VXZ vs XLB: Correlation
How closely do iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Materials Select Sector SPDR Fund (XLB) trade together? Their weekly returns over three years give a correlation of -0.54, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and XLB?
Over the past 3 years, VXZ and XLB moved with a correlation of -0.54, which is negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.48 over 1 year against -0.54 over 3. Over 5 years the correlation is -0.59, and the annualized covariance of weekly returns is -229.4 %².
By 3-year correlation, XLB places #2649 of the 2840 assets tracked against VXZ. The last year tells two different stories: XLB led by 33.7 percentage points, -16.1% for VXZ against +17.6% for XLB. Note the risk asymmetry: VXZ runs 1.5 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.
VXZ vs XLB: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XLB (Materials Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -16.1% | +17.6% |
| 5-year return | -53.1% | +36.9% |
| Volatility (ann.) | 25.6% | 16.7% |
| Beta vs S&P 500 | -1.31 | 0.72 |
| Max drawdown (3Y) | -36.4% | -23.2% |
| Dividend yield | – | 1.68% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.3B |
| Sector / category | US Listed | Sector ETF |
XLB is a Natural Resources fund from State Street Investment Management: $8.3B under management, 26 holdings, a 0.08% expense ratio, a 1.68% trailing dividend yield.
Year-by-year returns
| Year | VXZ | XLB |
|---|---|---|
| 2022 | +0.5% | -12.3% |
| 2023 | -44.0% | +12.5% |
| 2024 | -12.7% | +0.1% |
| 2025 | +5.7% | +9.9% |
| 2026 | -10.5% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XLB good diversifiers for each other?
Yes: at -0.54, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VXZ and XLB?
Using weekly returns as of 2026-08-27: -0.54 over 3 years, with -0.48 over the last year and -0.59 over 5 years.
Is XLB a good diversifier for VXZ?
Yes: at -0.54, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.54 mean?
A reading of -0.54 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vxz-vs-xlb.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/vxz-vs-xlb/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: VXZ correlations · XLB correlations
