VLT vs VXZ: Correlation
Measured on weekly returns over the past three years, Invesco High Income Trust II (VLT) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) carry a correlation of -0.56, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VLT and VXZ?
Over the past 3 years, VLT and VXZ moved with a correlation of -0.56, which is negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.54 over 1 year against -0.56 over 3. Over 5 years the correlation is -0.53, and the annualized covariance of weekly returns is -144.3 %².
VXZ is close to the least connected end of VLT's tracked universe, ranking #39 of 40. Over the last 12 months VLT came out ahead by 14.8 percentage points (-1.3% against -16.1%). Note the risk asymmetry: VXZ runs 2.6 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.
VLT vs VXZ: side by side
| VLT (Invesco High Income Trust II) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | -1.3% | -16.1% |
| 5-year return | +12.4% | -53.1% |
| Volatility (ann.) | 10.0% | 25.6% |
| Beta vs S&P 500 | 0.47 | -1.31 |
| Max drawdown (3Y) | -13.4% | -36.4% |
| Market cap | – | – |
| P/E (trailing) | 13.9 | – |
| Dividend yield | 11.52% | – |
| Sector / category | US Listed | US Listed |
Year-by-year returns
| Year | VLT | VXZ |
|---|---|---|
| 2022 | -20.9% | +0.5% |
| 2023 | +13.1% | -44.0% |
| 2024 | +17.3% | -12.7% |
| 2025 | +13.2% | +5.7% |
| 2026 | -4.9% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VLT and VXZ good diversifiers for each other?
Yes: at -0.56, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VLT and VXZ?
The VLT/VXZ correlation stands at -0.56 on a 3-year window (1 year: -0.54, 5 years: -0.53), computed from weekly returns as of 2026-08-27.
Is VXZ a good diversifier for VLT?
Yes: at -0.56, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.56 mean?
On the −1 to +1 scale, -0.56 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/vlt-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vlt-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VLT correlations · VXZ correlations
