KBAB vs. USO

Last updated Jun 4, 2026

KBAB (KraneShares 2x Long BABA Daily ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - KBAB is a Leveraged Equities fund actively managed by KraneShares, while USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil. KBAB is actively managed, while USO is passively managed. Over the past year, KBAB returned -3.50% vs 101.55% for USO. At a correlation of -0.06, they often move in opposite directions. KBAB charges 1.00%/yr vs 0.86%/yr for USO.

Performance

KBAB vs. USO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares 2x Long BABA Daily ETF (KBAB) 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, KBAB achieves a -33.01% return, which is significantly lower than USO's 103.67% return.

KBAB

• 1D: -4.79%
• 1M: -11.26%
• YTD: -33.01%
• 6M: -43.16%
• 1Y: -3.50%
• 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%

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

KBAB vs. USO - Yearly Performance Comparison

	2026 (YTD)	2025
KBAB KraneShares 2x Long BABA Daily ETF	-33.01%	-7.77%
USO United States Oil Fund LP	103.67%	-5.00%

Correlation

The correlation between KBAB and USO is -0.14, 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	-0.14
Correlation (All Time) Calculated using the full available price history since Mar 13, 2025	-0.06

Return for Risk

KBAB vs. USO — Risk / Return Rank

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

KBAB

KBAB Risk / Return Rank: 11
KBAB Sharpe Ratio Rank: 9
KBAB Sortino Ratio Rank: 14
KBAB Omega Ratio Rank: 13
KBAB Calmar Ratio Rank: 8
KBAB Martin Ratio Rank: 8

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.

KBAB vs. USO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares 2x Long BABA Daily ETF (KBAB) 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.

	KBAB	USO	Difference
Sharpe ratio: Return per unit of total volatility	-0.04	2.31	-2.35
Sortino ratio: Return per unit of downside risk	0.64	2.89	-2.26
Omega ratio: Gain probability vs. loss probability	1.07	1.38	-0.32
Calmar ratio: Return relative to maximum drawdown	-0.05	5.01	-5.06
Martin ratio: Return relative to average drawdown	-0.10	9.42	-9.51
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KBAB vs. USO - Sharpe Ratio Comparison

The current KBAB Sharpe Ratio is -0.04, which is lower than the USO Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of KBAB 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

	KBAB	USO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.04	2.31	-2.35
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	-0.36	-0.18	-0.18

Drawdowns

KBAB vs. USO - Drawdown Comparison

The maximum KBAB drawdown since its inception was -65.23%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for KBAB and USO.

Drawdown Indicators

	KBAB	USO	Difference
Max Drawdown Largest peak-to-trough decline	-65.23%	-98.19%	+32.96%
Max Drawdown (1Y) Largest decline over 1 year	-65.23%	-20.39%	-44.84%
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 Drawdown Current decline from peak	-62.27%	-85.01%	+22.74%
Average Drawdown Average peak-to-trough decline	-37.38%	-75.30%	+37.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	36.47%	10.82%	+25.65%

Volatility

KBAB vs. USO - Volatility Comparison

KraneShares 2x Long BABA Daily ETF (KBAB) has a higher volatility of 28.62% compared to United States Oil Fund LP (USO) at 14.87%. This indicates that KBAB'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

	KBAB	USO	Difference
Volatility (1M) Calculated over the trailing 1-month period	28.62%	14.87%	+13.75%
Volatility (6M) Calculated over the trailing 6-month period	57.54%	38.23%	+19.31%
Volatility (1Y) Calculated over the trailing 1-year period	87.64%	44.20%	+43.44%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	91.00%	36.06%	+54.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	91.00%	39.00%	+52.00%

KBAB vs. USO - Expense Ratio Comparison

KBAB has a 1.00% expense ratio, which is higher than USO's 0.86% expense ratio.

Dividends

KBAB vs. USO - Dividend Comparison

KBAB's dividend yield for the trailing twelve months is around 89.39%, while USO has not paid dividends to shareholders.

Position	TTM	2025
KBAB KraneShares 2x Long BABA Daily ETF	89.39%	59.88%
USO United States Oil Fund LP	0.00%	0.00%

Frequently Asked Questions

Can I hold both KBAB and USO in my portfolio?

KBAB and USO have a correlation of -0.14, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KBAB or USO?

KBAB has higher volatility (28.62%) compared to USO (14.87%). In terms of maximum drawdown, KBAB dropped -65.23% vs USO's -98.19%.

Which ETF is better, KBAB or USO?

On 1-year performance, USO leads with 101.55% vs -3.50% for KBAB. 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, KBAB or USO?

Over the 1-year period, USO has performed better with a 101.55% return vs -3.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KBAB or USO?

USO is cheaper with a 0.86% expense ratio, compared with 1.00% for KBAB.

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

KBAB has the higher dividend yield at 89.39%, compared with 0.00% for USO.

What is the main difference between KBAB and USO?

KBAB is categorized as Leveraged Equities, while USO is Oil & Gas. They also come from different issuers: KraneShares and USCF. Their fees differ too: 1.00% for KBAB and 0.86% for USO.

Which has better risk-adjusted returns?

USO currently has the higher Sharpe Ratio (2.31 vs -0.04), 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.