VXZ vs XLK: Correlation
iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Technology Select Sector SPDR Fund (XLK) show a negative relationship: their 3-year correlation of weekly returns is -0.63.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and XLK?
Across a 3-year window, the weekly returns of VXZ and XLK correlate at -0.63, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.49) runs above the 3-year figure (-0.63). Stretching to 5 years gives -0.61, with an annualized covariance of -384.4 %².
Among the 2840 assets we track against VXZ, XLK ranks #2783 by 3-year correlation. The last year tells two different stories: XLK led by 59.5 percentage points, -16.1% for VXZ against +43.4% for XLK.
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 XLK: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XLK (Technology Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -16.1% | +43.4% |
| 5-year return | -53.1% | +145.2% |
| Volatility (ann.) | 25.6% | 24.0% |
| Beta vs S&P 500 | -1.31 | 1.50 |
| Max drawdown (3Y) | -36.4% | -25.7% |
| Dividend yield | – | 0.45% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $115.4B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLK sits in the Technology category at State Street Investment Management, with $115.4B under management, 73 holdings, a 0.08% expense ratio, a 0.45% trailing dividend yield.
Year-by-year returns
| Year | VXZ | XLK |
|---|---|---|
| 2022 | +0.5% | -27.7% |
| 2023 | -44.0% | +56.0% |
| 2024 | -12.7% | +21.6% |
| 2025 | +5.7% | +24.6% |
| 2026 | -10.5% | +31.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XLK good diversifiers for each other?
Yes: at -0.63, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between VXZ and XLK?
As of 2026-08-27, the correlation of weekly returns between VXZ and XLK is -0.63 over 3 years, -0.49 over 1 year and -0.61 over 5 years.
Is XLK a good diversifier for VXZ?
Yes: at -0.63, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.63 mean?
A reading of -0.63 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
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Related comparisons
Hubs: VXZ correlations · XLK correlations
