VBF vs VXX: Correlation
Measured on weekly returns over the past three years, Invesco Bond Fund (VBF) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) carry a correlation of -0.27, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VBF and VXX?
Across a 3-year window, the weekly returns of VBF and VXX correlate at -0.27, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.51 versus -0.27 over 3 years. Stretching to 5 years gives -0.22, with an annualized covariance of -153.7 %².
Among the 11 assets we track against VBF, VXX sits near the bottom by co-movement, at rank #10. Correlation aside, the last 12 months split them widely, with VBF ahead by 50.4 points (+0.7% versus -49.7%). One caveat on sizing: VXX is 6.6 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.
VBF vs VXX: side by side
| VBF (Invesco Bond Fund) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +0.7% | -49.7% |
| 5-year return | -4.4% | -95.6% |
| Volatility (ann.) | 9.2% | 60.9% |
| Beta vs S&P 500 | 0.19 | -3.31 |
| Max drawdown (3Y) | -11.5% | -83.3% |
| Market cap | $0.2B | – |
| P/E (trailing) | 14.4 | – |
| Dividend yield | 5.72% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VBF | VXX |
|---|---|---|
| 2022 | -17.8% | -23.8% |
| 2023 | +2.3% | -72.5% |
| 2024 | +7.0% | -26.2% |
| 2025 | +5.5% | -42.2% |
| 2026 | -1.0% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VBF and VXX good diversifiers for each other?
Yes. With a correlation of -0.27, VBF and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VBF and VXX?
Using weekly returns as of 2026-08-27: -0.27 over 3 years, with -0.51 over the last year and -0.22 over 5 years.
Is VXX a good diversifier for VBF?
Yes. With a correlation of -0.27, VBF and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.27 mean?
On the −1 to +1 scale, -0.27 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/vbf-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vbf-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VBF correlations · VXX correlations
