IHE vs. USO
IHE (iShares U.S. Pharmaceuticals ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - IHE is a Health & Biotech Equities fund tracking the Dow Jones U.S. Select Pharmaceuticals 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, IHE returned 8.59%/yr vs 5.64%/yr for USO. Their 0.15 correlation means their historical movements had little consistent relationship. IHE charges 0.38%/yr vs 0.86%/yr for USO.
Performance
IHE vs. USO - Performance Comparison
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Returns By Period
In the year-to-date period, IHE achieves a 20.55% return, which is significantly lower than USO's 86.77% return. Over the past 10 years, IHE has outperformed USO with an annualized return of 8.59%, while USO has yielded a comparatively lower 5.64% annualized return.
IHE
- 1D
- -0.82%
- 1M
- 0.65%
- 6M
- 17.97%
- YTD
- 20.55%
- 1Y
- 54.85%
- 3Y*
- 20.96%
- 5Y*
- 11.63%
- 10Y*
- 8.59%
- ALL TIME*
- 10.94%
USO
- 1D
- 1.33%
- 1M
- 24.23%
- 6M
- 62.44%
- YTD
- 86.77%
- 1Y
- 66.76%
- 3Y*
- 20.97%
- 5Y*
- 20.59%
- 10Y*
- 5.64%
- ALL TIME*
- -6.85%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $36.03M | $39.50M | $21.12M | |
| $968.42M | $871.56M | $931.57M |
IHE vs. USO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
IHE iShares U.S. Pharmaceuticals ETF | 20.55% | 31.69% | 8.13% | 1.06% | -4.87% | 13.07% | 13.66% | 15.47% | -7.76% | 10.64% |
USO United States Oil Fund LP | 86.77% | -8.46% | 13.35% | -4.94% | 28.97% | 64.68% | -67.79% | 32.61% | -19.57% | 2.47% |
Correlation
The correlation between IHE and USO is -0.26, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.26 |
Correlation (3Y) Balances recent behavior with more history. | -0.14 |
Correlation (5Y) Shows whether the relationship held over a longer period. | -0.05 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.07 |
Correlation (All Time) Calculated using the full available price history since May 5, 2006 | 0.15 |
The correlation between IHE and USO shifts across timeframes, from -0.26 (1 year) to 0.15 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
IHE vs. USO — Risk / Return Rank
IHE
USO
IHE vs. USO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Pharmaceuticals ETF (IHE) 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.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| IHE | USO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.90 | ||
| Sortino ratioReturn per unit of downside risk | +2.67 | ||
| Omega ratioGain probability vs. loss probability | 1.54 | 1.25 | +0.29 |
| Calmar ratioReturn relative to maximum drawdown | 6.80 | 1.93 | +4.87 |
| Martin ratioReturn relative to average drawdown | 20.95 | 5.60 | +15.36 |
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Drawdowns
IHE vs. USO - Drawdown Comparison
The maximum IHE drawdown since its inception was -38.20%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for IHE and USO.
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Drawdown Indicators
| IHE | USO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.20% | -98.19% | +59.99% |
Max Drawdown (1Y)Largest decline over 1 year | -8.47% | -32.49% | +24.02% |
Max Drawdown (3Y)Largest decline over 3 years | -15.92% | -32.49% | +16.57% |
Max Drawdown (5Y)Largest decline over 5 years | -16.03% | -36.23% | +20.20% |
Max Drawdown (10Y)Largest decline over 10 years | -29.59% | -86.75% | +57.16% |
Current DrawdownCurrent decline from peak | -2.25% | -86.26% | +84.01% |
Average DrawdownAverage peak-to-trough decline | -7.86% | -75.38% | +67.52% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 2.74% | 12.03% | -9.29% |
Volatility
IHE vs. USO - Volatility Comparison
The current volatility for iShares U.S. Pharmaceuticals ETF (IHE) is 6.33%, while United States Oil Fund LP (USO) has a volatility of 17.73%. This indicates that IHE 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
| IHE | USO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.33% | 17.73% | -11.40% |
Volatility (6M)Calculated over the trailing 6-month period | 13.96% | 42.79% | -28.83% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.99% | 46.91% | -28.92% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 16.53% | 37.06% | -20.53% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.07% | 39.29% | -21.22% |
IHE vs. USO - Expense Ratio Comparison
IHE has a 0.38% expense ratio, which is lower than USO's 0.86% expense ratio.
Dividends
IHE vs. USO - Dividend Comparison
IHE's dividend yield for the trailing twelve months is around 1.44%, while USO has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IHE iShares U.S. Pharmaceuticals ETF | 1.44% | 1.76% | 1.73% | 1.39% | 2.01% | 1.49% | 1.19% | 1.40% | 1.25% | 1.36% | 0.92% | 1.93% |
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
IHE and USO have a correlation of -0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USO has higher volatility (17.73%) compared to IHE (6.33%). In terms of maximum drawdown, IHE dropped -38.20% vs USO's -98.19%.
On 10-year performance, IHE leads with 8.59% vs 5.64% for USO. On fees, IHE is cheaper at 0.38% per year. On volatility, IHE has been the lower-risk option at 6.33%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, IHE has performed better with a 8.59% return vs 5.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
IHE is cheaper with a 0.38% expense ratio, compared with 0.86% for USO.
IHE has the higher dividend yield at 1.44%, compared with 0.00% for USO.
IHE is categorized as Health & Biotech Equities, while USO is Oil & Gas. IHE tracks Dow Jones U.S. Select Pharmaceuticals Index, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: iShares and USCF. Their fees differ too: 0.38% for IHE and 0.86% for USO.
IHE currently has the higher Sharpe Ratio (3.23 vs 1.34), 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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