VXX vs XLP: Correlation
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Consumer Staples Select Sector SPDR Fund (XLP) show a negative relationship: their 3-year correlation of weekly returns is -0.26.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XLP?
Across a 3-year window, the weekly returns of VXX and XLP correlate at -0.26, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.08) than the 3-year average (-0.26). Stretching to 5 years gives -0.31, with an annualized covariance of -175.2 %².
By 3-year correlation, XLP places #526 of the 2872 assets tracked against VXX. Correlation aside, the last 12 months split them widely, with XLP ahead by 58.0 points (-49.7% versus +8.3%). Note the risk asymmetry: VXX runs 5.5 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 XLP: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -49.7% | +8.3% |
| 5-year return | -95.6% | +34.7% |
| Volatility (ann.) | 60.9% | 11.1% |
| Beta vs S&P 500 | -3.31 | 0.23 |
| Max drawdown (3Y) | -83.3% | -9.7% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | VXX | XLP |
|---|---|---|
| 2022 | -23.8% | -0.8% |
| 2023 | -72.5% | -0.8% |
| 2024 | -26.2% | +12.2% |
| 2025 | -42.2% | +1.5% |
| 2026 | -31.6% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XLP good diversifiers for each other?
Yes. With a correlation of -0.26, VXX and XLP have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXX and XLP?
Using weekly returns as of 2026-08-27: -0.26 over 3 years, with -0.08 over the last year and -0.31 over 5 years.
Is XLP a good diversifier for VXX?
Yes. With a correlation of -0.26, VXX and XLP have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.26 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
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Hubs: VXX correlations · XLP correlations
