VXZ vs XLV: Correlation
Measured on weekly returns over the past three years, iPath Series B S&P 500 VIX Mid-Term Futures ETN (VXZ) and Health Care Select Sector SPDR Fund (XLV) carry a correlation of -0.41, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are VXZ and XLV?
Across a 3-year window, the weekly returns of VXZ and XLV correlate at -0.41, negative, meaning they tend to move in opposite directions. Recent behaviour matches the longer record: -0.32 over 1 year against -0.41 over 3. Stretching to 5 years gives -0.44, with an annualized covariance of -153.9 %².
Within VXZ's tracked universe of 2840 assets, XLV comes in at #2015 by 3-year correlation. The last year tells two different stories: XLV led by 43.6 percentage points, -16.1% for VXZ against +27.5% for XLV. Risk is not evenly split, since VXZ carries 1.7 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 XLV: side by side
| VXZ (iPath Series B S&P 500 VIX Mid-Term Futures ETN) | XLV (Health Care Select Sector SPDR Fund) | |
|---|---|---|
| 1-year return | -16.1% | +27.5% |
| 5-year return | -53.1% | +37.4% |
| Volatility (ann.) | 25.6% | 14.7% |
| Beta vs S&P 500 | -1.31 | 0.42 |
| Max drawdown (3Y) | -36.4% | -17.1% |
| Dividend yield | – | 1.56% |
| Expense ratio | – | 0.08% |
| Assets under management | – | $41.7B |
| Sector / category | US Listed | Sector ETF |
On the fund side, XLV sits in the Health category at State Street Investment Management, with $41.7B under management, 61 holdings, a 0.08% expense ratio, a 1.56% trailing dividend yield.
Year-by-year returns
| Year | VXZ | XLV |
|---|---|---|
| 2022 | +0.5% | -2.1% |
| 2023 | -44.0% | +2.1% |
| 2024 | -12.7% | +2.5% |
| 2025 | +5.7% | +14.5% |
| 2026 | -10.5% | +11.8% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are VXZ and XLV good diversifiers for each other?
By historical standards, yes. A correlation of -0.41 means the two rarely move for the same reasons.
FAQ
What is the correlation between VXZ and XLV?
As of 2026-08-27, the correlation of weekly returns between VXZ and XLV is -0.41 over 3 years, -0.32 over 1 year and -0.44 over 5 years.
Is XLV a good diversifier for VXZ?
By historical standards, yes. A correlation of -0.41 means the two rarely move for the same reasons.
What does a correlation of -0.41 mean?
A reading of -0.41 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-xlv.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/vxz-vs-xlv/)
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Related comparisons
Hubs: VXZ correlations · XLV correlations
