IEF vs USO: Correlation
Measured on weekly returns over the past three years, iShares 7-10 Year Treasury Bond ETF (IEF) and United States Oil Fund (USO) carry a correlation of -0.29, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEF and USO?
Over the past 3 years, IEF and USO moved with a correlation of -0.29, which is negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.54 versus -0.29 over 3 years. Over 5 years the correlation is -0.21, and the annualized covariance of weekly returns is -74.1 %².
Out of 48 assets tracked against IEF, USO lands near the bottom at #46. Their recent paths diverged sharply: over the last 12 months USO outperformed by 73.2 percentage points (+0.9% for IEF against +74.1% for USO). The rolling one-year correlation moved between -0.53 and -0.09 over the past three years, a moderate range. Risk is not evenly split, since USO carries 6.1 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.
IEF vs USO: side by side
| IEF (iShares 7-10 Year Treasury Bond ETF) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +0.9% | +74.1% |
| 5-year return | -7.9% | +168.6% |
| Volatility (ann.) | 6.5% | 39.4% |
| Beta vs S&P 500 | 0.04 | -0.20 |
| Max drawdown (3Y) | -6.9% | -32.5% |
| Dividend yield | 3.96% | – |
| Expense ratio | 0.15% | – |
| Assets under management | $47.2B | – |
| Sector / category | ETF · Bonds | ETF · Commodities |
IEF, iShares's Long Government fund, carries $47.2B under management, a 0.15% expense ratio, a 3.96% trailing dividend yield.
Year-by-year returns
| Year | IEF | USO |
|---|---|---|
| 2022 | -15.2% | +29.0% |
| 2023 | +3.6% | -4.9% |
| 2024 | -0.6% | +13.4% |
| 2025 | +8.0% | -8.5% |
| 2026 | -0.8% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEF and USO good diversifiers for each other?
Yes. With a correlation of -0.29, IEF and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
FAQ
What is the correlation between IEF and USO?
The IEF/USO correlation stands at -0.29 on a 3-year window (1 year: -0.54, 5 years: -0.21), computed from weekly returns as of 2026-08-27.
Is USO a good diversifier for IEF?
Yes. With a correlation of -0.29, IEF and USO have moved largely independently, which makes them a genuinely diversifying pair by historical standards.
What does a correlation of -0.29 mean?
A reading of -0.29 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/ief-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/ief-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IEF correlations · USO correlations
