VXX vs. ^VIX

Last updated Jun 4, 2026

VXX (iPath Series B S&P 500 VIX Short-Term Futures ETN) is Volatility fund tracking the S&P 500 VIX Short-Term Futures Index Total Return, while ^VIX (CBOE Volatility Index) is an index. Over the past 10 years, VXX returned -46.78%/yr vs 1.77%/yr for ^VIX. Their correlation of 0.86 suggests significant overlap in exposure.

Performance

VXX vs. ^VIX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and CBOE Volatility Index (^VIX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VXX achieves a -8.16% return, which is significantly lower than ^VIX's 7.42% return. Over the past 10 years, VXX has underperformed ^VIX with an annualized return of -46.78%, while ^VIX has yielded a comparatively higher 1.77% annualized return.

VXX

• 1D: -0.25%
• 1M: -15.21%
• YTD: -8.16%
• 6M: -22.63%
• 1Y: -53.35%
• 3Y*: -42.02%
• 5Y*: -46.10%
• 10Y*: -46.78%

^VIX

• 1D: 1.84%
• 1M: -12.19%
• YTD: 7.42%
• 6M: -0.12%
• 1Y: -9.21%
• 3Y*: 3.23%
• 5Y*: -0.44%
• 10Y*: 1.77%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VXX vs. ^VIX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VXX iPath Series B S&P 500 VIX Short-Term Futures ETN	-8.16%	-42.21%	-26.22%	-72.52%	-23.80%	-72.41%	11.04%	-67.75%	67.91%	-72.64%
^VIX CBOE Volatility Index	7.42%	-13.83%	39.36%	-42.55%	25.84%	-24.31%	65.09%	-45.79%	130.25%	-21.37%

Correlation

The correlation between VXX and ^VIX is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (5Y) Calculated over the trailing 5-year period	0.86
Correlation (10Y) Calculated over the trailing 10-year period	0.87
Correlation (All Time) Calculated using the full available price history since Feb 2, 2009	0.86

The correlation between VXX and ^VIX has been stable across timeframes, ranging from 0.86 to 0.87 - a consistent structural relationship.

Return for Risk

VXX vs. ^VIX — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VXX

VXX Risk / Return Rank: 1
VXX Sharpe Ratio Rank: 1
VXX Sortino Ratio Rank: 1
VXX Omega Ratio Rank: 1
VXX Calmar Ratio Rank: 1
VXX Martin Ratio Rank: 2

^VIX

^VIX Risk / Return Rank: 15
^VIX Sharpe Ratio Rank: 10
^VIX Sortino Ratio Rank: 25
^VIX Omega Ratio Rank: 24
^VIX Calmar Ratio Rank: 7
^VIX Martin Ratio Rank: 9

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

VXX vs. ^VIX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) and CBOE Volatility Index (^VIX). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	VXX	^VIX	Difference
Sharpe ratio Return per unit of total volatility	-0.96	-0.08	-0.88
Sortino ratio Return per unit of downside risk	-1.56	0.73	-2.29
Omega ratio Gain probability vs. loss probability	0.82	1.08	-0.26
Calmar ratio Return relative to maximum drawdown	-0.95	-0.18	-0.78
Martin ratio Return relative to average drawdown	-1.34	-0.28	-1.05
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VXX vs. ^VIX - Sharpe Ratio Comparison

The current VXX Sharpe Ratio is -0.96, which is lower than the ^VIX Sharpe Ratio of -0.08. The chart below compares the historical Sharpe Ratios of VXX and ^VIX, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VXX	^VIX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.96	-0.08	-0.88
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.68	-0.00	-0.68
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.66	0.01	-0.67
Sharpe Ratio (All Time) Calculated using the full available price history	-0.77	-0.00	-0.76

Drawdowns

VXX vs. ^VIX - Drawdown Comparison

The maximum VXX drawdown since its inception was -100.00%, which is greater than ^VIX's maximum drawdown of -88.70%. Use the drawdown chart below to compare losses from any high point for VXX and ^VIX.

Drawdown Indicators

	VXX	^VIX	Difference
Max Drawdown Largest peak-to-trough decline	-100.00%	-88.70%	-11.30%
Max Drawdown (1Y) Largest decline over 1 year	-56.23%	-50.66%	-5.57%
Max Drawdown (3Y) Largest decline over 3 years	-80.28%	-74.26%	-6.02%
Max Drawdown (5Y) Largest decline over 5 years	-95.68%	-74.26%	-21.42%
Max Drawdown (10Y) Largest decline over 10 years	-99.86%	-85.66%	-14.20%
Current Drawdown Current decline from peak	-100.00%	-80.58%	-19.42%
Average Drawdown Average peak-to-trough decline	-95.08%	-64.11%	-30.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	39.88%	31.88%	+8.00%

Volatility

VXX vs. ^VIX - Volatility Comparison

The current volatility for iPath Series B S&P 500 VIX Short-Term Futures ETN (VXX) is 8.29%, while CBOE Volatility Index (^VIX) has a volatility of 15.18%. This indicates that VXX experiences smaller price fluctuations and is considered to be less risky than ^VIX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VXX	^VIX	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.29%	15.18%	-6.89%
Volatility (6M) Calculated over the trailing 6-month period	40.88%	78.84%	-37.96%
Volatility (1Y) Calculated over the trailing 1-year period	55.57%	112.68%	-57.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	67.96%	123.93%	-55.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	70.96%	135.82%	-64.86%

Frequently Asked Questions

Can I hold both VXX and ^VIX in my portfolio?

VXX and ^VIX have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VXX or ^VIX?

^VIX has higher volatility (15.18%) compared to VXX (8.29%). In terms of maximum drawdown, VXX dropped -100.00% vs ^VIX's -88.70%.

Which has better risk-adjusted returns?

^VIX currently has the higher Sharpe Ratio (-0.08 vs -0.96), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.