AGG vs USO: Correlation
Measured on weekly returns over the past three years, iShares Core US Aggregate Bond ETF (AGG) and United States Oil Fund (USO) carry a correlation of -0.28, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are AGG and USO?
Over the past 3 years, AGG and USO moved with a correlation of -0.28, which is negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.53) than the 3-year average (-0.28). Over 5 years the correlation is -0.20, and the annualized covariance of weekly returns is -57.9 %².
USO is close to the least connected end of AGG's tracked universe, ranking #34 of 34. Correlation aside, the last 12 months split them widely, with USO ahead by 71.8 points (+2.3% versus +74.1%). Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.51 to -0.01. One caveat on sizing: USO is 7.4 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.
AGG vs USO: side by side
| AGG (iShares Core US Aggregate Bond ETF) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +2.3% | +74.1% |
| 5-year return | -1.1% | +168.6% |
| Volatility (ann.) | 5.3% | 39.4% |
| Beta vs S&P 500 | 0.07 | -0.20 |
| Max drawdown (3Y) | -4.8% | -32.5% |
| Dividend yield | 4.05% | – |
| Expense ratio | 0.03% | – |
| Assets under management | $137.1B | – |
| Sector / category | ETF · Bonds | ETF · Commodities |
On the fund side, AGG sits in the Intermediate Core Bond category at iShares, with $137.1B under management, a 0.03% expense ratio, a 4.05% trailing dividend yield.
Year-by-year returns
| Year | AGG | USO |
|---|---|---|
| 2022 | -13.0% | +29.0% |
| 2023 | +5.7% | -4.9% |
| 2024 | +1.3% | +13.4% |
| 2025 | +7.2% | -8.5% |
| 2026 | +0.3% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are AGG and USO good diversifiers for each other?
Yes. With a correlation of -0.28, AGG and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between AGG and USO?
Using weekly returns as of 2026-08-27: -0.28 over 3 years, with -0.53 over the last year and -0.20 over 5 years.
Is USO a good diversifier for AGG?
Yes. With a correlation of -0.28, AGG and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.28 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.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/agg-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/agg-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: AGG correlations · USO correlations
