ARB vs. USO
ARB (AltShares Merger Arbitrage ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - ARB is a Hedge Fund fund tracking the Water Island Merger Arbitrage USD Hedged Index, while USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil. Both are passively managed. Over the past 5 years, ARB returned 3.87%/yr vs 24.41%/yr for USO. At a 0.03 correlation, their price movements are largely independent. ARB charges 0.87%/yr vs 0.86%/yr for USO.
Performance
ARB vs. USO - Performance Comparison
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Returns By Period
In the year-to-date period, ARB achieves a 1.70% return, which is significantly lower than USO's 103.67% return.
ARB
- 1D
- 0.03%
- 1M
- 0.35%
- YTD
- 1.70%
- 6M
- 2.28%
- 1Y
- 4.90%
- 3Y*
- 6.40%
- 5Y*
- 3.87%
- 10Y*
- —
USO
- 1D
- 2.62%
- 1M
- -4.57%
- YTD
- 103.67%
- 6M
- 99.35%
- 1Y
- 101.55%
- 3Y*
- 29.98%
- 5Y*
- 24.41%
- 10Y*
- 4.07%
ARB vs. USO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|---|---|
ARB AltShares Merger Arbitrage ETF | 1.70% | 6.05% | 4.07% | 3.85% | 2.67% | 3.16% | 3.78% |
USO United States Oil Fund LP | 103.67% | -8.46% | 13.35% | -4.94% | 28.97% | 64.68% | 61.26% |
Correlation
The correlation between ARB and USO is -0.12, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.12 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.03 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.01 |
Correlation (All Time) Calculated using the full available price history since May 8, 2020 | 0.03 |
The correlation between ARB and USO shifts across timeframes, from -0.12 (1 year) to 0.03 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
ARB vs. USO — Risk / Return Rank
ARB
USO
ARB vs. USO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for AltShares Merger Arbitrage ETF (ARB) and United States Oil Fund LP (USO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| ARB | USO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.61 | ||
| Sortino ratioReturn per unit of downside risk | -0.13 | ||
| Omega ratioGain probability vs. loss probability | 1.35 | 1.38 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 7.17 | 5.01 | +2.16 |
| Martin ratioReturn relative to average drawdown | 20.90 | 9.42 | +11.48 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ARB | USO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.70 | 2.31 | -0.61 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.88 | 0.68 | +0.20 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.10 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.95 | -0.18 | +1.13 |
Drawdowns
ARB vs. USO - Drawdown Comparison
The maximum ARB drawdown since its inception was -5.60%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for ARB and USO.
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Drawdown Indicators
| ARB | USO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -5.60% | -98.19% | +92.59% |
Max Drawdown (1Y)Largest decline over 1 year | -0.69% | -20.39% | +19.70% |
Max Drawdown (3Y)Largest decline over 3 years | -2.13% | -26.05% | +23.92% |
Max Drawdown (5Y)Largest decline over 5 years | -5.60% | -36.23% | +30.63% |
Max Drawdown (10Y)Largest decline over 10 years | — | -86.75% | — |
Current DrawdownCurrent decline from peak | -0.49% | -85.01% | +84.52% |
Average DrawdownAverage peak-to-trough decline | -0.94% | -75.30% | +74.36% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.24% | 10.82% | -10.58% |
Volatility
ARB vs. USO - Volatility Comparison
The current volatility for AltShares Merger Arbitrage ETF (ARB) is 1.28%, while United States Oil Fund LP (USO) has a volatility of 14.87%. This indicates that ARB experiences smaller price fluctuations and is considered to be less risky than USO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ARB | USO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.28% | 14.87% | -13.59% |
Volatility (6M)Calculated over the trailing 6-month period | 2.38% | 38.23% | -35.85% |
Volatility (1Y)Calculated over the trailing 1-year period | 2.89% | 44.20% | -41.31% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 4.40% | 36.06% | -31.66% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.40% | 39.00% | -34.60% |
ARB vs. USO - Expense Ratio Comparison
ARB has a 0.87% expense ratio, which is higher than USO's 0.86% expense ratio.
Dividends
ARB vs. USO - Dividend Comparison
ARB's dividend yield for the trailing twelve months is around 0.43%, while USO has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|---|---|
ARB AltShares Merger Arbitrage ETF | 0.43% | 0.43% | 1.12% | 0.00% | 4.18% | 0.00% | 2.87% |
USO United States Oil Fund LP | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
ARB and USO have a correlation of -0.12, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USO has higher volatility (14.87%) compared to ARB (1.28%). In terms of maximum drawdown, ARB dropped -5.60% vs USO's -98.19%.
On 5-year performance, USO leads with 24.41% vs 3.87% for ARB. On fees, USO is cheaper at 0.86% per year. On volatility, ARB has been the lower-risk option at 1.28%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, USO has performed better with a 24.41% return vs 3.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USO is cheaper with a 0.86% expense ratio, compared with 0.87% for ARB.
ARB has the higher dividend yield at 0.43%, compared with 0.00% for USO.
ARB is categorized as Hedge Fund, while USO is Oil & Gas. ARB tracks Water Island Merger Arbitrage USD Hedged Index, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: Water Island Capital Partners LP and USCF. Their fees differ too: 0.87% for ARB and 0.86% for USO.
USO currently has the higher Sharpe Ratio (2.31 vs 1.70), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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