BABO vs. USO
BABO (YieldMax BABA Option Income Strategy ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - BABO is a Derivative Income fund actively managed by YieldMax, while USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil. BABO is actively managed, while USO is passively managed. Over the past year, BABO returned 8.62% vs 101.55% for USO. At a correlation of -0.04, they often move in opposite directions. BABO charges 0.99%/yr vs 0.86%/yr for USO.
Performance
BABO vs. USO - Performance Comparison
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Returns By Period
In the year-to-date period, BABO achieves a -12.48% return, which is significantly lower than USO's 103.67% return.
BABO
- 1D
- -1.54%
- 1M
- -4.06%
- YTD
- -12.48%
- 6M
- -16.80%
- 1Y
- 8.62%
- 3Y*
- —
- 5Y*
- —
- 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%
BABO vs. USO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | |
|---|---|---|---|
BABO YieldMax BABA Option Income Strategy ETF | -12.48% | 46.84% | -0.08% |
USO United States Oil Fund LP | 103.67% | -8.46% | 0.25% |
Correlation
The correlation between BABO and USO is -0.15, 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 | -0.15 |
Correlation (All Time) Calculated using the full available price history since Aug 9, 2024 | -0.04 |
The correlation between BABO and USO shifts across timeframes, from -0.15 (1 year) to -0.04 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
BABO vs. USO — Risk / Return Rank
BABO
USO
BABO vs. USO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for YieldMax BABA Option Income Strategy ETF (BABO) 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.
| BABO | USO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.06 | ||
| Sortino ratioReturn per unit of downside risk | -2.25 | ||
| Omega ratioGain probability vs. loss probability | 1.07 | 1.38 | -0.31 |
| Calmar ratioReturn relative to maximum drawdown | 0.29 | 5.01 | -4.71 |
| Martin ratioReturn relative to average drawdown | 0.60 | 9.42 | -8.82 |
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
| BABO | USO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.25 | 2.31 | -2.06 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | — | 0.68 | — |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | — | 0.10 | — |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.40 | -0.18 | +0.58 |
Drawdowns
BABO vs. USO - Drawdown Comparison
The maximum BABO drawdown since its inception was -29.37%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for BABO and USO.
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Drawdown Indicators
| BABO | USO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -29.37% | -98.19% | +68.82% |
Max Drawdown (1Y)Largest decline over 1 year | -29.37% | -20.39% | -8.98% |
Max Drawdown (3Y)Largest decline over 3 years | — | -26.05% | — |
Max Drawdown (5Y)Largest decline over 5 years | — | -36.23% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -86.75% | — |
Current DrawdownCurrent decline from peak | -26.47% | -85.01% | +58.54% |
Average DrawdownAverage peak-to-trough decline | -13.68% | -75.30% | +61.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 14.49% | 10.82% | +3.67% |
Volatility
BABO vs. USO - Volatility Comparison
The current volatility for YieldMax BABA Option Income Strategy ETF (BABO) is 12.03%, while United States Oil Fund LP (USO) has a volatility of 14.87%. This indicates that BABO 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
| BABO | USO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.03% | 14.87% | -2.84% |
Volatility (6M)Calculated over the trailing 6-month period | 24.11% | 38.23% | -14.12% |
Volatility (1Y)Calculated over the trailing 1-year period | 35.12% | 44.20% | -9.08% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 36.77% | 36.06% | +0.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 36.77% | 39.00% | -2.23% |
BABO vs. USO - Expense Ratio Comparison
BABO has a 0.99% expense ratio, which is higher than USO's 0.86% expense ratio.
Dividends
BABO vs. USO - Dividend Comparison
BABO's dividend yield for the trailing twelve months is around 85.81%, while USO has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 |
|---|---|---|---|
BABO YieldMax BABA Option Income Strategy ETF | 85.81% | 85.50% | 20.65% |
USO United States Oil Fund LP | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
BABO and USO have a correlation of -0.15, 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 BABO (12.03%). In terms of maximum drawdown, BABO dropped -29.37% vs USO's -98.19%.
On 1-year performance, USO leads with 101.55% vs 8.62% for BABO. On fees, USO is cheaper at 0.86% per year. On volatility, BABO has been the lower-risk option at 12.03%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 1-year period, USO has performed better with a 101.55% return vs 8.62%. 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 0.99% for BABO.
BABO has the higher dividend yield at 85.81%, compared with 0.00% for USO.
BABO is categorized as Derivative Income, while USO is Oil & Gas. They also come from different issuers: YieldMax and USCF. Their fees differ too: 0.99% for BABO and 0.86% for USO.
USO currently has the higher Sharpe Ratio (2.31 vs 0.25), 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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