IEFA vs USO: Correlation
iShares Core MSCI EAFE ETF (IEFA) and United States Oil Fund (USO) show a negative relationship: their 3-year correlation of weekly returns is -0.26.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEFA and USO?
Over the past 3 years, IEFA and USO moved with a correlation of -0.26, 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 -0.26 over 3 years. Over 5 years the correlation is -0.08, and the annualized covariance of weekly returns is -154.0 %².
Among the 111 assets we track against IEFA, USO sits near the bottom by co-movement, at rank #108. Correlation aside, the last 12 months split them widely, with USO ahead by 52.3 points (+21.8% versus +74.1%). This link changes with the market regime, having swung between -0.58 and 0.31 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.
IEFA vs USO: side by side
| IEFA (iShares Core MSCI EAFE ETF) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +21.8% | +74.1% |
| 5-year return | +54.5% | +168.6% |
| Volatility (ann.) | 15.0% | 39.4% |
| Beta vs S&P 500 | 0.77 | -0.20 |
| Max drawdown (3Y) | -13.8% | -32.5% |
| Dividend yield | 3.35% | – |
| Expense ratio | 0.07% | – |
| Assets under management | $190.1B | – |
| Sector / category | ETF · International | ETF · Commodities |
IEFA is a Foreign Large Blend fund from iShares: $190.1B under management, 1620 holdings, a 0.07% expense ratio, a 3.35% trailing dividend yield.
Year-by-year returns
| Year | IEFA | USO |
|---|---|---|
| 2022 | -15.2% | +29.0% |
| 2023 | +18.0% | -4.9% |
| 2024 | +3.3% | +13.4% |
| 2025 | +32.1% | -8.5% |
| 2026 | +14.5% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEFA and USO good diversifiers for each other?
Yes: at -0.26, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between IEFA and USO?
Using weekly returns as of 2026-08-27: -0.26 over 3 years, with -0.54 over the last year and -0.08 over 5 years.
Is USO a good diversifier for IEFA?
Yes: at -0.26, the two have gone their own ways historically, which is what genuine diversification looks like.
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/iefa-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iefa-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IEFA correlations · USO correlations
