GEM vs. USO

Last updated Jun 4, 2026

GEM (Goldman Sachs ActiveBeta Emerging Markets Equity ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - GEM is a Emerging Markets Equities fund tracking the Goldman Sachs ActiveBeta Emerging Markets Equity 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, GEM returned 10.00%/yr vs 4.07%/yr for USO. At a 0.22 correlation, their price movements are largely independent. GEM charges 0.45%/yr vs 0.86%/yr for USO.

Performance

GEM vs. USO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) 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, GEM achieves a 27.56% return, which is significantly lower than USO's 103.67% return. Over the past 10 years, GEM has outperformed USO with an annualized return of 10.00%, while USO has yielded a comparatively lower 4.07% annualized return.

GEM

• 1D: -1.04%
• 1M: 9.44%
• YTD: 27.56%
• 6M: 30.41%
• 1Y: 54.83%
• 3Y*: 23.85%
• 5Y*: 7.91%
• 10Y*: 10.00%

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)

GEM vs. USO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF	27.56%	33.43%	6.66%	11.82%	-21.33%	-0.19%	13.23%	17.79%	-14.25%	36.43%
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 GEM and USO is -0.33, 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	-0.33
Correlation (3Y) Calculated over the trailing 3-year period	-0.02
Correlation (5Y) Calculated over the trailing 5-year period	0.09
Correlation (10Y) Calculated over the trailing 10-year period	0.20
Correlation (All Time) Calculated using the full available price history since Sep 30, 2015	0.22

The correlation between GEM and USO shifts across timeframes, from -0.33 (1 year) to 0.22 (all time), reflecting how their relationship changes across market environments.

Return for Risk

GEM vs. USO — Risk / Return Rank

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

GEM

GEM Risk / Return Rank: 82
GEM Sharpe Ratio Rank: 85
GEM Sortino Ratio Rank: 81
GEM Omega Ratio Rank: 83
GEM Calmar Ratio Rank: 79
GEM Martin Ratio Rank: 80

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.

GEM vs. USO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) 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.

	GEM	USO	Difference
Sharpe ratio: Return per unit of total volatility	2.82	2.31	+0.51
Sortino ratio: Return per unit of downside risk	3.68	2.89	+0.79
Omega ratio: Gain probability vs. loss probability	1.51	1.38	+0.13
Calmar ratio: Return relative to maximum drawdown	4.08	5.01	-0.92
Martin ratio: Return relative to average drawdown	15.81	9.42	+6.39
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

GEM vs. USO - Sharpe Ratio Comparison

The current GEM Sharpe Ratio is 2.82, which is comparable to the USO Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of GEM 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

	GEM	USO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.82	2.31	+0.51
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	0.68	-0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	0.10	+0.42
Sharpe Ratio (All Time) Calculated using the full available price history	0.53	-0.18	+0.70

Drawdowns

GEM vs. USO - Drawdown Comparison

The maximum GEM drawdown since its inception was -37.02%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for GEM and USO.

Drawdown Indicators

	GEM	USO	Difference
Max Drawdown Largest peak-to-trough decline	-37.02%	-98.19%	+61.17%
Max Drawdown (1Y) Largest decline over 1 year	-13.50%	-20.39%	+6.89%
Max Drawdown (3Y) Largest decline over 3 years	-16.54%	-26.05%	+9.51%
Max Drawdown (5Y) Largest decline over 5 years	-35.43%	-36.23%	+0.80%
Max Drawdown (10Y) Largest decline over 10 years	-37.02%	-86.75%	+49.73%
Current Drawdown Current decline from peak	-1.04%	-85.01%	+83.97%
Average Drawdown Average peak-to-trough decline	-12.01%	-75.30%	+63.29%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.48%	10.82%	-7.34%

Volatility

GEM vs. USO - Volatility Comparison

The current volatility for Goldman Sachs ActiveBeta Emerging Markets Equity ETF (GEM) is 8.60%, while United States Oil Fund LP (USO) has a volatility of 14.87%. This indicates that GEM 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

	GEM	USO	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.60%	14.87%	-6.27%
Volatility (6M) Calculated over the trailing 6-month period	16.96%	38.23%	-21.27%
Volatility (1Y) Calculated over the trailing 1-year period	19.51%	44.20%	-24.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.70%	36.06%	-18.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.03%	39.00%	-19.97%

GEM vs. USO - Expense Ratio Comparison

GEM has a 0.45% expense ratio, which is lower than USO's 0.86% expense ratio.

Dividends

GEM vs. USO - Dividend Comparison

GEM's dividend yield for the trailing twelve months is around 1.80%, while USO has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
GEM Goldman Sachs ActiveBeta Emerging Markets Equity ETF	1.80%	2.30%	2.58%	2.97%	2.96%	3.00%	1.63%	3.13%	2.08%	1.81%	1.98%	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%	0.00%	0.00%

Frequently Asked Questions

Can I hold both GEM and USO in my portfolio?

GEM and USO have a correlation of -0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, GEM or USO?

USO has higher volatility (14.87%) compared to GEM (8.60%). In terms of maximum drawdown, GEM dropped -37.02% vs USO's -98.19%.

Which ETF is better, GEM or USO?

On 10-year performance, GEM leads with 10.00% vs 4.07% for USO. On fees, GEM is cheaper at 0.45% per year. On volatility, GEM has been the lower-risk option at 8.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, GEM or USO?

Over the 10-year period, GEM has performed better with a 10.00% return vs 4.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, GEM or USO?

GEM is cheaper with a 0.45% expense ratio, compared with 0.86% for USO.

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

GEM has the higher dividend yield at 1.80%, compared with 0.00% for USO.

What is the main difference between GEM and USO?

GEM is categorized as Emerging Markets Equities, while USO is Oil & Gas. GEM tracks Goldman Sachs ActiveBeta Emerging Markets Equity Index, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: Goldman Sachs and USCF. Their fees differ too: 0.45% for GEM and 0.86% for USO.

Which has better risk-adjusted returns?

GEM currently has the higher Sharpe Ratio (2.82 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.