BGT vs VXZ: Correlation
How closely do BlackRock Floating Rate Income Trust (BGT) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) trade together? Their weekly returns over three years give a correlation of -0.43, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are BGT and VXZ?
Over the past 3 years, BGT and VXZ moved with a correlation of -0.43, which is negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.59) than the 3-year average (-0.43). Over 5 years the correlation is -0.46, and the annualized covariance of weekly returns is -136.5 %².
Among the 11 assets we track against BGT, VXZ sits near the bottom by co-movement, at rank #10. Correlation aside, the last 12 months split them widely, with BGT ahead by 16.9 points (+0.8% versus -16.1%). Note the risk asymmetry: VXZ runs 2.1 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
BGT vs VXZ: side by side
| BGT (BlackRock Floating Rate Income Trust) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +0.8% | -16.1% |
| 5-year return | +41.9% | -53.1% |
| Volatility (ann.) | 12.4% | 25.6% |
| Beta vs S&P 500 | 0.46 | -1.31 |
| Max drawdown (3Y) | -15.9% | -36.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 15.6 | – |
| Dividend yield | 13.12% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | BGT | VXZ |
|---|---|---|
| 2022 | -16.6% | +0.5% |
| 2023 | +26.3% | -44.0% |
| 2024 | +16.1% | -12.7% |
| 2025 | -0.9% | +5.7% |
| 2026 | +6.6% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are BGT and VXZ good diversifiers for each other?
Yes: at -0.43, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between BGT and VXZ?
Using weekly returns as of 2026-08-27: -0.43 over 3 years, with -0.59 over the last year and -0.46 over 5 years.
Is VXZ a good diversifier for BGT?
Yes: at -0.43, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.43 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/bgt-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/bgt-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: BGT correlations · VXZ correlations
