VXX vs XLI: Correlation
Measured on weekly returns over the past three years, iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Industrial Select Sector SPDR Fund (XLI) carry a correlation of -0.68, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XLI?
Over the past 3 years, VXX and XLI moved with a correlation of -0.68, which is negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.56) runs above the 3-year figure (-0.68). Over 5 years the correlation is -0.63, and the annualized covariance of weekly returns is -652.5 %².
By 3-year correlation, XLI places #2821 of the 2872 assets tracked against VXX. The last year tells two different stories: XLI led by 68.0 percentage points, -49.7% for VXX against +18.3% for XLI. Note the risk asymmetry: VXX runs 3.9 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 XLI: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XLI (Industrial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -49.7% | +18.3% |
| 5-year return | -95.6% | +84.0% |
| Volatility (ann.) | 60.9% | 15.7% |
| Beta vs S&P 500 | -3.31 | 0.89 |
| Max drawdown (3Y) | -83.3% | -18.5% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 1.15% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $32.9B |
| Sector / category | US Listed | Sector ETF |
XLI is an Industrials fund from State Street Investment Management: $32.9B under management, 83 holdings, a 0.08% expense ratio, a 1.15% trailing dividend yield.
Year-by-year returns
| Year | VXX | XLI |
|---|---|---|
| 2022 | -23.8% | -5.6% |
| 2023 | -72.5% | +18.1% |
| 2024 | -26.2% | +17.3% |
| 2025 | -42.2% | +19.3% |
| 2026 | -31.6% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XLI good diversifiers for each other?
Yes: at -0.68, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VXX and XLI?
The VXX/XLI correlation stands at -0.68 on a 3-year window (1 year: -0.56, 5 years: -0.63), computed from weekly returns as of 2026-08-27.
Is XLI a good diversifier for VXX?
Yes: at -0.68, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.68 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/vxx-vs-xli.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vxx-vs-xli/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VXX correlations · XLI correlations
