LQD vs VXZ: Correlation
iShares iBoxx Investment Grade Corporate Bond ETF (LQD) 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 -0.30.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are LQD and VXZ?
Across a 3-year window, the weekly returns of LQD and VXZ correlate at -0.30, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.48) runs below the 3-year figure (-0.30). Stretching to 5 years gives -0.30, with an annualized covariance of -55.1 %².
VXZ is close to the least connected end of LQD's tracked universe, ranking #33 of 33. Correlation aside, the last 12 months split them widely, with LQD ahead by 17.6 points (+1.5% versus -16.1%). Risk is not evenly split, since VXZ carries 3.5 times the volatility of the other side.
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 VXZ: side by side
| LQD (iShares iBoxx Investment Grade Corporate Bond ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +1.5% | -16.1% |
| 5-year return | -4.1% | -53.1% |
| Volatility (ann.) | 7.3% | 25.6% |
| Beta vs S&P 500 | 0.15 | -1.31 |
| Max drawdown (3Y) | -6.7% | -36.4% |
| Dividend yield | 4.66% | – |
| Expense ratio | 0.14% | – |
| Assets under management | $33.0B | – |
| Sector / category | ETF · Bonds | US Listed |
LQD, iShares's Corporate Bond fund, carries $33.0B under management, a 0.14% expense ratio, a 4.66% trailing dividend yield.
Year-by-year returns
| Year | LQD | VXZ |
|---|---|---|
| 2022 | -17.9% | +0.5% |
| 2023 | +9.4% | -44.0% |
| 2024 | +0.9% | -12.7% |
| 2025 | +7.9% | +5.7% |
| 2026 | -0.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are LQD and VXZ good diversifiers for each other?
Yes. With a correlation of -0.30, LQD and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between LQD and VXZ?
Using weekly returns as of 2026-08-27: -0.30 over 3 years, with -0.48 over the last year and -0.30 over 5 years.
Is VXZ a good diversifier for LQD?
Yes. With a correlation of -0.30, LQD and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.30 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-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/lqd-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: LQD correlations · VXZ correlations
