VXX vs XLC: Correlation
How closely do iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Communication Services Select Sector SPDR Fund (XLC) trade together? Their weekly returns over three years give a correlation of -0.59, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XLC?
On 3 years of weekly data the VXX/XLC correlation comes out at -0.59, negative, meaning they tend to move in opposite directions. Little has changed lately, as the 1-year reading of -0.52 lands near the 3-year figure. The 5-year figure is -0.53, and annualized covariance runs at -576.4 %².
By 3-year correlation, XLC places #2759 of the 2872 assets tracked against VXX. Correlation aside, the last 12 months split them widely, with XLC ahead by 51.2 points (-49.7% versus +1.5%). One caveat on sizing: VXX is 3.8 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 XLC: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XLC (Communication Services Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -49.7% | +1.5% |
| 5-year return | -95.6% | +37.5% |
| Volatility (ann.) | 60.9% | 16.0% |
| Beta vs S&P 500 | -3.31 | 0.90 |
| Max drawdown (3Y) | -83.3% | -18.0% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 1.32% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $21.7B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLC sits in the Communications category at State Street Investment Management, with $21.7B under management, 24 holdings, a 0.08% expense ratio, a 1.32% trailing dividend yield.
Year-by-year returns
| Year | VXX | XLC |
|---|---|---|
| 2022 | -23.8% | -37.6% |
| 2023 | -72.5% | +52.8% |
| 2024 | -26.2% | +34.7% |
| 2025 | -42.2% | +23.1% |
| 2026 | -31.6% | -4.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XLC good diversifiers for each other?
Yes. With a correlation of -0.59, VXX and XLC have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXX and XLC?
As of 2026-08-27, the correlation of weekly returns between VXX and XLC is -0.59 over 3 years, -0.52 over 1 year and -0.53 over 5 years.
Is XLC a good diversifier for VXX?
Yes. With a correlation of -0.59, VXX and XLC have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.59 mean?
On the −1 to +1 scale, -0.59 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/vxx-vs-xlc.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vxx-vs-xlc/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VXX correlations · XLC correlations
