VBF vs. NBB

Last updated Jun 23, 2026

VBF (Invesco Bond Fund) and NBB (Nuveen Taxable Municipal Income Fund) are both Corporate Bonds funds. Over the past 10 years, VBF returned 2.99%/yr vs 2.74%/yr for NBB. At a 0.23 correlation, their price movements are largely independent. VBF charges 0.62%/yr vs 0.04%/yr for NBB.

Performance

VBF vs. NBB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Invesco Bond Fund (VBF) and Nuveen Taxable Municipal Income Fund (NBB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VBF achieves a -0.64% return, which is significantly lower than NBB's 1.42% return. Over the past 10 years, VBF has outperformed NBB with an annualized return of 2.99%, while NBB has yielded a comparatively lower 2.74% annualized return.

VBF

• 1D: -0.33%
• 1M: 0.18%
• YTD: -0.64%
• 6M: -0.77%
• 1Y: 2.16%
• 3Y*: 5.60%
• 5Y*: -1.65%
• 10Y*: 2.99%

NBB

• 1D: -1.40%
• 1M: -0.61%
• YTD: 1.42%
• 6M: 1.74%
• 1Y: 7.94%
• 3Y*: 7.60%
• 5Y*: -0.92%
• 10Y*: 2.74%

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

VBF vs. NBB - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VBF Invesco Bond Fund	-0.64%	5.46%	6.97%	2.27%	-17.77%	-5.37%	12.80%	30.91%	-11.16%	13.35%
NBB Nuveen Taxable Municipal Income Fund	1.42%	13.52%	1.32%	7.62%	-24.60%	0.91%	14.45%	19.48%	-6.37%	12.96%

Correlation

The correlation between VBF and NBB is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.33
Correlation (3Y) Calculated over the trailing 3-year period	0.40
Correlation (5Y) Calculated over the trailing 5-year period	0.32
Correlation (10Y) Calculated over the trailing 10-year period	0.26
Correlation (All Time) Calculated using the full available price history since Apr 28, 2010	0.23

The correlation between VBF and NBB shifts across timeframes, from 0.23 (all time) to 0.40 (3 years), reflecting how their relationship changes across market environments.

Return for Risk

VBF vs. NBB — Risk / Return Rank

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

VBF

VBF Risk / Return Rank: 6
VBF Sharpe Ratio Rank: 5
VBF Sortino Ratio Rank: 5
VBF Omega Ratio Rank: 5
VBF Calmar Ratio Rank: 6
VBF Martin Ratio Rank: 6

NBB

NBB Risk / Return Rank: 11
NBB Sharpe Ratio Rank: 10
NBB Sortino Ratio Rank: 11
NBB Omega Ratio Rank: 10
NBB Calmar Ratio Rank: 13
NBB Martin Ratio Rank: 14

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.

VBF vs. NBB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Invesco Bond Fund (VBF) and Nuveen Taxable Municipal Income Fund (NBB). 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.

	VBF	NBB	Difference
Sharpe ratio: Return per unit of total volatility	0.36	0.80	-0.44
Sortino ratio: Return per unit of downside risk	0.60	1.23	-0.63
Omega ratio: Gain probability vs. loss probability	1.06	1.14	-0.08
Calmar ratio: Return relative to maximum drawdown	0.54	1.17	-0.63
Martin ratio: Return relative to average drawdown	1.42	3.56	-2.14

VBF vs. NBB - Sharpe Ratio Comparison

The current VBF Sharpe Ratio is 0.36, which is lower than the NBB Sharpe Ratio of 0.80. The chart below compares the historical Sharpe Ratios of VBF and NBB, 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

VBF vs. NBB - Drawdown Comparison

The maximum VBF drawdown since its inception was -32.23%, roughly equal to the maximum NBB drawdown of -33.51%. Use the drawdown chart below to compare losses from any high point for VBF and NBB.

Drawdown Indicators

	VBF	NBB	Difference
Max Drawdown Largest peak-to-trough decline	-32.23%	-33.51%	+1.28%
Max Drawdown (1Y) Largest decline over 1 year	-4.03%	-6.81%	+2.78%
Max Drawdown (3Y) Largest decline over 3 years	-11.52%	-11.39%	-0.13%
Max Drawdown (5Y) Largest decline over 5 years	-32.23%	-33.51%	+1.28%
Max Drawdown (10Y) Largest decline over 10 years	-32.23%	-33.51%	+1.28%
Current Drawdown Current decline from peak	-11.48%	-7.30%	-4.18%
Average Drawdown Average peak-to-trough decline	-7.25%	-7.66%	+0.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.52%	2.24%	-0.72%

Volatility

VBF vs. NBB - Volatility Comparison

The current volatility for Invesco Bond Fund (VBF) is 1.64%, while Nuveen Taxable Municipal Income Fund (NBB) has a volatility of 2.58%. This indicates that VBF experiences smaller price fluctuations and is considered to be less risky than NBB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VBF	NBB	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.64%	2.58%	-0.94%
Volatility (6M) Calculated over the trailing 6-month period	4.54%	7.39%	-2.85%
Volatility (1Y) Calculated over the trailing 1-year period	6.02%	9.94%	-3.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	12.36%	13.78%	-1.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	12.74%	14.28%	-1.54%

VBF vs. NBB - Expense Ratio Comparison

VBF has a 0.62% expense ratio, which is higher than NBB's 0.04% expense ratio.

Dividends

VBF vs. NBB - Dividend Comparison

VBF's dividend yield for the trailing twelve months is around 5.53%, less than NBB's 7.50% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
NBB Nuveen Taxable Municipal Income Fund	7.50%	7.33%	6.96%	8.33%	7.86%	5.50%	4.67%	5.54%	6.38%	5.62%	6.35%	6.79%
VBF Invesco Bond Fund	5.53%	5.46%	5.51%	5.31%	4.60%	3.36%	6.89%	5.04%	5.40%	5.07%	4.56%	5.40%

Frequently Asked Questions

Can I hold both VBF and NBB in my portfolio?

VBF and NBB have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VBF or NBB?

NBB has higher volatility (2.58%) compared to VBF (1.64%). In terms of maximum drawdown, VBF dropped -32.23% vs NBB's -33.51%.

Which has better risk-adjusted returns?

NBB currently has the higher Sharpe Ratio (0.80 vs 0.36), 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.