VEA vs VXZ: Correlation
Measured on weekly returns over the past three years, Vanguard FTSE Developed Markets ETF (VEA) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.60, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VEA and VXZ?
Over the past 3 years, VEA and VXZ moved with a correlation of -0.60, which is negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.65 over 1 year against -0.60 over 3. Over 5 years the correlation is -0.64, and the annualized covariance of weekly returns is -232.5 %².
VXZ is close to the least connected end of VEA's tracked universe, ranking #106 of 107. Correlation aside, the last 12 months split them widely, with VEA ahead by 44.6 points (+28.5% versus -16.1%). Note the risk asymmetry: VXZ runs 1.7 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 VXZ: side by side
| VEA (Vanguard FTSE Developed Markets ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +28.5% | -16.1% |
| 5-year return | +63.5% | -53.1% |
| Volatility (ann.) | 15.1% | 25.6% |
| Beta vs S&P 500 | 0.79 | -1.31 |
| Max drawdown (3Y) | -13.5% | -36.4% |
| Dividend yield | 2.56% | – |
| Expense ratio | 0.03% | – |
| Assets under management | $314.9B | – |
| Sector / category | ETF · International | US Listed |
VEA, Vanguard's Foreign Large Blend fund, carries $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Year-by-year returns
| Year | VEA | VXZ |
|---|---|---|
| 2022 | -15.3% | +0.5% |
| 2023 | +17.9% | -44.0% |
| 2024 | +3.1% | -12.7% |
| 2025 | +35.2% | +5.7% |
| 2026 | +18.3% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VEA and VXZ good diversifiers for each other?
Yes: at -0.60, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VEA and VXZ?
As of 2026-08-27, the correlation of weekly returns between VEA and VXZ is -0.60 over 3 years, -0.65 over 1 year and -0.64 over 5 years.
Is VXZ a good diversifier for VEA?
Yes: at -0.60, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.60 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/vea-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vea-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VEA correlations · VXZ correlations
