USO vs VWO: Correlation
United States Oil Fund (USO) and Vanguard FTSE Emerging Markets ETF (VWO) show a negative relationship: their 3-year correlation of weekly returns is -0.22.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are USO and VWO?
Across a 3-year window, the weekly returns of USO and VWO correlate at -0.22, negative, meaning they tend to move in opposite directions. Lately the two have drifted apart, with the 1-year correlation at -0.51 versus -0.22 over 3 years. Stretching to 5 years gives -0.04, with an annualized covariance of -134.1 %².
By 3-year correlation, VWO places #70 of the 165 assets tracked against USO. The last year tells two different stories: USO led by 52.5 percentage points, +74.1% for USO against +21.6% for VWO. Do not treat this figure as fixed: across three years the rolling one-year correlation ranged all the way from -0.56 to 0.35. 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 VWO: side by side
| USO (United States Oil Fund) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +74.1% | +21.6% |
| 5-year return | +168.6% | +38.2% |
| Volatility (ann.) | 39.4% | 15.2% |
| Beta vs S&P 500 | -0.20 | 0.75 |
| Max drawdown (3Y) | -32.5% | -17.4% |
| Dividend yield | – | 2.36% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $162.0B |
| Sector / category | ETF · Commodities | ETF · International |
On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Year-by-year returns
| Year | USO | VWO |
|---|---|---|
| 2022 | +29.0% | -18.0% |
| 2023 | -4.9% | +9.3% |
| 2024 | +13.4% | +10.6% |
| 2025 | -8.5% | +25.6% |
| 2026 | +88.0% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are USO and VWO good diversifiers for each other?
By historical standards, yes. A correlation of -0.22 means the two rarely move for the same reasons.
FAQ
What is the correlation between USO and VWO?
The USO/VWO correlation stands at -0.22 on a 3-year window (1 year: -0.51, 5 years: -0.04), computed from weekly returns as of 2026-08-27.
Is VWO a good diversifier for USO?
By historical standards, yes. A correlation of -0.22 means the two rarely move for the same reasons.
What does a correlation of -0.22 mean?
Correlation ranges from −1 to +1. Values near +1 mean two assets move together, near 0 that they move independently, and negative values that they tend to move in opposite directions. It measures co-movement, not performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/uso-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/uso-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: USO correlations · VWO correlations
