TIP vs VXZ: Correlation
How closely do iShares TIPS Bond ETF (TIP) 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 -0.21, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are TIP and VXZ?
On 3 years of weekly data the TIP/VXZ correlation comes out at -0.21, negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.34) than the 3-year average (-0.21). The 5-year figure is -0.17, and annualized covariance runs at -23.3 %².
Out of 29 assets tracked against TIP, VXZ lands near the bottom at #25. Correlation aside, the last 12 months split them widely, with TIP ahead by 17.5 points (+1.4% versus -16.1%). Note the risk asymmetry: VXZ runs 5.8 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.
TIP vs VXZ: side by side
| TIP (iShares TIPS Bond ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +1.4% | -16.1% |
| 5-year return | +1.2% | -53.1% |
| Volatility (ann.) | 4.4% | 25.6% |
| Beta vs S&P 500 | 0.05 | -1.31 |
| Max drawdown (3Y) | -3.7% | -36.4% |
| Dividend yield | 4.47% | – |
| Expense ratio | 0.18% | – |
| Assets under management | $14.6B | – |
| Sector / category | ETF · Bonds | US Listed |
TIP, iShares's Inflation-Protected Bond fund, carries $14.6B under management, a 0.18% expense ratio, a 4.47% trailing dividend yield.
Year-by-year returns
| Year | TIP | VXZ |
|---|---|---|
| 2022 | -12.3% | +0.5% |
| 2023 | +3.8% | -44.0% |
| 2024 | +1.7% | -12.7% |
| 2025 | +6.8% | +5.7% |
| 2026 | +1.1% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are TIP and VXZ good diversifiers for each other?
Yes: at -0.21, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between TIP and VXZ?
Using weekly returns as of 2026-08-27: -0.21 over 3 years, with -0.34 over the last year and -0.17 over 5 years.
Is VXZ a good diversifier for TIP?
Yes: at -0.21, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.21 mean?
On the −1 to +1 scale, -0.21 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/tip-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/tip-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: TIP correlations · VXZ correlations
