VXX vs XLE: Correlation
Measured on weekly returns over the past three years, iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Energy Select Sector SPDR Fund (XLE) carry a correlation of -0.28, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XLE?
On 3 years of weekly data the VXX/XLE correlation comes out at -0.28, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (0.25) than the 3-year average (-0.28). The 5-year figure is -0.26, and annualized covariance runs at -397.0 %².
Among the 2872 assets we track against VXX, XLE ranks #766 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLE outperformed by 93.7 percentage points (-49.7% for VXX against +44.0% for XLE). Risk is not evenly split, since VXX carries 2.6 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.
VXX vs XLE: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -49.7% | +44.0% |
| 5-year return | -95.6% | +206.7% |
| Volatility (ann.) | 60.9% | 23.1% |
| Beta vs S&P 500 | -3.31 | 0.27 |
| Max drawdown (3Y) | -83.3% | -20.1% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 2.55% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $39.2B |
| Sector / category | US Listed | Sector ETF |
XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Year-by-year returns
| Year | VXX | XLE |
|---|---|---|
| 2022 | -23.8% | +64.3% |
| 2023 | -72.5% | -0.6% |
| 2024 | -26.2% | +5.6% |
| 2025 | -42.2% | +7.9% |
| 2026 | -31.6% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XLE good diversifiers for each other?
Yes: at -0.28, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VXX and XLE?
As of 2026-08-27, the correlation of weekly returns between VXX and XLE is -0.28 over 3 years, 0.25 over 1 year and -0.26 over 5 years.
Is XLE a good diversifier for VXX?
Yes: at -0.28, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.28 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.
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Related comparisons
Hubs: VXX correlations · XLE correlations
