USO vs VEA: Correlation
Measured on weekly returns over the past three years, United States Oil Fund (USO) and Vanguard FTSE Developed Markets ETF (VEA) carry a correlation of -0.27, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USO and VEA?
Across a 3-year window, the weekly returns of USO and VEA correlate at -0.27, negative, meaning they tend to move in opposite directions. The link has loosened recently: the 1-year correlation (-0.56) runs below the 3-year figure (-0.27). Stretching to 5 years gives -0.07, with an annualized covariance of -162.0 %².
Within USO's tracked universe of 165 assets, VEA comes in at #119 by 3-year correlation. The last year tells two different stories: USO led by 45.6 percentage points, +74.1% for USO against +28.5% for VEA. This link changes with the market regime, having swung between -0.61 and 0.33 on a rolling one-year basis. Risk is not evenly split, since USO carries 2.6 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.
USO vs VEA: side by side
| USO (United States Oil Fund) | VEA (Vanguard FTSE Developed Markets ETF) | |
|---|---|---|
| 1-year return | +74.1% | +28.5% |
| 5-year return | +168.6% | +63.5% |
| Volatility (ann.) | 39.4% | 15.1% |
| Beta vs S&P 500 | -0.20 | 0.79 |
| Max drawdown (3Y) | -32.5% | -13.5% |
| Dividend yield | – | 2.56% |
| Expense ratio | – | 0.03% |
| Assets under management | – | $314.9B |
| Sector / category | ETF · Commodities | ETF · International |
VEA is a Foreign Large Blend fund from Vanguard: $314.9B under management, 3769 holdings, a 0.03% expense ratio, a 2.56% trailing dividend yield.
Year-by-year returns
| Year | USO | VEA |
|---|---|---|
| 2022 | +29.0% | -15.3% |
| 2023 | -4.9% | +17.9% |
| 2024 | +13.4% | +3.1% |
| 2025 | -8.5% | +35.2% |
| 2026 | +88.0% | +18.3% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USO and VEA good diversifiers for each other?
Yes: at -0.27, the two have gone their own ways historically, which is what genuine diversification looks like.
FAQ
What is the correlation between USO and VEA?
As of 2026-08-27, the correlation of weekly returns between USO and VEA is -0.27 over 3 years, -0.56 over 1 year and -0.07 over 5 years.
Is VEA a good diversifier for USO?
Yes: at -0.27, the two have gone their own ways historically, which is what genuine diversification looks like.
What does a correlation of -0.27 mean?
A reading of -0.27 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/uso-vs-vea.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/uso-vs-vea/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: USO correlations · VEA correlations
