SMHB vs VXZ: Correlation
How closely do ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN (SMHB) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) trade together? Their weekly returns over three years give a correlation of -0.55, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are SMHB and VXZ?
Over the past 3 years, SMHB and VXZ moved with a correlation of -0.55, which is negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.60 lands near the 3-year figure. Over 5 years the correlation is -0.59, and the annualized covariance of weekly returns is -555.5 %².
VXZ is close to the least connected end of SMHB's tracked universe, ranking #58 of 58. Their recent paths diverged sharply: over the last 12 months SMHB outperformed by 23.5 percentage points (+7.4% for SMHB against -16.1% for VXZ). One caveat on sizing: SMHB 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 VXZ: side by side
| SMHB (ETRACS Monthly Pay 2x Leveraged Small Cap High Dividend ETN) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +7.4% | -16.1% |
| 5-year return | -13.5% | -53.1% |
| Volatility (ann.) | 39.3% | 25.6% |
| Beta vs S&P 500 | 1.42 | -1.31 |
| Max drawdown (3Y) | -45.0% | -36.4% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | SMHB | VXZ |
|---|---|---|
| 2022 | -36.0% | +0.5% |
| 2023 | +36.0% | -44.0% |
| 2024 | -15.8% | -12.7% |
| 2025 | -7.7% | +5.7% |
| 2026 | +22.1% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are SMHB and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.55 means the two rarely move for the same reasons.
FAQ
What is the correlation between SMHB and VXZ?
As of 2026-08-27, the correlation of weekly returns between SMHB and VXZ is -0.55 over 3 years, -0.60 over 1 year and -0.59 over 5 years.
Is VXZ a good diversifier for SMHB?
By historical standards, yes. A correlation of -0.55 means the two rarely move for the same reasons.
What does a correlation of -0.55 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/smhb-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/smhb-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: SMHB correlations · VXZ correlations
