VIG vs VXZ: Correlation
Measured on weekly returns over the past three years, Vanguard Dividend Appreciation ETF (VIG) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.73, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VIG and VXZ?
Across a 3-year window, the weekly returns of VIG and VXZ correlate at -0.73, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.70 over 1 year against -0.73 over 3. Stretching to 5 years gives -0.68, with an annualized covariance of -220.5 %².
Among the 106 assets we track against VIG, VXZ sits near the bottom by co-movement, at rank #105. The last year tells two different stories: VIG led by 33.2 percentage points, +17.1% for VIG against -16.1% for VXZ. Note the risk asymmetry: VXZ runs 2.2 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.
VIG vs VXZ: side by side
| VIG (Vanguard Dividend Appreciation ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +17.1% | -16.1% |
| 5-year return | +64.0% | -53.1% |
| Volatility (ann.) | 11.9% | 25.6% |
| Beta vs S&P 500 | 0.74 | -1.31 |
| Max drawdown (3Y) | -15.0% | -36.4% |
| Dividend yield | 1.50% | – |
| Expense ratio | 0.04% | – |
| Assets under management | $130.9B | – |
| Sector / category | ETF · Dividend | US Listed |
On the fund side, VIG sits in the Large Blend category at Vanguard, with $130.9B under management, 333 holdings, a 0.04% expense ratio, a 1.50% trailing dividend yield.
Year-by-year returns
| Year | VIG | VXZ |
|---|---|---|
| 2022 | -9.8% | +0.5% |
| 2023 | +14.5% | -44.0% |
| 2024 | +17.0% | -12.7% |
| 2025 | +14.2% | +5.7% |
| 2026 | +11.6% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VIG and VXZ good diversifiers for each other?
Yes: at -0.73, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VIG and VXZ?
The VIG/VXZ correlation stands at -0.73 on a 3-year window (1 year: -0.70, 5 years: -0.68), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for VIG?
Yes: at -0.73, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.73 mean?
A reading of -0.73 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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$ curl https://www.pairbook.io/api/v1/pairs/vig-vs-vxz.json
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[](https://www.pairbook.io/pair/vig-vs-vxz/)
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Related comparisons
Hubs: VIG correlations · VXZ correlations
