VGM vs VXZ: 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 Mid-Term Futures ETN (VXZ) carry a correlation of -0.32, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VGM and VXZ?
On 3 years of weekly data the VGM/VXZ correlation comes out at -0.32, negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.48) than the 3-year average (-0.32). The 5-year figure is -0.29, and annualized covariance runs at -101.0 %².
VXZ is close to the least connected end of VGM's tracked universe, ranking #18 of 18. The last year tells two different stories: VGM led by 33.4 percentage points, +17.3% for VGM against -16.1% for VXZ. One caveat on sizing: VXZ is 2.1 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.
VGM vs VXZ: side by side
| VGM (Invesco Trust for Investment Grade Municipals) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +17.3% | -16.1% |
| 5-year return | -0.8% | -53.1% |
| Volatility (ann.) | 12.2% | 25.6% |
| Beta vs S&P 500 | 0.30 | -1.31 |
| Max drawdown (3Y) | -11.5% | -36.4% |
| Market cap | $0.6B | – |
| P/E (trailing) | 33.5 | – |
| Dividend yield | 7.51% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VGM | VXZ |
|---|---|---|
| 2022 | -24.2% | +0.5% |
| 2023 | +3.0% | -44.0% |
| 2024 | +8.8% | -12.7% |
| 2025 | +11.1% | +5.7% |
| 2026 | +5.3% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VGM and VXZ good diversifiers for each other?
Yes: at -0.32, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VGM and VXZ?
The VGM/VXZ correlation stands at -0.32 on a 3-year window (1 year: -0.48, 5 years: -0.29), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for VGM?
Yes: at -0.32, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.32 mean?
On the −1 to +1 scale, -0.32 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/vgm-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vgm-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VGM correlations · VXZ correlations
