VXZ vs XLP: Correlation
Measured on weekly returns over the past three years, iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Consumer Staples Select Sector SPDR Fund (XLP) carry a correlation of -0.28, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and XLP?
Across a 3-year window, the weekly returns of VXZ and XLP correlate at -0.28, negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.16) runs above the 3-year figure (-0.28). Stretching to 5 years gives -0.35, with an annualized covariance of -80.2 %².
Among the 2840 assets we track against VXZ, XLP ranks #760 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLP outperformed by 24.4 percentage points (-16.1% for VXZ against +8.3% for XLP). Risk is not evenly split, since VXZ carries 2.3 times the volatility of the other side.
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 XLP: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XLP (Consumer Staples Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -16.1% | +8.3% |
| 5-year return | -53.1% | +34.7% |
| Volatility (ann.) | 25.6% | 11.1% |
| Beta vs S&P 500 | -1.31 | 0.23 |
| Max drawdown (3Y) | -36.4% | -9.7% |
| Dividend yield | – | 2.58% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $14.6B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLP sits in the Consumer Defensive category at State Street Investment Management, with $14.6B under management, 35 holdings, a 0.08% expense ratio, a 2.58% trailing dividend yield.
Year-by-year returns
| Year | VXZ | XLP |
|---|---|---|
| 2022 | +0.5% | -0.8% |
| 2023 | -44.0% | -0.8% |
| 2024 | -12.7% | +12.2% |
| 2025 | +5.7% | +1.5% |
| 2026 | -10.5% | +10.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XLP good diversifiers for each other?
Yes. With a correlation of -0.28, VXZ and XLP have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXZ and XLP?
As of 2026-08-27, the correlation of weekly returns between VXZ and XLP is -0.28 over 3 years, -0.16 over 1 year and -0.35 over 5 years.
Is XLP a good diversifier for VXZ?
Yes. With a correlation of -0.28, VXZ and XLP have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.28 mean?
On the −1 to +1 scale, -0.28 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.
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Hubs: VXZ correlations · XLP correlations
