DGS vs. USO

Last updated Jun 4, 2026

DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) and USO (United States Oil Fund LP) are both exchange-traded funds - DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index, while USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil. Both are passively managed. Over the past 10 years, DGS returned 9.93%/yr vs 4.07%/yr for USO. At a 0.31 correlation, their price movements are largely independent. DGS charges 0.58%/yr vs 0.86%/yr for USO.

Performance

DGS vs. USO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) and United States Oil Fund LP (USO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DGS achieves a 14.53% return, which is significantly lower than USO's 103.67% return. Over the past 10 years, DGS has outperformed USO with an annualized return of 9.93%, while USO has yielded a comparatively lower 4.07% annualized return.

DGS

• 1D: -1.37%
• 1M: 2.58%
• YTD: 14.53%
• 6M: 15.57%
• 1Y: 27.26%
• 3Y*: 16.17%
• 5Y*: 7.85%
• 10Y*: 9.93%

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%

*Multi-year figures are annualized to reflect compound growth (CAGR)

DGS vs. USO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DGS WisdomTree Emerging Markets SmallCap Dividend Fund	14.53%	21.18%	1.13%	19.08%	-12.35%	15.33%	4.06%	18.90%	-16.52%	37.47%
USO United States Oil Fund LP	103.67%	-8.46%	13.35%	-4.94%	28.97%	64.68%	-67.79%	32.61%	-19.57%	2.47%

Correlation

The correlation between DGS and USO is -0.36, 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	-0.36
Correlation (3Y) Calculated over the trailing 3-year period	-0.02
Correlation (5Y) Calculated over the trailing 5-year period	0.10
Correlation (10Y) Calculated over the trailing 10-year period	0.20
Correlation (All Time) Calculated using the full available price history since Oct 31, 2007	0.31

The correlation between DGS and USO shifts across timeframes, from -0.36 (1 year) to 0.31 (all time), reflecting how their relationship changes across market environments.

Return for Risk

DGS vs. USO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

DGS

DGS Risk / Return Rank: 51
DGS Sharpe Ratio Rank: 50
DGS Sortino Ratio Rank: 49
DGS Omega Ratio Rank: 50
DGS Calmar Ratio Rank: 54
DGS Martin Ratio Rank: 53

USO

USO Risk / Return Rank: 66
USO Sharpe Ratio Rank: 69
USO Sortino Ratio Rank: 60
USO Omega Ratio Rank: 61
USO Calmar Ratio Rank: 87
USO Martin Ratio Rank: 54

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

DGS vs. USO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) 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.

	DGS	USO	Difference
Sharpe ratio Return per unit of total volatility	1.76	2.31	-0.55
Sortino ratio Return per unit of downside risk	2.43	2.89	-0.46
Omega ratio Gain probability vs. loss probability	1.32	1.38	-0.06
Calmar ratio Return relative to maximum drawdown	2.72	5.01	-2.29
Martin ratio Return relative to average drawdown	9.16	9.42	-0.26
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DGS vs. USO - Sharpe Ratio Comparison

The current DGS Sharpe Ratio is 1.76, which is comparable to the USO Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of DGS and USO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	DGS	USO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.76	2.31	-0.55
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.53	0.68	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	0.10	+0.47
Sharpe Ratio (All Time) Calculated using the full available price history	0.23	-0.18	+0.40

Drawdowns

DGS vs. USO - Drawdown Comparison

The maximum DGS drawdown since its inception was -61.83%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for DGS and USO.

Drawdown Indicators

	DGS	USO	Difference
Max Drawdown Largest peak-to-trough decline	-61.83%	-98.19%	+36.36%
Max Drawdown (1Y) Largest decline over 1 year	-10.06%	-20.39%	+10.33%
Max Drawdown (3Y) Largest decline over 3 years	-19.31%	-26.05%	+6.74%
Max Drawdown (5Y) Largest decline over 5 years	-24.86%	-36.23%	+11.37%
Max Drawdown (10Y) Largest decline over 10 years	-44.08%	-86.75%	+42.67%
Current Drawdown Current decline from peak	-1.40%	-85.01%	+83.61%
Average Drawdown Average peak-to-trough decline	-12.59%	-75.30%	+62.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	10.82%	-7.84%

Volatility

DGS vs. USO - Volatility Comparison

The current volatility for WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) is 5.24%, while United States Oil Fund LP (USO) has a volatility of 14.87%. This indicates that DGS 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.

Volatility by Period

	DGS	USO	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.24%	14.87%	-9.63%
Volatility (6M) Calculated over the trailing 6-month period	13.03%	38.23%	-25.20%
Volatility (1Y) Calculated over the trailing 1-year period	15.56%	44.20%	-28.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.87%	36.06%	-21.19%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.32%	39.00%	-21.68%

DGS vs. USO - Expense Ratio Comparison

DGS has a 0.58% expense ratio, which is lower than USO's 0.86% expense ratio.

Dividends

DGS vs. USO - Dividend Comparison

DGS's dividend yield for the trailing twelve months is around 3.21%, while USO has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DGS WisdomTree Emerging Markets SmallCap Dividend Fund	3.21%	3.45%	3.36%	4.55%	5.34%	3.98%	3.69%	3.95%	4.24%	2.81%	3.42%	3.28%
USO United States Oil Fund LP	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DGS and USO in my portfolio?

DGS and USO have a correlation of -0.36, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DGS or USO?

USO has higher volatility (14.87%) compared to DGS (5.24%). In terms of maximum drawdown, DGS dropped -61.83% vs USO's -98.19%.

Which ETF is better, DGS or USO?

On 10-year performance, DGS leads with 9.93% vs 4.07% for USO. On fees, DGS is cheaper at 0.58% per year. On volatility, DGS has been the lower-risk option at 5.24%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DGS or USO?

Over the 10-year period, DGS has performed better with a 9.93% return vs 4.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DGS or USO?

DGS is cheaper with a 0.58% expense ratio, compared with 0.86% for USO.

Which ETF pays a higher dividend yield, DGS or USO?

DGS has the higher dividend yield at 3.21%, compared with 0.00% for USO.

What is the main difference between DGS and USO?

DGS is categorized as Emerging Markets Diversified, while USO is Oil & Gas. DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: WisdomTree and USCF. Their fees differ too: 0.58% for DGS and 0.86% for USO.

Which has better risk-adjusted returns?

USO currently has the higher Sharpe Ratio (2.31 vs 1.76), 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.