VXZ vs XLF: Correlation
Measured on weekly returns over the past three years, iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Financial Select Sector SPDR Fund (XLF) carry a correlation of -0.71, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and XLF?
On 3 years of weekly data the VXZ/XLF correlation comes out at -0.71, negative, meaning they tend to move in opposite directions. The relationship has been stable: the 1-year correlation (-0.65) sits close to the 3-year figure. The 5-year figure is -0.68, and annualized covariance runs at -292.3 %².
Among the 2840 assets we track against VXZ, XLF ranks #2826 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLF outperformed by 25.4 percentage points (-16.1% for VXZ against +9.3% for XLF). Note the risk asymmetry: VXZ runs 1.6 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 XLF: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XLF (Financial Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -16.1% | +9.3% |
| 5-year return | -53.1% | +64.2% |
| Volatility (ann.) | 25.6% | 16.2% |
| Beta vs S&P 500 | -1.31 | 0.84 |
| Max drawdown (3Y) | -36.4% | -15.5% |
| Dividend yield | – | 1.42% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $57.9B |
| Sector / category | US Listed | Sector ETF |
XLF is a Financial fund from State Street Investment Management: $57.9B under management, 77 holdings, a 0.08% expense ratio, a 1.42% trailing dividend yield.
Year-by-year returns
| Year | VXZ | XLF |
|---|---|---|
| 2022 | +0.5% | -10.6% |
| 2023 | -44.0% | +12.0% |
| 2024 | -12.7% | +30.6% |
| 2025 | +5.7% | +14.9% |
| 2026 | -10.5% | +6.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XLF good diversifiers for each other?
By historical standards, yes. A correlation of -0.71 means the two rarely move for the same reasons.
FAQ
What is the correlation between VXZ and XLF?
As of 2026-08-27, the correlation of weekly returns between VXZ and XLF is -0.71 over 3 years, -0.65 over 1 year and -0.68 over 5 years.
Is XLF a good diversifier for VXZ?
By historical standards, yes. A correlation of -0.71 means the two rarely move for the same reasons.
What does a correlation of -0.71 mean?
A reading of -0.71 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-xlf.json
Embed this badge (it refreshes with the data), with attribution:
[](https://www.pairbook.io/pair/vxz-vs-xlf/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: VXZ correlations · XLF correlations
