VNQ vs VXZ: Correlation
How closely do Vanguard Real Estate ETF (VNQ) and iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) trade together? Their weekly returns over three years give a correlation of -0.50, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VNQ and VXZ?
Over the past 3 years, VNQ and VXZ moved with a correlation of -0.50, which is negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.39) runs above the 3-year figure (-0.50). Over 5 years the correlation is -0.54, and the annualized covariance of weekly returns is -213.7 %².
VXZ is close to the least connected end of VNQ's tracked universe, ranking #149 of 149. The last year tells two different stories: VNQ led by 26.4 percentage points, +10.3% for VNQ against -16.1% for VXZ. One caveat on sizing: VXZ is 1.5 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.
VNQ vs VXZ: side by side
| VNQ (Vanguard Real Estate ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +10.3% | -16.1% |
| 5-year return | +9.5% | -53.1% |
| Volatility (ann.) | 16.6% | 25.6% |
| Beta vs S&P 500 | 0.59 | -1.31 |
| Max drawdown (3Y) | -17.5% | -36.4% |
| Dividend yield | 3.51% | – |
| Expense ratio | 0.13% | – |
| Assets under management | $73.1B | – |
| Sector / category | ETF · Real Estate | US Listed |
VNQ, Vanguard's Real Estate fund, carries $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Year-by-year returns
| Year | VNQ | VXZ |
|---|---|---|
| 2022 | -26.3% | +0.5% |
| 2023 | +11.9% | -44.0% |
| 2024 | +4.8% | -12.7% |
| 2025 | +3.2% | +5.7% |
| 2026 | +12.5% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VNQ and VXZ good diversifiers for each other?
Yes. With a correlation of -0.50, VNQ and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VNQ and VXZ?
Using weekly returns as of 2026-08-27: -0.50 over 3 years, with -0.39 over the last year and -0.54 over 5 years.
Is VXZ a good diversifier for VNQ?
Yes. With a correlation of -0.50, VNQ and VXZ have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.50 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/vnq-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vnq-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VNQ correlations · VXZ correlations
