VEA vs VXX: Correlation
Vanguard FTSE Developed Markets ETF (VEA) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) show a negative relationship: their 3-year correlation of weekly returns is -0.69.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VEA and VXX?
Across a 3-year window, the weekly returns of VEA and VXX correlate at -0.69, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.73 lands near the 3-year figure. Stretching to 5 years gives -0.64, with an annualized covariance of -635.0 %².
VXX is close to the least connected end of VEA's tracked universe, ranking #107 of 107. Correlation aside, the last 12 months split them widely, with VEA ahead by 78.2 points (+28.5% versus -49.7%). Note the risk asymmetry: VXX runs 4.0 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.
VEA vs VXX: side by side
| VEA (Vanguard FTSE Developed Markets ETF) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +28.5% | -49.7% |
| 5-year return | +63.5% | -95.6% |
| Volatility (ann.) | 15.1% | 60.9% |
| Beta vs S&P 500 | 0.79 | -3.31 |
| Max drawdown (3Y) | -13.5% | -83.3% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 2.56% | 0.00% |
| Expense ratio | 0.03% | – |
| Assets under management | $314.9B | – |
| Sector / category | ETF · International | US Listed |
On the fund side, VEA sits in the Foreign Large Blend category at Vanguard, with $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Year-by-year returns
| Year | VEA | VXX |
|---|---|---|
| 2022 | -15.3% | -23.8% |
| 2023 | +17.9% | -72.5% |
| 2024 | +3.1% | -26.2% |
| 2025 | +35.2% | -42.2% |
| 2026 | +18.3% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VEA and VXX good diversifiers for each other?
Yes. With a correlation of -0.69, VEA and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VEA and VXX?
As of 2026-08-27, the correlation of weekly returns between VEA and VXX is -0.69 over 3 years, -0.73 over 1 year and -0.64 over 5 years.
Is VXX a good diversifier for VEA?
Yes. With a correlation of -0.69, VEA and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.69 mean?
On the −1 to +1 scale, -0.69 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/vea-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vea-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VEA correlations · VXX correlations
