At a glance
VXZ charges 0.89% a year, above the 0.78% average of the 3 funds most like it (the 2nd cheapest of 4). It has $35.1M in assets, the 3rd largest of that group. Over the past year it returned −15.6% with distributions reinvested (S&P 500: +11.5%), 2nd of those 4 funds; over three years it returned −14.7% a year. At its worst it fell 13.8% in the 2022 bear market (S&P 500: 24.5%), and is still below its earlier high.
The short version
iPath Series B S&P 500® VIX Mid-Term Futures ETN (VXZ) is an exchange-traded note from Barclays Capital. It tracks mid-term futures on the VIX, often called Wall Street's "fear gauge." Because it is a note, it is unsecured bank debt rather than a fund. It has tended to rise when stocks fall. However, it lost about 54% over the five years to October 27, 2026, and it charges 0.89% a year.
Price history
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VXZ -15.6% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| VXZ price data to Oct 27, 2026 | -12.7% | -15.6% | -14.7% | -14.5% | — | -14.9% |
- Over the year to Oct 27, 2026, VXZ returned -15.6%, 2nd of 4 among similar funds.
- Its 5-year annualized return was -14.5%.
- Its worst full calendar year was 2023 (-44.0%); its best was 2025 (+5.7%).
- The deepest fall in its price history was 69% (Jun 26, 2020 to Oct 13, 2026), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -12.7% |
| 2025 | +5.7% |
| 2024 | -12.7% |
| 2023 | -44.0% |
| 2022 | +0.5% |
| 2021 | -16.4% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 21.6% over that stretch · deepest drop along the way 13.8%, not recovered by the end of the data |
How it works
VXZ is not a fund. It is an exchange-traded note (ETN), which is an unsecured promise from Barclays Capital to pay the return of an S&P 500 VIX mid-term futures index, minus fees. It owns no stocks, bonds or futures for its holders, so there are no holdings to list and no fund prospectus or holdings reports. If the bank could not pay, holders could lose money no matter how the index did. Barclays can also redeem the notes early.
The VIX measures how much the S&P 500 is expected to swing over the next 30 days, based on options prices. It often jumps when stocks drop. Nobody can own the VIX directly, so the index follows VIX futures, which are contracts priced on where the VIX will be at a later date. "Mid-term" means it uses contracts several months out rather than the nearest month. That has made it less extreme than short-term versions. In the year to October 27, 2026, VXZ fell 15.6%, while the short-term ProShares VIX Short-Term Futures ETF (VIXY) fell 44.2%.
Futures contracts expire, so an index like this keeps replacing contracts that are close to expiring with later ones. Later contracts often cost more than nearer ones in calm markets. When they do, this "rolling" tends to pull returns down over time. VXZ pays no distributions, so all gains and losses show up in the note's price.
What it really costs
- VXZ charges 0.89% a year, versus an average of 0.78% for the similar funds below (2nd of 4, cheapest first).
Structure and tax notes
- An exchange-traded note: unsecured debt of the issuing bank, not a fund. It owns no assets on investors’ behalf; it pays the index return minus fees only as long as the issuer can pay, so the bank’s credit matters, and the issuer can redeem the notes early.
In a retirement portfolio
Between stock-market sell-offs its value has tended to wear away, and by October 13, 2026 it was 69% below its June 2020 high, so it has worked mainly as a short-term hedge.
VXZ is built to gain when stocks are under stress. Its one-year beta of -0.71 as of October 27, 2026 shows that it tended to move opposite the broad market. During the 2022 bear market it gained 21.6%. Between sell-offs, though, it lost ground. It fell 44% in 2023 and lost 14.5% a year over the five years to October 27, 2026. It also fell 69% from June 2020 to October 2026 without recovering. Its price data start in June 2020, so the 2008 and 2020 crashes are not covered. Someone who needed cash from it in a calm stretch would probably take a loss. It pays no income and costs 0.89% a year, against a peer average of 0.78%. As an ETN, it also depends on Barclays Capital's credit. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Active traders who want short-term protection against stock sell-offs. Its one-year beta was -0.71 as of October 27, 2026.
- Traders who want VIX exposure with milder swings than short-term products. It fell 15.6% over one year, against 44.2% for VIXY.
- Volatility traders who watch costs. Its 0.89% expense ratio is below the 1.10% charged by VIXM, which follows a similar mid-term strategy.
Look elsewhere if
- Long-term retirement savers. It lost about 54% over the five years to October 27, 2026, and has not recovered from a 69% drop.
- Anyone seeking income. VXZ has recorded no distributions, so returns come only from price changes.
- Investors wary of credit risk. As an ETN, it is unsecured Barclays Capital debt, and the issuer can redeem it early.
Close alternatives
Matched by legacy category (no holdings report for this fund).
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
Is VXZ a good long-term investment?
VXZ's record shows it has been hard to hold for long periods. As of October 27, 2026, it returned -14.5% a year over five years, a total loss of about 54%. In October 2026 it was 69% below its June 2020 high. VIX futures indexes tend to lose value in calm markets as contracts are rolled forward. Its main use has been short bursts of protection, such as the 2022 bear market, when it gained 21.6%.
What's the difference between VXZ and VIXM?
Both follow mid-term VIX futures, but they are built differently. VXZ is an ETN, which means it is debt issued by Barclays Capital. ProShares VIX Mid-Term Futures ETF (VIXM) is an ETF. VXZ costs 0.89% a year, compared with 1.10% for VIXM. Their returns have been close. As of October 27, 2026, VXZ returned -15.6% over one year and -14.7% a year over three years. VIXM returned -15.9% and -15.4% over the same periods.
Does VXZ pay dividends?
No. VXZ has recorded no distributions. As an exchange-traded note, it holds no assets that produce income. It simply promises to pay the return of its VIX futures index, minus fees. Any gain or loss comes only from changes in the note's price, so it offers nothing to investors who want regular income. Holders who want cash from it have to give up some or all of their position.
Does VXZ go up when the stock market crashes?
It has tended to, but not reliably. Its one-year beta was -0.71 as of October 27, 2026, which means it generally moved opposite the broad market. During the 2022 bear market, from January 3 to October 12, 2022, it gained 21.6%. Even then it swung, falling 13.8% between June and August 2022. Its price history starts in June 2020, so it does not show how VXZ behaved in the COVID crash.
What happens to VXZ if Barclays goes bankrupt?
Holders could lose money even if the index did well. VXZ is unsecured debt of Barclays Capital, not a fund, and it owns no assets for its holders. That means its value depends on the bank's ability to pay. Barclays can also redeem the notes early. Separately, the price itself is volatile. Its three-year volatility was 28.9% as of October 27, 2026, and its deepest drop was 69%.