NZF vs. XYLD

Last updated Jun 13, 2026

NZF (Nuveen Municipal Credit Income Fund) and XYLD (Global X S&P 500 Covered Call ETF) are both funds - NZF is a Municipal Bonds fund tracking the S&P National Municipal Bond Index, while XYLD is a Derivative Income fund tracking the Cboe S&P 500 BuyWrite Index. Both are passively managed. Over the past 10 years, NZF returned 3.63%/yr vs 8.35%/yr for XYLD. At a 0.12 correlation, their price movements are largely independent. NZF charges 1.89%/yr vs 0.60%/yr for XYLD.

Performance

NZF vs. XYLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Nuveen Municipal Credit Income Fund (NZF) and Global X S&P 500 Covered Call ETF (XYLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NZF achieves a 3.68% return, which is significantly lower than XYLD's 4.83% return. Over the past 10 years, NZF has underperformed XYLD with an annualized return of 3.63%, while XYLD has yielded a comparatively higher 8.35% annualized return.

NZF

• 1D: -0.47%
• 1M: 1.12%
• YTD: 3.68%
• 6M: 3.27%
• 1Y: 14.21%
• 3Y*: 10.46%
• 5Y*: 0.01%
• 10Y*: 3.63%

XYLD

• 1D: 0.57%
• 1M: 1.15%
• YTD: 4.83%
• 6M: 6.01%
• 1Y: 16.64%
• 3Y*: 11.00%
• 5Y*: 7.61%
• 10Y*: 8.35%

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

NZF vs. XYLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NZF Nuveen Municipal Credit Income Fund	3.68%	11.78%	10.09%	2.49%	-25.53%	11.19%	3.58%	28.33%	-6.79%	14.48%
XYLD Global X S&P 500 Covered Call ETF	4.83%	8.02%	19.49%	11.10%	-12.05%	19.59%	-0.56%	21.41%	-6.09%	16.49%

Correlation

The correlation between NZF and XYLD is 0.27, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.27
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.23
Correlation (10Y) Calculated over the trailing 10-year period	0.16
Correlation (All Time) Calculated using the full available price history since Jun 24, 2013	0.12

The correlation between NZF and XYLD shifts across timeframes, from 0.12 (all time) to 0.27 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

NZF vs. XYLD — Risk / Return Rank

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

NZF

NZF Risk / Return Rank: 37
NZF Sharpe Ratio Rank: 34
NZF Sortino Ratio Rank: 42
NZF Omega Ratio Rank: 37
NZF Calmar Ratio Rank: 32
NZF Martin Ratio Rank: 40

XYLD

XYLD Risk / Return Rank: 85
XYLD Sharpe Ratio Rank: 87
XYLD Sortino Ratio Rank: 88
XYLD Omega Ratio Rank: 93
XYLD Calmar Ratio Rank: 72
XYLD Martin Ratio Rank: 88

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.

NZF vs. XYLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nuveen Municipal Credit Income Fund (NZF) and Global X S&P 500 Covered Call ETF (XYLD). 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.

	NZF	XYLD	Difference
Sharpe ratio: Return per unit of total volatility	1.36	2.46	-1.10
Sortino ratio: Return per unit of downside risk	2.17	3.49	-1.32
Omega ratio: Gain probability vs. loss probability	1.26	1.57	-0.31
Calmar ratio: Return relative to maximum drawdown	1.76	3.16	-1.40
Martin ratio: Return relative to average drawdown	7.22	16.57	-9.35

NZF vs. XYLD - Sharpe Ratio Comparison

The current NZF Sharpe Ratio is 1.36, which is lower than the XYLD Sharpe Ratio of 2.46. The chart below compares the historical Sharpe Ratios of NZF and XYLD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

NZF vs. XYLD - Drawdown Comparison

The maximum NZF drawdown since its inception was -48.55%, which is greater than XYLD's maximum drawdown of -33.46%. Use the drawdown chart below to compare losses from any high point for NZF and XYLD.

Drawdown Indicators

	NZF	XYLD	Difference
Max Drawdown Largest peak-to-trough decline	-48.55%	-33.46%	-15.09%
Max Drawdown (1Y) Largest decline over 1 year	-8.11%	-5.29%	-2.82%
Max Drawdown (3Y) Largest decline over 3 years	-15.59%	-15.53%	-0.06%
Max Drawdown (5Y) Largest decline over 5 years	-37.42%	-18.66%	-18.76%
Max Drawdown (10Y) Largest decline over 10 years	-37.42%	-33.46%	-3.96%
Current Drawdown Current decline from peak	-3.50%	-0.29%	-3.21%
Average Drawdown Average peak-to-trough decline	-7.77%	-3.71%	-4.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.97%	1.01%	+0.96%

Volatility

NZF vs. XYLD - Volatility Comparison

Nuveen Municipal Credit Income Fund (NZF) has a higher volatility of 3.61% compared to Global X S&P 500 Covered Call ETF (XYLD) at 2.17%. This indicates that NZF's price experiences larger fluctuations and is considered to be riskier than XYLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NZF	XYLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	3.61%	2.17%	+1.44%
Volatility (6M) Calculated over the trailing 6-month period	8.30%	5.71%	+2.59%
Volatility (1Y) Calculated over the trailing 1-year period	10.47%	6.79%	+3.68%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.39%	11.25%	+1.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	13.11%	14.22%	-1.11%

NZF vs. XYLD - Expense Ratio Comparison

NZF has a 1.89% expense ratio, which is higher than XYLD's 0.60% expense ratio.

Dividends

NZF vs. XYLD - Dividend Comparison

NZF's dividend yield for the trailing twelve months is around 7.55%, less than XYLD's 10.53% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NZF Nuveen Municipal Credit Income Fund	7.55%	7.58%	6.84%	4.51%	5.80%	4.63%	4.74%	4.82%	6.05%	5.86%	6.26%	5.50%
XYLD Global X S&P 500 Covered Call ETF	10.53%	10.51%	11.54%	10.51%	13.43%	9.07%	7.93%	5.76%	7.12%	5.18%	3.23%	4.65%

Frequently Asked Questions

Can I hold both NZF and XYLD in my portfolio?

NZF and XYLD have a correlation of 0.27, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NZF or XYLD?

NZF has higher volatility (3.61%) compared to XYLD (2.17%). In terms of maximum drawdown, NZF dropped -48.55% vs XYLD's -33.46%.

Which has better risk-adjusted returns?

XYLD currently has the higher Sharpe Ratio (2.46 vs 1.36), 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.