VXZ vs XLE: Correlation
iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Energy Select Sector SPDR Fund (XLE) show a negative relationship: their 3-year correlation of weekly returns is -0.27.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and XLE?
Across a 3-year window, the weekly returns of VXZ and XLE correlate at -0.27, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (0.31) runs above the 3-year figure (-0.27). Stretching to 5 years gives -0.26, with an annualized covariance of -159.7 %².
By 3-year correlation, XLE places #663 of the 2840 assets tracked against VXZ. The last year tells two different stories: XLE led by 60.1 percentage points, -16.1% for VXZ against +44.0% for XLE.
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 XLE: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XLE (Energy Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -16.1% | +44.0% |
| 5-year return | -53.1% | +206.7% |
| Volatility (ann.) | 25.6% | 23.1% |
| Beta vs S&P 500 | -1.31 | 0.27 |
| Max drawdown (3Y) | -36.4% | -20.1% |
| Dividend yield | – | 2.55% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $39.2B |
| Sector / category | US Listed | Sector ETF |
XLE is an Equity Energy fund from State Street Investment Management: $39.2B under management, 22 holdings, a 0.08% expense ratio, a 2.55% trailing dividend yield.
Year-by-year returns
| Year | VXZ | XLE |
|---|---|---|
| 2022 | +0.5% | +64.3% |
| 2023 | -44.0% | -0.6% |
| 2024 | -12.7% | +5.6% |
| 2025 | +5.7% | +7.9% |
| 2026 | -10.5% | +41.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XLE good diversifiers for each other?
By historical standards, yes. A correlation of -0.27 means the two rarely move for the same reasons.
FAQ
What is the correlation between VXZ and XLE?
Using weekly returns as of 2026-08-27: -0.27 over 3 years, with 0.31 over the last year and -0.26 over 5 years.
Is XLE a good diversifier for VXZ?
By historical standards, yes. A correlation of -0.27 means the two rarely move for the same reasons.
What does a correlation of -0.27 mean?
On the −1 to +1 scale, -0.27 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/vxz-vs-xle.json
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Related comparisons
Hubs: VXZ correlations · XLE correlations
