MS vs. USO

Last updated Jun 4, 2026

MS (Morgan Stanley) is a stock, while USO (United States Oil Fund LP) is Oil & Gas fund tracking the Front Month Light Sweet Crude Oil. Over the past 10 years, MS returned 26.51%/yr vs 4.07%/yr for USO. At a 0.21 correlation, their price movements are largely independent.

Performance

MS vs. USO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Morgan Stanley (MS) 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, MS achieves a 19.66% return, which is significantly lower than USO's 103.67% return. Over the past 10 years, MS has outperformed USO with an annualized return of 26.51%, while USO has yielded a comparatively lower 4.07% annualized return.

MS

• 1D: -2.25%
• 1M: 11.77%
• YTD: 19.66%
• 6M: 22.29%
• 1Y: 67.25%
• 3Y*: 39.95%
• 5Y*: 21.31%
• 10Y*: 26.51%

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)

MS vs. USO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MS Morgan Stanley	19.66%	45.16%	39.73%	13.93%	-10.34%	46.65%	38.09%	32.67%	-22.76%	26.61%
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 MS and USO is -0.18, 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	-0.18
Correlation (3Y) Calculated over the trailing 3-year period	-0.03
Correlation (5Y) Calculated over the trailing 5-year period	0.11
Correlation (10Y) Calculated over the trailing 10-year period	0.19
Correlation (All Time) Calculated using the full available price history since Apr 11, 2006	0.21

The correlation between MS and USO shifts across timeframes, from -0.18 (1 year) to 0.21 (all time), reflecting how their relationship changes across market environments.

Return for Risk

MS vs. USO — Risk / Return Rank

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

MS

MS Risk / Return Rank: 89
MS Sharpe Ratio Rank: 93
MS Sortino Ratio Rank: 90
MS Omega Ratio Rank: 90
MS Calmar Ratio Rank: 85
MS Martin Ratio Rank: 89

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.

MS vs. USO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley (MS) 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.

	MS	USO	Difference
Sharpe ratio: Return per unit of total volatility	2.68	2.31	+0.37
Sortino ratio: Return per unit of downside risk	3.29	2.89	+0.39
Omega ratio: Gain probability vs. loss probability	1.45	1.38	+0.06
Calmar ratio: Return relative to maximum drawdown	3.59	5.01	-1.42
Martin ratio: Return relative to average drawdown	11.89	9.42	+2.47
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MS vs. USO - Sharpe Ratio Comparison

The current MS Sharpe Ratio is 2.68, which is comparable to the USO Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of MS 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

	MS	USO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.68	2.31	+0.37
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.68	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.85	0.10	+0.74
Sharpe Ratio (All Time) Calculated using the full available price history	0.29	-0.18	+0.47

Drawdowns

MS vs. USO - Drawdown Comparison

The maximum MS drawdown since its inception was -88.12%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for MS and USO.

Drawdown Indicators

	MS	USO	Difference
Max Drawdown Largest peak-to-trough decline	-88.12%	-98.19%	+10.07%
Max Drawdown (1Y) Largest decline over 1 year	-18.83%	-20.39%	+1.56%
Max Drawdown (3Y) Largest decline over 3 years	-29.24%	-26.05%	-3.19%
Max Drawdown (5Y) Largest decline over 5 years	-32.38%	-36.23%	+3.85%
Max Drawdown (10Y) Largest decline over 10 years	-51.33%	-86.75%	+35.42%
Current Drawdown Current decline from peak	-2.25%	-85.01%	+82.76%
Average Drawdown Average peak-to-trough decline	-33.72%	-75.30%	+41.58%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.67%	10.82%	-5.15%

Volatility

MS vs. USO - Volatility Comparison

The current volatility for Morgan Stanley (MS) is 6.98%, while United States Oil Fund LP (USO) has a volatility of 14.87%. This indicates that MS 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

	MS	USO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.98%	14.87%	-7.89%
Volatility (6M) Calculated over the trailing 6-month period	20.82%	38.23%	-17.41%
Volatility (1Y) Calculated over the trailing 1-year period	25.19%	44.20%	-19.01%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.65%	36.06%	-7.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.48%	39.00%	-7.52%

Dividends

MS vs. USO - Dividend Comparison

MS's dividend yield for the trailing twelve months is around 1.90%, while USO has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MS Morgan Stanley	1.90%	2.17%	2.82%	3.49%	3.47%	2.14%	2.04%	2.54%	2.77%	1.72%	1.66%	1.73%
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 MS and USO in my portfolio?

MS and USO have a correlation of -0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MS or USO?

USO has higher volatility (14.87%) compared to MS (6.98%). In terms of maximum drawdown, MS dropped -88.12% vs USO's -98.19%.

Which has better risk-adjusted returns?

MS currently has the higher Sharpe Ratio (2.68 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.