VXX vs XLF: Correlation
How closely do iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Financial Select Sector SPDR Fund (XLF) trade together? Their weekly returns over three years give a correlation of -0.69, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XLF?
On 3 years of weekly data the VXX/XLF correlation comes out at -0.69, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.60) sits close to the 3-year figure. The 5-year figure is -0.62, and annualized covariance runs at -680.3 %².
Within VXX's tracked universe of 2872 assets, XLF comes in at #2831 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLF outperformed by 59.0 percentage points (-49.7% for VXX against +9.3% for XLF). Note the risk asymmetry: VXX runs 3.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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 XLF: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -49.7% | +9.3% |
| 5-year return | -95.6% | +64.2% |
| Volatility (ann.) | 60.9% | 16.2% |
| Beta vs S&P 500 | -3.31 | 0.84 |
| Max drawdown (3Y) | -83.3% | -15.5% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | US Listed | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | VXX | XLF |
|---|---|---|
| 2022 | -23.8% | -10.6% |
| 2023 | -72.5% | +12.0% |
| 2024 | -26.2% | +30.6% |
| 2025 | -42.2% | +14.9% |
| 2026 | -31.6% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XLF good diversifiers for each other?
By historical standards, yes. A correlation of -0.69 means the two rarely move for the same reasons.
FAQ
What is the correlation between VXX and XLF?
The VXX/XLF correlation stands at -0.69 on a 3-year window (1 year: -0.60, 5 years: -0.62), computed from weekly returns as of 2026-08-27.
Is XLF a good diversifier for VXX?
By historical standards, yes. A correlation of -0.69 means the two rarely move for the same reasons.
What does a correlation of -0.69 mean?
On the −1 to +1 scale, -0.69 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.
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Hubs: VXX correlations · XLF correlations
