PHO vs. USO
PHO (Invesco Water Resources ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - PHO is a Water Equities fund tracking the NASDAQ OMX US Water 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, PHO returned 11.55%/yr vs 4.07%/yr for USO. At a 0.26 correlation, their price movements are largely independent. PHO charges 0.60%/yr vs 0.86%/yr for USO.
Performance
PHO vs. USO - Performance Comparison
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Returns By Period
In the year-to-date period, PHO achieves a -5.40% return, which is significantly lower than USO's 103.67% return. Over the past 10 years, PHO has outperformed USO with an annualized return of 11.55%, while USO has yielded a comparatively lower 4.07% annualized return.
PHO
- 1D
- 0.30%
- 1M
- -1.41%
- YTD
- -5.40%
- 6M
- -7.93%
- 1Y
- -3.67%
- 3Y*
- 7.71%
- 5Y*
- 5.22%
- 10Y*
- 11.55%
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%
PHO vs. USO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
PHO Invesco Water Resources ETF | -5.40% | 7.62% | 8.59% | 18.85% | -14.86% | 31.28% | 20.83% | 37.57% | -6.40% | 23.55% |
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 PHO and USO is -0.30, 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 | -0.30 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.07 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.04 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.13 |
Correlation (All Time) Calculated using the full available price history since Apr 11, 2006 | 0.26 |
The correlation between PHO and USO shifts across timeframes, from -0.30 (1 year) to 0.26 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
PHO vs. USO — Risk / Return Rank
PHO
USO
PHO vs. USO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco Water Resources ETF (PHO) 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.
| PHO | USO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -2.56 | ||
| Sortino ratioReturn per unit of downside risk | -3.14 | ||
| Omega ratioGain probability vs. loss probability | 0.97 | 1.38 | -0.41 |
| Calmar ratioReturn relative to maximum drawdown | -0.27 | 5.01 | -5.27 |
| Martin ratioReturn relative to average drawdown | -0.69 | 9.42 | -10.11 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| PHO | USO | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.25 | 2.31 | -2.56 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.29 | 0.68 | -0.39 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.60 | 0.10 | +0.49 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.34 | -0.18 | +0.52 |
Drawdowns
PHO vs. USO - Drawdown Comparison
The maximum PHO drawdown since its inception was -55.62%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for PHO and USO.
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Drawdown Indicators
| PHO | USO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -55.62% | -98.19% | +42.57% |
Max Drawdown (1Y)Largest decline over 1 year | -13.78% | -20.39% | +6.61% |
Max Drawdown (3Y)Largest decline over 3 years | -19.19% | -26.05% | +6.86% |
Max Drawdown (5Y)Largest decline over 5 years | -28.60% | -36.23% | +7.63% |
Max Drawdown (10Y)Largest decline over 10 years | -34.92% | -86.75% | +51.83% |
Current DrawdownCurrent decline from peak | -10.62% | -85.01% | +74.39% |
Average DrawdownAverage peak-to-trough decline | -10.18% | -75.30% | +65.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.31% | 10.82% | -5.51% |
Volatility
PHO vs. USO - Volatility Comparison
The current volatility for Invesco Water Resources ETF (PHO) is 4.01%, while United States Oil Fund LP (USO) has a volatility of 14.87%. This indicates that PHO 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
| PHO | USO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.01% | 14.87% | -10.86% |
Volatility (6M)Calculated over the trailing 6-month period | 10.92% | 38.23% | -27.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.03% | 44.20% | -29.17% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.35% | 36.06% | -17.71% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 19.45% | 39.00% | -19.55% |
PHO vs. USO - Expense Ratio Comparison
PHO has a 0.60% expense ratio, which is lower than USO's 0.86% expense ratio.
Dividends
PHO vs. USO - Dividend Comparison
PHO's dividend yield for the trailing twelve months is around 0.58%, while USO has not paid dividends to shareholders.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
PHO Invesco Water Resources ETF | 0.58% | 0.54% | 0.45% | 0.59% | 0.49% | 0.20% | 0.39% | 0.43% | 0.46% | 0.34% | 0.47% | 0.75% |
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
PHO and USO have a correlation of -0.30, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USO has higher volatility (14.87%) compared to PHO (4.01%). In terms of maximum drawdown, PHO dropped -55.62% vs USO's -98.19%.
On 10-year performance, PHO leads with 11.55% vs 4.07% for USO. On fees, PHO is cheaper at 0.60% per year. On volatility, PHO has been the lower-risk option at 4.01%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, PHO has performed better with a 11.55% return vs 4.07%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
PHO is cheaper with a 0.60% expense ratio, compared with 0.86% for USO.
PHO has the higher dividend yield at 0.58%, compared with 0.00% for USO.
PHO is categorized as Water Equities, while USO is Oil & Gas. PHO tracks NASDAQ OMX US Water Index, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: Invesco and USCF. Their fees differ too: 0.60% for PHO and 0.86% for USO.
USO currently has the higher Sharpe Ratio (2.31 vs -0.25), 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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