VXZ vs XLRE: Correlation
Measured on weekly returns over the past three years, iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Real Estate Select Sector SPDR Fund (XLRE) carry a correlation of -0.47, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and XLRE?
Over the past 3 years, VXZ and XLRE moved with a correlation of -0.47, which is negative, meaning they tend to move in opposite directions. Lately the two have moved closer together, with the 1-year correlation at -0.36 versus -0.47 over 3 years. Over 5 years the correlation is -0.51, and the annualized covariance of weekly returns is -201.8 %².
Among the 2840 assets we track against VXZ, XLRE ranks #2397 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLRE outperformed by 25.6 percentage points (-16.1% for VXZ against +9.5% for XLRE). One caveat on sizing: VXZ is 1.5 times as volatile as the other leg, so an equal-dollar split is far from equal-risk.
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 XLRE: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XLRE (Real Estate Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -16.1% | +9.5% |
| 5-year return | -53.1% | +11.4% |
| Volatility (ann.) | 25.6% | 16.7% |
| Beta vs S&P 500 | -1.31 | 0.57 |
| Max drawdown (3Y) | -36.4% | -16.6% |
| Dividend yield | – | 3.12% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $8.6B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLRE sits in the Real Estate category at State Street Investment Management, with $8.6B under management, 31 holdings, a 0.08% expense ratio, a 3.12% trailing dividend yield.
Year-by-year returns
| Year | VXZ | XLRE |
|---|---|---|
| 2022 | +0.5% | -26.2% |
| 2023 | -44.0% | +12.4% |
| 2024 | -12.7% | +5.1% |
| 2025 | +5.7% | +2.6% |
| 2026 | -10.5% | +12.4% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XLRE good diversifiers for each other?
Yes. With a correlation of -0.47, VXZ and XLRE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between VXZ and XLRE?
Using weekly returns as of 2026-08-27: -0.47 over 3 years, with -0.36 over the last year and -0.51 over 5 years.
Is XLRE a good diversifier for VXZ?
Yes. With a correlation of -0.47, VXZ and XLRE have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.47 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
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Related comparisons
Hubs: VXZ correlations · XLRE correlations
