IEMG vs USO: Correlation
How closely do iShares Core MSCI Emerging Markets ETF (IEMG) and United States Oil Fund (USO) trade together? Their weekly returns over three years give a correlation of -0.26, which is negative.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IEMG and USO?
Over the past 3 years, IEMG and USO moved with a correlation of -0.26, which is negative, meaning they tend to move in opposite directions. The past 12 months show a weaker link (-0.52) than the 3-year average (-0.26). Over 5 years the correlation is -0.07, and the annualized covariance of weekly returns is -181.9 %².
USO is close to the least connected end of IEMG's tracked universe, ranking #65 of 68. Correlation aside, the last 12 months split them widely, with USO ahead by 38.1 points (+36.0% versus +74.1%). This link changes with the market regime, having swung between -0.60 and 0.35 on a rolling one-year basis. Risk is not evenly split, since USO carries 2.3 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.
IEMG vs USO: side by side
| IEMG (iShares Core MSCI Emerging Markets ETF) | USO (United States Oil Fund) | |
|---|---|---|
| 1-year return | +36.0% | +74.1% |
| 5-year return | +50.7% | +168.6% |
| Volatility (ann.) | 17.4% | 39.4% |
| Beta vs S&P 500 | 0.84 | -0.20 |
| Max drawdown (3Y) | -17.2% | -32.5% |
| Dividend yield | 2.31% | – |
| Expense ratio | 0.09% | – |
| Assets under management | $152.2B | – |
| Sector / category | ETF · International | ETF · Commodities |
On the fund side, IEMG sits in the Diversified Emerging Mkts category at iShares, with $152.2B under management, 1824 holdings, a 0.09% expense ratio, a 2.31% trailing dividend yield.
Year-by-year returns
| Year | IEMG | USO |
|---|---|---|
| 2022 | -20.0% | +29.0% |
| 2023 | +11.5% | -4.9% |
| 2024 | +6.5% | +13.4% |
| 2025 | +32.6% | -8.5% |
| 2026 | +23.6% | +88.0% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IEMG 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 IEMG and USO?
As of 2026-08-27, the correlation of weekly returns between IEMG and USO is -0.26 over 3 years, -0.52 over 1 year and -0.07 over 5 years.
Is USO a good diversifier for IEMG?
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?
On the −1 to +1 scale, -0.26 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/iemg-vs-uso.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/iemg-vs-uso/)
No key needed, free to use. Full endpoint list in the API documentation.
Related comparisons
Hubs: IEMG correlations · USO correlations
