VXZ vs XLU: Correlation
How closely do iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Utilities Select Sector SPDR Fund (XLU) trade together? Their weekly returns over three years give a correlation of -0.29, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and XLU?
On 3 years of weekly data the VXZ/XLU correlation comes out at -0.29, negative, meaning they tend to move in opposite directions. The past 12 months show a tighter link (-0.04) than the 3-year average (-0.29). The 5-year figure is -0.32, and annualized covariance runs at -119.2 %².
Within VXZ's tracked universe of 2840 assets, XLU comes in at #857 by 3-year correlation. Their recent paths diverged sharply: over the last 12 months XLU outperformed by 20.2 percentage points (-16.1% for VXZ against +4.1% for XLU). Risk is not evenly split, since VXZ carries 1.6 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 XLU: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XLU (Utilities Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -16.1% | +4.1% |
| 5-year return | -53.1% | +46.3% |
| Volatility (ann.) | 25.6% | 15.8% |
| Beta vs S&P 500 | -1.31 | 0.26 |
| Max drawdown (3Y) | -36.4% | -13.1% |
| Dividend yield | – | 2.70% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $23.1B |
| Sector / category | US Listed | Sector ETF |
XLU is an Utilities fund from State Street Investment Management: $23.1B under management, 31 holdings, a 0.08% expense ratio, a 2.70% trailing dividend yield.
Year-by-year returns
| Year | VXZ | XLU |
|---|---|---|
| 2022 | +0.5% | +1.4% |
| 2023 | -44.0% | -7.2% |
| 2024 | -12.7% | +23.3% |
| 2025 | +5.7% | +16.0% |
| 2026 | -10.5% | +2.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XLU good diversifiers for each other?
By historical standards, yes. A correlation of -0.29 means the two rarely move for the same reasons.
FAQ
What is the correlation between VXZ and XLU?
Using weekly returns as of 2026-08-27: -0.29 over 3 years, with -0.04 over the last year and -0.32 over 5 years.
Is XLU a good diversifier for VXZ?
By historical standards, yes. A correlation of -0.29 means the two rarely move for the same reasons.
What does a correlation of -0.29 mean?
A reading of -0.29 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-xlu.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vxz-vs-xlu/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: VXZ correlations · XLU correlations
