QUAL vs VXZ: Correlation
iShares MSCI USA Quality Factor ETF (QUAL) 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 -0.72.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are QUAL and VXZ?
Across a 3-year window, the weekly returns of QUAL and VXZ correlate at -0.72, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.72 lands near the 3-year figure. Stretching to 5 years gives -0.67, with an annualized covariance of -257.8 %².
VXZ is close to the least connected end of QUAL's tracked universe, ranking #104 of 106. Correlation aside, the last 12 months split them widely, with QUAL ahead by 35.8 points (+19.7% versus -16.1%). Risk is not evenly split, since VXZ carries 1.8 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.
QUAL vs VXZ: side by side
| QUAL (iShares MSCI USA Quality Factor ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +19.7% | -16.1% |
| 5-year return | +68.0% | -53.1% |
| Volatility (ann.) | 14.0% | 25.6% |
| Beta vs S&P 500 | 0.93 | -1.31 |
| Max drawdown (3Y) | -18.0% | -36.4% |
| Dividend yield | 0.86% | – |
| Expense ratio | 0.15% | – |
| Assets under management | $46.5B | – |
| Sector / category | ETF · US Style | US Listed |
QUAL is a Large Blend fund from iShares: $46.5B under management, 123 holdings, a 0.15% expense ratio, a 0.86% trailing dividend yield.
Year-by-year returns
| Year | QUAL | VXZ |
|---|---|---|
| 2022 | -20.5% | +0.5% |
| 2023 | +30.9% | -44.0% |
| 2024 | +22.3% | -12.7% |
| 2025 | +12.7% | +5.7% |
| 2026 | +13.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are QUAL and VXZ good diversifiers for each other?
Yes: at -0.72, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between QUAL and VXZ?
The QUAL/VXZ correlation stands at -0.72 on a 3-year window (1 year: -0.72, 5 years: -0.67), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for QUAL?
Yes: at -0.72, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.72 mean?
On the −1 to +1 scale, -0.72 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/qual-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/qual-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: QUAL correlations · VXZ correlations
