FT vs VXZ: Correlation
Measured on weekly returns over the past three years, Franklin Universal Trust (FT) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.47, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FT and VXZ?
Over the past 3 years, FT and VXZ moved with a correlation of -0.47, which is negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.41 lands near the 3-year figure. Over 5 years the correlation is -0.42, and the annualized covariance of weekly returns is -127.3 %².
Out of 12 assets tracked against FT, VXZ lands near the bottom at #12. Their recent paths diverged sharply: over the last 12 months FT outperformed by 20.9 percentage points (+4.8% for FT against -16.1% for VXZ). Note the risk asymmetry: VXZ runs 2.4 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.
FT vs VXZ: side by side
| FT (Franklin Universal Trust) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +4.8% | -16.1% |
| 5-year return | +31.6% | -53.1% |
| Volatility (ann.) | 10.5% | 25.6% |
| Beta vs S&P 500 | 0.32 | -1.31 |
| Max drawdown (3Y) | -10.6% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 6.0 | – |
| Dividend yield | 6.58% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | FT | VXZ |
|---|---|---|
| 2022 | -14.0% | +0.5% |
| 2023 | +6.6% | -44.0% |
| 2024 | +18.4% | -12.7% |
| 2025 | +17.0% | +5.7% |
| 2026 | +1.1% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FT and VXZ good diversifiers for each other?
Yes: at -0.47, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between FT and VXZ?
The FT/VXZ correlation stands at -0.47 on a 3-year window (1 year: -0.41, 5 years: -0.42), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for FT?
Yes: at -0.47, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.47 mean?
A reading of -0.47 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ft-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ft-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FT correlations · VXZ correlations
