EEM vs VXZ: Correlation
iShares MSCI Emerging Markets ETF (EEM) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) show a negative relationship: their 3-year correlation of weekly returns is -0.49.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EEM and VXZ?
Across a 3-year window, the weekly returns of EEM and VXZ correlate at -0.49, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.54 over 1 year against -0.49 over 3. Stretching to 5 years gives -0.54, with an annualized covariance of -226.4 %².
VXZ is close to the least connected end of EEM's tracked universe, ranking #65 of 67. Their recent paths diverged sharply: over the last 12 months EEM outperformed by 54.2 percentage points (+38.1% for EEM against -16.1% for VXZ).
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 VXZ: side by side
| EEM (iShares MSCI Emerging Markets ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +38.1% | -16.1% |
| 5-year return | +47.1% | -53.1% |
| Volatility (ann.) | 18.0% | 25.6% |
| Beta vs S&P 500 | 0.85 | -1.31 |
| Max drawdown (3Y) | -17.3% | -36.4% |
| Dividend yield | 1.73% | – |
| Expense ratio | 0.72% | – |
| Assets under management | $29.2B | – |
| Sector / category | ETF · International | US Listed |
EEM is a Diversified Emerging Mkts fund from iShares: $29.2B under management, 968 holdings, a 0.72% expense ratio, a 1.73% trailing dividend yield.
Year-by-year returns
| Year | EEM | VXZ |
|---|---|---|
| 2022 | -20.6% | +0.5% |
| 2023 | +8.9% | -44.0% |
| 2024 | +6.5% | -12.7% |
| 2025 | +34.0% | +5.7% |
| 2026 | +24.2% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EEM and VXZ good diversifiers for each other?
Yes: at -0.49, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between EEM and VXZ?
Using weekly returns as of 2026-08-27: -0.49 over 3 years, with -0.54 over the last year and -0.54 over 5 years.
Is VXZ a good diversifier for EEM?
Yes: at -0.49, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.49 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/eem-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/eem-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: EEM correlations · VXZ correlations
