VXX vs XLV: Correlation
iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and Health Care Select Sector SPDR Fund (XLV) show a negative relationship: their 3-year correlation of weekly returns is -0.40.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXX and XLV?
Across a 3-year window, the weekly returns of VXX and XLV correlate at -0.40, negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.24 versus -0.40 over 3 years. Stretching to 5 years gives -0.43, with an annualized covariance of -358.0 %².
Within VXX's tracked universe of 2872 assets, XLV comes in at #1961 by 3-year correlation. The last year tells two different stories: XLV led by 77.2 percentage points, -49.7% for VXX against +27.5% for XLV. Note the risk asymmetry: VXX runs 4.1 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 XLV: side by side
| VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -49.7% | +27.5% |
| 5-year return | -95.6% | +37.4% |
| Volatility (ann.) | 60.9% | 14.7% |
| Beta vs S&P 500 | -3.31 | 0.42 |
| Max drawdown (3Y) | -83.3% | -17.1% |
| Market cap | – | – |
| P/E (trailing) | – | – |
| Dividend yield | 0.00% | 1.56% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $41.7B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Year-by-year returns
| Year | VXX | XLV |
|---|---|---|
| 2022 | -23.8% | -2.1% |
| 2023 | -72.5% | +2.1% |
| 2024 | -26.2% | +2.5% |
| 2025 | -42.2% | +14.5% |
| 2026 | -31.6% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXX and XLV good diversifiers for each other?
Yes. With a correlation of -0.40, VXX and XLV have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXX and XLV?
Using weekly returns as of 2026-08-27: -0.40 over 3 years, with -0.24 over the last year and -0.43 over 5 years.
Is XLV a good diversifier for VXX?
Yes. With a correlation of -0.40, VXX and XLV have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.40 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-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vxx-vs-xlv/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VXX correlations · XLV correlations
