SMHB vs VXX: Correlation
How closely do ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) trade together? Their weekly returns over three years give a correlation of -0.51, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMHB and VXX?
Across a 3-year window, the weekly returns of SMHB and VXX correlate at -0.51, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.42 lands near the 3-year figure. Stretching to 5 years gives -0.50, with an annualized covariance of -1225.5 %².
Among the 58 assets we track against SMHB, VXX sits near the bottom by co-movement, at rank #57. Their recent paths diverged sharply: over the last 12 months SMHB outperformed by 57.1 percentage points (+7.4% for SMHB against -49.7% for VXX). One caveat on sizing: VXX is 1.5 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.
SMHB vs VXX: side by side
| SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +7.4% | -49.7% |
| 5-year return | -13.5% | -95.6% |
| Volatility (ann.) | 39.3% | 60.9% |
| Beta vs S&P 500 | 1.42 | -3.31 |
| Max drawdown (3Y) | -45.0% | -83.3% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | – | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | SMHB | VXX |
|---|---|---|
| 2022 | -36.0% | -23.8% |
| 2023 | +36.0% | -72.5% |
| 2024 | -15.8% | -26.2% |
| 2025 | -7.7% | -42.2% |
| 2026 | +22.1% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMHB and VXX good diversifiers for each other?
By historical standards, yes. A correlation of -0.51 means the two rarely move for the same reasons.
FAQ
What is the correlation between SMHB and VXX?
The SMHB/VXX correlation stands at -0.51 on a 3-year window (1 year: -0.42, 5 years: -0.50), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for SMHB?
By historical standards, yes. A correlation of -0.51 means the two rarely move for the same reasons.
What does a correlation of -0.51 mean?
On the −1 to +1 scale, -0.51 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/smhb-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/smhb-vs-vxx/)
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Related comparisons
Hubs: SMHB correlations · VXX correlations
