VXX vs XLU: Correlation
Measured on weekly returns over the past three years, iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Utilities Select Sector SPDR Fund (XLU) carry a correlation of -0.21, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XLU?
Over the past 3 years, VXX and XLU moved with a correlation of -0.21, which is negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (0.04) runs above the 3-year figure (-0.21). Over 5 years the correlation is -0.26, and the annualized covariance of weekly returns is -205.6 %².
Within VXX's tracked universe of 2872 assets, XLU comes in at #107 by 3-year correlation. Correlation aside, the last 12 months split them widely, with XLU ahead by 53.8 points (-49.7% versus +4.1%). One caveat on sizing: VXX is 3.9 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 XLU: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -49.7% | +4.1% |
| 5-year return | -95.6% | +46.3% |
| Volatility (ann.) | 60.9% | 15.8% |
| Beta vs S&P 500 | -3.31 | 0.26 |
| Max drawdown (3Y) | -83.3% | -13.1% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | US Listed | Sector ETF |
XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Year-by-year returns
| Year | VXX | XLU |
|---|---|---|
| 2022 | -23.8% | +1.4% |
| 2023 | -72.5% | -7.2% |
| 2024 | -26.2% | +23.3% |
| 2025 | -42.2% | +16.0% |
| 2026 | -31.6% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XLU good diversifiers for each other?
Yes: at -0.21, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VXX and XLU?
The VXX/XLU correlation stands at -0.21 on a 3-year window (1 year: 0.04, 5 years: -0.26), computed from weekly returns as of 2026-08-27.
Is XLU a good diversifier for VXX?
Yes: at -0.21, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.21 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-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vxx-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VXX correlations · XLU correlations
