VXX vs XLB: Correlation
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Materials Select Sector SPDR Fund (XLB) show a negative relationship: their 3-year correlation of weekly returns is -0.54.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XLB?
On 3 years of weekly data the VXX/XLB correlation comes out at -0.54, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.41) runs above the 3-year figure (-0.54). The 5-year figure is -0.55, and annualized covariance runs at -555.8 %².
Within VXX's tracked universe of 2872 assets, XLB comes in at #2679 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLB outperformed by 67.3 percentage points (-49.7% for VXX against +17.6% for XLB). One caveat on sizing: VXX is 3.6 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.
VXX vs XLB: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -49.7% | +17.6% |
| 5-year return | -95.6% | +36.9% |
| Volatility (ann.) | 60.9% | 16.7% |
| Beta vs S&P 500 | -3.31 | 0.72 |
| Max drawdown (3Y) | -83.3% | -23.2% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | US Listed | Sector ETF |
XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Year-by-year returns
| Year | VXX | XLB |
|---|---|---|
| 2022 | -23.8% | -12.3% |
| 2023 | -72.5% | +12.5% |
| 2024 | -26.2% | +0.1% |
| 2025 | -42.2% | +9.9% |
| 2026 | -31.6% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XLB good diversifiers for each other?
Yes: at -0.54, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VXX and XLB?
Using weekly returns as of 2026-08-27: -0.54 over 3 years, with -0.41 over the last year and -0.55 over 5 years.
Is XLB a good diversifier for VXX?
Yes: at -0.54, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.54 mean?
A reading of -0.54 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vxx-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/vxx-vs-xlb/)
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Related comparisons
Hubs: VXX correlations · XLB correlations
