IWM vs VXZ: Correlation
Measured on weekly returns over the past three years, iShares Russell 2000 ETF (IWM) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.71, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IWM and VXZ?
On 3 years of weekly data the IWM/VXZ correlation comes out at -0.71, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.69) sits close to the 3-year figure. The 5-year figure is -0.70, and annualized covariance runs at -360.1 %².
Among the 320 assets we track against IWM, VXZ sits near the bottom by co-movement, at rank #319. The last year tells two different stories: IWM led by 44.5 percentage points, +28.4% for IWM 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.
IWM vs VXZ: side by side
| IWM (iShares Russell 2000 ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +28.4% | -16.1% |
| 5-year return | +41.5% | -53.1% |
| Volatility (ann.) | 19.8% | 25.6% |
| Beta vs S&P 500 | 1.06 | -1.31 |
| Max drawdown (3Y) | -27.5% | -36.4% |
| Dividend yield | 0.91% | – |
| Expense ratio | 0.19% | – |
| Assets under management | $80.1B | – |
| Sector / category | ETF · US Small & Mid Cap | US Listed |
IWM is a Small Blend fund from iShares: $80.1B under management, 1757 holdings, a 0.19% expense ratio, a 0.91% trailing dividend yield.
Year-by-year returns
| Year | IWM | VXZ |
|---|---|---|
| 2022 | -20.5% | +0.5% |
| 2023 | +16.8% | -44.0% |
| 2024 | +11.4% | -12.7% |
| 2025 | +12.7% | +5.7% |
| 2026 | +22.3% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IWM and VXZ good diversifiers for each other?
Yes: at -0.71, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between IWM and VXZ?
The IWM/VXZ correlation stands at -0.71 on a 3-year window (1 year: -0.69, 5 years: -0.70), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for IWM?
Yes: at -0.71, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.71 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/iwm-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iwm-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: IWM correlations · VXZ correlations
