VXZ vs VYM: Correlation
Measured on weekly returns over the past three years, iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Vanguard High Dividend Yield ETF (VYM) carry a correlation of -0.70, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and VYM?
On 3 years of weekly data the VXZ/VYM correlation comes out at -0.70, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.59) runs above the 3-year figure (-0.70). The 5-year figure is -0.67, and annualized covariance runs at -220.5 %².
Within VXZ's tracked universe of 2840 assets, VYM comes in at #2818 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months VYM outperformed by 37.2 percentage points (-16.1% for VXZ against +21.1% for VYM). One caveat on sizing: VXZ is 2.1 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.
VXZ vs VYM: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | VYM (Vanguard High Dividend Yield ETF) | |
|---|---|---|
| 1-year return | -16.1% | +21.1% |
| 5-year return | -53.1% | +76.6% |
| Volatility (ann.) | 25.6% | 12.3% |
| Beta vs S&P 500 | -1.31 | 0.69 |
| Max drawdown (3Y) | -36.4% | -14.5% |
| Dividend yield | – | 2.24% |
| Expense ratio | – | 0.04% |
| Assets under management | – | $99.2B |
| Sector / category | US Listed | ETF · Dividend |
VYM, Vanguard's Large Value fund, carries $99.2B under management, 604 holdings, a 0.04% expense ratio, a 2.24% trailing dividend yield.
Year-by-year returns
| Year | VXZ | VYM |
|---|---|---|
| 2022 | +0.5% | -0.4% |
| 2023 | -44.0% | +6.6% |
| 2024 | -12.7% | +17.6% |
| 2025 | +5.7% | +15.4% |
| 2026 | -10.5% | +15.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and VYM good diversifiers for each other?
Yes: at -0.70, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VXZ and VYM?
The VXZ/VYM correlation stands at -0.70 on a 3-year window (1 year: -0.59, 5 years: -0.67), computed from weekly returns as of 2026-08-27.
Is VYM a good diversifier for VXZ?
Yes: at -0.70, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.70 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.
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Hubs: VXZ correlations · VYM correlations
