EEM vs VXX: Correlation
iShares MSCI Emerging Markets ETF (EEM) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) show a negative relationship: their 3-year correlation of weekly returns is -0.59.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and VXX?
Over the past 3 years, EEM and VXX moved with a correlation of -0.59, which is negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.68) sits close to the 3-year figure. Over 5 years the correlation is -0.55, and the annualized covariance of weekly returns is -647.0 %².
VXX is close to the least connected end of EEM's tracked universe, ranking #67 of 67. The last year tells two different stories: EEM led by 87.8 percentage points, +38.1% for EEM against -49.7% for VXX. Note the risk asymmetry: VXX runs 3.4 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.
EEM vs VXX: side by side
| EEM (iShares MSCI Emerging Markets ETF) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +38.1% | -49.7% |
| 5-year return | +47.1% | -95.6% |
| Volatility (ann.) | 18.0% | 60.9% |
| Beta vs S&P 500 | 0.85 | -3.31 |
| Max drawdown (3Y) | -17.3% | -83.3% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 1.73% | 0.00% |
| Expense ratio | 0.72% | – |
| Assets under management | $29.2B | – |
| Sector / category | ETF · International | US Listed |
EEM, iShares's Diversified Emerging Mkts fund, carries $29.2B under management, 968 holdings, a 0.72% expense ratio, a 1.73% trailing dividend yield.
Year-by-year returns
| Year | EEM | VXX |
|---|---|---|
| 2022 | -20.6% | -23.8% |
| 2023 | +8.9% | -72.5% |
| 2024 | +6.5% | -26.2% |
| 2025 | +34.0% | -42.2% |
| 2026 | +24.2% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and VXX good diversifiers for each other?
Yes. With a correlation of -0.59, EEM and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between EEM and VXX?
As of 2026-08-27, the correlation of weekly returns between EEM and VXX is -0.59 over 3 years, -0.68 over 1 year and -0.55 over 5 years.
Is VXX a good diversifier for EEM?
Yes. With a correlation of -0.59, EEM and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.59 mean?
On the −1 to +1 scale, -0.59 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/eem-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/eem-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: EEM correlations · VXX correlations
