VGM vs VXX: Correlation
Measured on weekly returns over the past three years, Invesco Trust for Investment Grade Municipals (VGM) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) carry a correlation of -0.31, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VGM and VXX?
On 3 years of weekly data the VGM/VXX correlation comes out at -0.31, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.46 versus -0.31 over 3 years. The 5-year figure is -0.27, and annualized covariance runs at -231.8 %².
Out of 18 assets tracked against VGM, VXX lands near the bottom at #17. The last year tells two different stories: VGM led by 67.0 percentage points, +17.3% for VGM against -49.7% for VXX. Note the risk asymmetry: VXX runs 5.0 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.
VGM vs VXX: side by side
| VGM (Invesco Trust for Investment Grade Municipals) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +17.3% | -49.7% |
| 5-year return | -0.8% | -95.6% |
| Volatility (ann.) | 12.2% | 60.9% |
| Beta vs S&P 500 | 0.30 | -3.31 |
| Max drawdown (3Y) | -11.5% | -83.3% |
| Market cap | $0.6B | – |
| P/E (trailing) | 33.5 | – |
| Dividend yield | 7.51% | 0.00% |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VGM | VXX |
|---|---|---|
| 2022 | -24.2% | -23.8% |
| 2023 | +3.0% | -72.5% |
| 2024 | +8.8% | -26.2% |
| 2025 | +11.1% | -42.2% |
| 2026 | +5.3% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VGM and VXX good diversifiers for each other?
By historical standards, yes. A correlation of -0.31 means the two rarely move for the same reasons.
FAQ
What is the correlation between VGM and VXX?
Using weekly returns as of 2026-08-27: -0.31 over 3 years, with -0.46 over the last year and -0.27 over 5 years.
Is VXX a good diversifier for VGM?
By historical standards, yes. A correlation of -0.31 means the two rarely move for the same reasons.
What does a correlation of -0.31 mean?
A reading of -0.31 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vgm-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vgm-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VGM correlations · VXX correlations
