LQD vs VXX: Correlation
iShares iBoxx Investment Grade Corporate Bond ETF (LQD) 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 -0.22.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LQD and VXX?
Across a 3-year window, the weekly returns of LQD and VXX correlate at -0.22, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.32 lands near the 3-year figure. Stretching to 5 years gives -0.21, with an annualized covariance of -99.1 %².
By 3-year correlation, VXX places #27 of the 33 assets tracked against LQD. Their recent paths diverged sharply: over the last 12 months LQD outperformed by 51.2 percentage points (+1.5% for LQD against -49.7% for VXX). Note the risk asymmetry: VXX runs 8.3 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.
LQD vs VXX: side by side
| LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +1.5% | -49.7% |
| 5-year return | -4.1% | -95.6% |
| Volatility (ann.) | 7.3% | 60.9% |
| Beta vs S&P 500 | 0.15 | -3.31 |
| Max drawdown (3Y) | -6.7% | -83.3% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 4.66% | 0.00% |
| Expense ratio | 0.14% | – |
| Assets under management | $33.0B | – |
| Sector / category | ETF · Bonds | US Listed |
On the fund side, LQD sits in the Corporate Bond category at iShares, with $33.0B under management, a 0.14% expense ratio, a 4.66% trailing dividend yield.
Year-by-year returns
| Year | LQD | VXX |
|---|---|---|
| 2022 | -17.9% | -23.8% |
| 2023 | +9.4% | -72.5% |
| 2024 | +0.9% | -26.2% |
| 2025 | +7.9% | -42.2% |
| 2026 | -0.5% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LQD and VXX good diversifiers for each other?
By historical standards, yes. A correlation of -0.22 means the two rarely move for the same reasons.
FAQ
What is the correlation between LQD and VXX?
Using weekly returns as of 2026-08-27: -0.22 over 3 years, with -0.32 over the last year and -0.21 over 5 years.
Is VXX a good diversifier for LQD?
By historical standards, yes. A correlation of -0.22 means the two rarely move for the same reasons.
What does a correlation of -0.22 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/lqd-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/lqd-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: LQD correlations · VXX correlations
