VWO vs VXZ: Correlation
How closely do Vanguard FTSE Emerging Markets ETF (VWO) 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 -0.53, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VWO and VXZ?
On 3 years of weekly data the VWO/VXZ correlation comes out at -0.53, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.64) runs below the 3-year figure (-0.53). The 5-year figure is -0.57, and annualized covariance runs at -205.5 %².
VXZ is close to the least connected end of VWO's tracked universe, ranking #71 of 73. Correlation aside, the last 12 months split them widely, with VWO ahead by 37.7 points (+21.6% versus -16.1%). Risk is not evenly split, since VXZ carries 1.7 times the volatility of the other side.
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 VXZ: side by side
| VWO (Vanguard FTSE Emerging Markets ETF) | VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | |
|---|---|---|
| 1-year return | +21.6% | -16.1% |
| 5-year return | +38.2% | -53.1% |
| Volatility (ann.) | 15.2% | 25.6% |
| Beta vs S&P 500 | 0.75 | -1.31 |
| Max drawdown (3Y) | -17.4% | -36.4% |
| Dividend yield | 2.36% | – |
| Expense ratio | 0.06% | – |
| Assets under management | $162.0B | – |
| Sector / category | ETF · International | US Listed |
On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Year-by-year returns
| Year | VWO | VXZ |
|---|---|---|
| 2022 | -18.0% | +0.5% |
| 2023 | +9.3% | -44.0% |
| 2024 | +10.6% | -12.7% |
| 2025 | +25.6% | +5.7% |
| 2026 | +13.6% | -10.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VWO and VXZ good diversifiers for each other?
By historical standards, yes. A correlation of -0.53 means the two rarely move for the same reasons.
FAQ
What is the correlation between VWO and VXZ?
As of 2026-08-27, the correlation of weekly returns between VWO and VXZ is -0.53 over 3 years, -0.64 over 1 year and -0.57 over 5 years.
Is VXZ a good diversifier for VWO?
By historical standards, yes. A correlation of -0.53 means the two rarely move for the same reasons.
What does a correlation of -0.53 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/vwo-vs-vxz.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vwo-vs-vxz/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VWO correlations · VXZ correlations
