64%, while NZF has yielded a comparatively higher 3.56% annualized return.

NMZ

• 1D: -0.39%
• 1M: 2.14%
• YTD: 3.29%
• 6M: -0.08%
• 1Y: 6.47%
• 3Y*: 5.96%
• 5Y*: -1.54%
• 10Y*: 2.64%

NZF

• 1D: -0.87%
• 1M: 1.29%
• YTD: 2.37%
• 6M: 1.64%
• 1Y: 14.20%
• 3Y*: 10.44%
• 5Y*: -0.15%
• 10Y*: 3.56%

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

NMZ vs. NZF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NMZ Nuveen Municipal High Income Opportunity Fund	3.29%	1.56%	16.52%	0.69%	-27.36%	10.41%	7.33%	28.36%	-9.47%	12.87%
NZF Nuveen Municipal Credit Income Fund	2.37%	11.78%	10.09%	2.49%	-25.53%	11.19%	3.58%	28.33%	-6.79%	14.48%

Correlation

The correlation between NMZ and NZF is 0.62, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.62
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.59
Correlation (All Time) Calculated using the full available price history since Nov 21, 2003	0.47

The correlation between NMZ and NZF shifts across timeframes, from 0.47 (all time) to 0.68 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

NMZ vs. NZF — Risk / Return Rank

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

NMZ

NMZ Risk / Return Rank: 9
NMZ Sharpe Ratio Rank: 8
NMZ Sortino Ratio Rank: 9
NMZ Omega Ratio Rank: 8
NMZ Calmar Ratio Rank: 11
NMZ Martin Ratio Rank: 9

NZF

NZF Risk / Return Rank: 26
NZF Sharpe Ratio Rank: 23
NZF Sortino Ratio Rank: 28
NZF Omega Ratio Rank: 25
NZF Calmar Ratio Rank: 23
NZF Martin Ratio Rank: 32

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.

NMZ vs. NZF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nuveen Municipal High Income Opportunity Fund (NMZ) and Nuveen Municipal Credit Income Fund (NZF). 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.

	NMZ	NZF	Difference
Sharpe ratio: Return per unit of total volatility	0.69	1.38	-0.69
Sortino ratio: Return per unit of downside risk	1.10	2.18	-1.08
Omega ratio: Gain probability vs. loss probability	1.13	1.26	-0.13
Calmar ratio: Return relative to maximum drawdown	1.09	1.76	-0.67
Martin ratio: Return relative to average drawdown	2.76	7.24	-4.48
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

NMZ vs. NZF - Sharpe Ratio Comparison

The current NMZ Sharpe Ratio is 0.69, which is lower than the NZF Sharpe Ratio of 1.38. The chart below compares the historical Sharpe Ratios of NMZ and NZF, 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

	NMZ	NZF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.69	1.38	-0.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.12	-0.01	-0.11
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.18	0.27	-0.09
Sharpe Ratio (All Time) Calculated using the full available price history	0.27	0.37	-0.11

Drawdowns

NMZ vs. NZF - Drawdown Comparison

The maximum NMZ drawdown since its inception was -58.53%, which is greater than NZF's maximum drawdown of -48.55%. Use the drawdown chart below to compare losses from any high point for NMZ and NZF.

Drawdown Indicators

	NMZ	NZF	Difference
Max Drawdown Largest peak-to-trough decline	-58.53%	-48.55%	-9.98%
Max Drawdown (1Y) Largest decline over 1 year	-5.94%	-8.11%	+2.17%
Max Drawdown (3Y) Largest decline over 3 years	-21.56%	-15.59%	-5.97%
Max Drawdown (5Y) Largest decline over 5 years	-40.03%	-37.42%	-2.61%
Max Drawdown (10Y) Largest decline over 10 years	-40.03%	-37.42%	-2.61%
Current Drawdown Current decline from peak	-12.28%	-4.72%	-7.56%
Average Drawdown Average peak-to-trough decline	-9.47%	-7.77%	-1.70%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.35%	1.97%	+0.38%

Volatility

NMZ vs. NZF - Volatility Comparison

The current volatility for Nuveen Municipal High Income Opportunity Fund (NMZ) is 2.84%, while Nuveen Municipal Credit Income Fund (NZF) has a volatility of 3.51%. This indicates that NMZ experiences smaller price fluctuations and is considered to be less risky than NZF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NMZ	NZF	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.84%	3.51%	-0.67%
Volatility (6M) Calculated over the trailing 6-month period	7.28%	8.14%	-0.86%
Volatility (1Y) Calculated over the trailing 1-year period	9.40%	10.34%	-0.94%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.94%	12.37%	+0.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.76%	13.10%	+1.66%

NMZ vs. NZF - Expense Ratio Comparison

NMZ has a 1.50% expense ratio, which is lower than NZF's 1.89% expense ratio.

Dividends

NMZ vs. NZF - Dividend Comparison

NMZ's dividend yield for the trailing twelve months is around 7.71%, which matches NZF's 7.64% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NMZ Nuveen Municipal High Income Opportunity Fund	7.71%	7.71%	6.35%	5.44%	7.04%	5.10%	5.09%	4.99%	6.15%	5.94%	6.94%	6.67%
NZF Nuveen Municipal Credit Income Fund	7.64%	7.58%	6.84%	4.51%	5.80%	4.63%	4.74%	4.82%	6.05%	5.86%	6.26%	5.50%

Frequently Asked Questions

Can I hold both NMZ and NZF in my portfolio?

NMZ and NZF have a correlation of 0.62, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NMZ or NZF?

NZF has higher volatility (3.51%) compared to NMZ (2.84%). In terms of maximum drawdown, NMZ dropped -58.53% vs NZF's -48.55%.

Which has better risk-adjusted returns?

NZF currently has the higher Sharpe Ratio (1.38 vs 0.69), 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.