EFA vs USO: Correlation
Measured on weekly returns over the past three years, iShares MSCI EAFE ETF (EFA) and United States Oil Fund (USO) carry a correlation of -0.26, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are EFA and USO?
On 3 years of weekly data the EFA/USO correlation comes out at -0.26, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.55 versus -0.26 over 3 years. The 5-year figure is -0.08, and annualized covariance runs at -154.6 %².
USO is close to the least connected end of EFA's tracked universe, ranking #106 of 109. The last year tells two different stories: USO led by 52.2 percentage points, +21.9% for EFA against +74.1% for USO. This link changes with the market regime, having swung between -0.59 and 0.30 on a rolling one-year basis. Note the risk asymmetry: USO runs 2.6 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
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.
EFA vs USO: side by side
| EFA (iShares MSCI EAFE ETF) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +21.9% | +74.1% |
| 5-year return | +56.7% | +168.6% |
| Volatility (ann.) | 14.9% | 39.4% |
| Beta vs S&P 500 | 0.77 | -0.20 |
| Max drawdown (3Y) | -14.1% | -32.5% |
| Dividend yield | 3.19% | – |
| Expense ratio | 0.32% | – |
| Assets under management | $78.0B | – |
| Sector / category | ETF · International | ETF · Commodities |
EFA is a Foreign Large Blend fund from iShares: $78.0B under management, 666 holdings, a 0.32% expense ratio, a 3.19% trailing dividend yield.
Year-by-year returns
| Year | EFA | USO |
|---|---|---|
| 2022 | -14.4% | +29.0% |
| 2023 | +18.4% | -4.9% |
| 2024 | +3.5% | +13.4% |
| 2025 | +31.5% | -8.5% |
| 2026 | +14.3% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are EFA and USO good diversifiers for each other?
Yes. With a correlation of -0.26, EFA and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between EFA and USO?
As of 2026-08-27, the correlation of weekly returns between EFA and USO is -0.26 over 3 years, -0.55 over 1 year and -0.08 over 5 years.
Is USO a good diversifier for EFA?
Yes. With a correlation of -0.26, EFA and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.26 mean?
A reading of -0.26 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/efa-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/efa-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: EFA correlations · USO correlations
