KTF vs VXZ: Correlation
Measured on weekly returns over the past three years, DWS Municipal Income Trust (KTF) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.26, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are KTF and VXZ?
Across a 3-year window, the weekly returns of KTF and VXZ correlate at -0.26, negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.38) than the 3-year average (-0.26). Stretching to 5 years gives -0.24, with an annualized covariance of -77.7 %².
Among the 13 assets we track against KTF, VXZ sits near the bottom by co-movement, at rank #12. Their recent paths diverged sharply: over the last 12 months KTF outperformed by 25.9 percentage points (+9.8% for KTF against -16.1% for VXZ). One caveat on sizing: VXZ is 2.2 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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.
KTF vs VXZ: side by side
| KTF (DWS Municipal Income Trust) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +9.8% | -16.1% |
| 5-year return | -3.3% | -53.1% |
| Volatility (ann.) | 11.7% | 25.6% |
| Beta vs S&P 500 | 0.19 | -1.31 |
| Max drawdown (3Y) | -11.3% | -36.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 10.1 | – |
| Dividend yield | 8.35% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | KTF | VXZ |
|---|---|---|
| 2022 | -23.7% | +0.5% |
| 2023 | +7.1% | -44.0% |
| 2024 | +13.8% | -12.7% |
| 2025 | +4.6% | +5.7% |
| 2026 | +2.0% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are KTF and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.26 means the two rarely move for the same reasons.
FAQ
What is the correlation between KTF and VXZ?
The KTF/VXZ correlation stands at -0.26 on a 3-year window (1 year: -0.38, 5 years: -0.24), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for KTF?
By historical standards, yes. A correlation of -0.26 means the two rarely move for the same reasons.
What does a correlation of -0.26 mean?
On the −1 to +1 scale, -0.26 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/ktf-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ktf-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: KTF correlations · VXZ correlations
