VXX vs XLK: Correlation
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Technology Select Sector SPDR Fund (XLK) show a negative relationship: their 3-year correlation of weekly returns is -0.69.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XLK?
Across a 3-year window, the weekly returns of VXX and XLK correlate at -0.69, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.58) runs above the 3-year figure (-0.69). Stretching to 5 years gives -0.62, with an annualized covariance of -1006.6 %².
Within VXX's tracked universe of 2872 assets, XLK comes in at #2832 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLK outperformed by 93.1 percentage points (-49.7% for VXX against +43.4% for XLK). Risk is not evenly split, since VXX carries 2.5 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 XLK: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -49.7% | +43.4% |
| 5-year return | -95.6% | +145.2% |
| Volatility (ann.) | 60.9% | 24.0% |
| Beta vs S&P 500 | -3.31 | 1.50 |
| Max drawdown (3Y) | -83.3% | -25.7% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLK sits in the Technology category at State Street Investment Management, with $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield.
Year-by-year returns
| Year | VXX | XLK |
|---|---|---|
| 2022 | -23.8% | -27.7% |
| 2023 | -72.5% | +56.0% |
| 2024 | -26.2% | +21.6% |
| 2025 | -42.2% | +24.6% |
| 2026 | -31.6% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XLK 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 XLK?
Using weekly returns as of 2026-08-27: -0.69 over 3 years, with -0.58 over the last year and -0.62 over 5 years.
Is XLK 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vxx-vs-xlk.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/vxx-vs-xlk/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VXX correlations · XLK correlations
