VWO vs VXX: Correlation
Measured on weekly returns over the past three years, Vanguard FTSE Emerging Markets ETF (VWO) and iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) carry a correlation of -0.61, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VWO and VXX?
Over the past 3 years, VWO and VXX moved with a correlation of -0.61, which is negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.73) than the 3-year average (-0.61). Over 5 years the correlation is -0.56, and the annualized covariance of weekly returns is -563.0 %².
Out of 73 assets tracked against VWO, VXX lands near the bottom at #73. Correlation aside, the last 12 months split them widely, with VWO ahead by 71.3 points (+21.6% versus -49.7%). One caveat on sizing: VXX is 4.0 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.
VWO vs VXX: side by side
| VWO (Vanguard FTSE Emerging Markets ETF) | VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | |
|---|---|---|
| 1-year return | +21.6% | -49.7% |
| 5-year return | +38.2% | -95.6% |
| Volatility (ann.) | 15.2% | 60.9% |
| Beta vs S&P 500 | 0.75 | -3.31 |
| Max drawdown (3Y) | -17.4% | -83.3% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 2.36% | 0.00% |
| Expense ratio | 0.06% | – |
| Assets under management | $162.0B | – |
| Sector / category | ETF · International | US Listed |
VWO, Vanguard's Diversified Emerging Mkts fund, carries $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Year-by-year returns
| Year | VWO | VXX |
|---|---|---|
| 2022 | -18.0% | -23.8% |
| 2023 | +9.3% | -72.5% |
| 2024 | +10.6% | -26.2% |
| 2025 | +25.6% | -42.2% |
| 2026 | +13.6% | -31.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VWO and VXX good diversifiers for each other?
Yes. With a correlation of -0.61, VWO and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VWO and VXX?
The VWO/VXX correlation stands at -0.61 on a 3-year window (1 year: -0.73, 5 years: -0.56), computed from weekly returns as of 2026-08-27.
Is VXX a good diversifier for VWO?
Yes. With a correlation of -0.61, VWO and VXX have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.61 mean?
On the −1 to +1 scale, -0.61 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/vwo-vs-vxx.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vwo-vs-vxx/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VWO correlations · VXX correlations
