EDC vs. USO

Last updated Jun 4, 2026

EDC (Direxion Daily Emerging Markets Bull 3X Shares) and USO (United States Oil Fund LP) are both exchange-traded funds - EDC is a Leveraged Equities fund tracking the MSCI Emerging Markets Index (300%), while USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil. Both are passively managed. Over the past 10 years, EDC returned 8.70%/yr vs 4.07%/yr for USO. At a 0.34 correlation, their price movements are largely independent. EDC charges 1.33%/yr vs 0.86%/yr for USO.

Performance

EDC vs. USO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily Emerging Markets Bull 3X Shares (EDC) 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, EDC achieves a 82.36% return, which is significantly lower than USO's 103.67% return. Over the past 10 years, EDC has outperformed USO with an annualized return of 8.70%, while USO has yielded a comparatively lower 4.07% annualized return.

EDC

• 1D: -3.74%
• 1M: 26.16%
• YTD: 82.36%
• 6M: 92.21%
• 1Y: 200.25%
• 3Y*: 52.64%
• 5Y*: -0.27%
• 10Y*: 8.70%

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)

EDC vs. USO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDC Direxion Daily Emerging Markets Bull 3X Shares	82.36%	94.58%	-2.00%	7.48%	-60.25%	-20.81%	6.49%	43.92%	-49.87%	138.61%
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 EDC and USO is -0.32, 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	-0.32
Correlation (3Y) Calculated over the trailing 3-year period	-0.01
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 Dec 31, 2008	0.34

The correlation between EDC and USO shifts across timeframes, from -0.32 (1 year) to 0.34 (all time), reflecting how their relationship changes across market environments.

Return for Risk

EDC vs. USO — Risk / Return Rank

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

EDC

EDC Risk / Return Rank: 83
EDC Sharpe Ratio Rank: 92
EDC Sortino Ratio Rank: 73
EDC Omega Ratio Rank: 76
EDC Calmar Ratio Rank: 88
EDC Martin Ratio Rank: 87

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.

EDC vs. USO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily Emerging Markets Bull 3X Shares (EDC) 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.

	EDC	USO	Difference
Sharpe ratio: Return per unit of total volatility	3.38	2.31	+1.07
Sortino ratio: Return per unit of downside risk	3.33	2.89	+0.44
Omega ratio: Gain probability vs. loss probability	1.46	1.38	+0.08
Calmar ratio: Return relative to maximum drawdown	5.31	5.01	+0.30
Martin ratio: Return relative to average drawdown	18.68	9.42	+9.26
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EDC vs. USO - Sharpe Ratio Comparison

The current EDC Sharpe Ratio is 3.38, which is higher than the USO Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of EDC 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

	EDC	USO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.38	2.31	+1.07
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.00	0.68	-0.69
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.14	0.10	+0.04
Sharpe Ratio (All Time) Calculated using the full available price history	0.05	-0.18	+0.22

Drawdowns

EDC vs. USO - Drawdown Comparison

The maximum EDC drawdown since its inception was -92.54%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for EDC and USO.

Drawdown Indicators

	EDC	USO	Difference
Max Drawdown Largest peak-to-trough decline	-92.54%	-98.19%	+5.65%
Max Drawdown (1Y) Largest decline over 1 year	-37.98%	-20.39%	-17.59%
Max Drawdown (3Y) Largest decline over 3 years	-49.48%	-26.05%	-23.43%
Max Drawdown (5Y) Largest decline over 5 years	-80.99%	-36.23%	-44.76%
Max Drawdown (10Y) Largest decline over 10 years	-87.01%	-86.75%	-0.26%
Current Drawdown Current decline from peak	-61.29%	-85.01%	+23.72%
Average Drawdown Average peak-to-trough decline	-65.36%	-75.30%	+9.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.77%	10.82%	-0.05%

Volatility

EDC vs. USO - Volatility Comparison

Direxion Daily Emerging Markets Bull 3X Shares (EDC) has a higher volatility of 25.80% compared to United States Oil Fund LP (USO) at 14.87%. This indicates that EDC's price experiences larger fluctuations and is considered to be riskier than USO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EDC	USO	Difference
Volatility (1M) Calculated over the trailing 1-month period	25.80%	14.87%	+10.93%
Volatility (6M) Calculated over the trailing 6-month period	51.94%	38.23%	+13.71%
Volatility (1Y) Calculated over the trailing 1-year period	59.67%	44.20%	+15.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	56.68%	36.06%	+20.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	60.69%	39.00%	+21.69%

EDC vs. USO - Expense Ratio Comparison

EDC has a 1.33% expense ratio, which is higher than USO's 0.86% expense ratio.

Dividends

EDC vs. USO - Dividend Comparison

EDC's dividend yield for the trailing twelve months is around 0.93%, while USO has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
EDC Direxion Daily Emerging Markets Bull 3X Shares	0.93%	1.79%	3.94%	3.54%	0.00%	0.18%	0.44%	0.97%	0.78%	0.25%
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%

Frequently Asked Questions

Can I hold both EDC and USO in my portfolio?

EDC and USO have a correlation of -0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EDC or USO?

EDC has higher volatility (25.80%) compared to USO (14.87%). In terms of maximum drawdown, EDC dropped -92.54% vs USO's -98.19%.

Which ETF is better, EDC or USO?

On 10-year performance, EDC leads with 8.70% vs 4.07% for USO. On fees, USO is cheaper at 0.86% per year. On volatility, USO has been the lower-risk option at 14.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EDC or USO?

Over the 10-year period, EDC has performed better with a 8.70% return vs 4.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EDC or USO?

USO is cheaper with a 0.86% expense ratio, compared with 1.33% for EDC.

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

EDC has the higher dividend yield at 0.93%, compared with 0.00% for USO.

What is the main difference between EDC and USO?

EDC is categorized as Leveraged Equities, while USO is Oil & Gas. EDC tracks MSCI Emerging Markets Index (300%), while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: Direxion and USCF. Their fees differ too: 1.33% for EDC and 0.86% for USO.

Which has better risk-adjusted returns?

EDC currently has the higher Sharpe Ratio (3.38 vs 2.31), 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.