SETM vs. USO

Last updated Jun 4, 2026

SETM (Sprott Energy Transition Materials ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - SETM is a Energy Equities fund tracking the Nasdaq Sprott Energy Transition Materials Select Index - AUD - Benchmark TR Gross, while USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil. Both are passively managed. Over the past 3 years, SETM returned 30.90%/yr vs 29.98%/yr for USO. At a 0.10 correlation, their price movements are largely independent. SETM charges 0.65%/yr vs 0.86%/yr for USO.

Performance

SETM vs. USO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Sprott Energy Transition Materials ETF (SETM) 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, SETM achieves a 27.22% return, which is significantly lower than USO's 103.67% return.

SETM

• 1D: -4.09%
• 1M: 2.39%
• YTD: 27.22%
• 6M: 33.66%
• 1Y: 144.21%
• 3Y*: 30.90%
• 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)

SETM vs. USO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
SETM Sprott Energy Transition Materials ETF	27.22%	95.27%	-13.24%	-11.03%
USO United States Oil Fund LP	103.67%	-8.46%	13.35%	0.12%

Correlation

The correlation between SETM and USO is -0.19, 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	-0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.06
Correlation (All Time) Calculated using the full available price history since Feb 3, 2023	0.10

The correlation between SETM and USO shifts across timeframes, from -0.19 (1 year) to 0.10 (all time), reflecting how their relationship changes across market environments.

Return for Risk

SETM vs. USO — Risk / Return Rank

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

SETM

SETM Risk / Return Rank: 82
SETM Sharpe Ratio Rank: 91
SETM Sortino Ratio Rank: 71
SETM Omega Ratio Rank: 72
SETM Calmar Ratio Rank: 90
SETM Martin Ratio Rank: 84

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.

SETM vs. USO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Sprott Energy Transition Materials ETF (SETM) 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.

	SETM	USO	Difference
Sharpe ratio Return per unit of total volatility	3.25	2.31	+0.94
Sortino ratio Return per unit of downside risk	3.29	2.89	+0.40
Omega ratio Gain probability vs. loss probability	1.44	1.38	+0.06
Calmar ratio Return relative to maximum drawdown	5.61	5.01	+0.61
Martin ratio Return relative to average drawdown	17.42	9.42	+8.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SETM vs. USO - Sharpe Ratio Comparison

The current SETM Sharpe Ratio is 3.25, which is higher than the USO Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of SETM 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

	SETM	USO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.25	2.31	+0.94
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	0.59	-0.18	+0.77

Drawdowns

SETM vs. USO - Drawdown Comparison

The maximum SETM drawdown since its inception was -42.81%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for SETM and USO.

Drawdown Indicators

	SETM	USO	Difference
Max Drawdown Largest peak-to-trough decline	-42.81%	-98.19%	+55.38%
Max Drawdown (1Y) Largest decline over 1 year	-25.85%	-20.39%	-5.46%
Max Drawdown (3Y) Largest decline over 3 years	-42.81%	-26.05%	-16.76%
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	-7.30%	-85.01%	+77.71%
Average Drawdown Average peak-to-trough decline	-14.26%	-75.30%	+61.04%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.31%	10.82%	-2.51%

Volatility

SETM vs. USO - Volatility Comparison

The current volatility for Sprott Energy Transition Materials ETF (SETM) is 13.58%, while United States Oil Fund LP (USO) has a volatility of 14.87%. This indicates that SETM 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

	SETM	USO	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.58%	14.87%	-1.29%
Volatility (6M) Calculated over the trailing 6-month period	34.49%	38.23%	-3.74%
Volatility (1Y) Calculated over the trailing 1-year period	44.71%	44.20%	+0.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.57%	36.06%	+0.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	36.57%	39.00%	-2.43%

SETM vs. USO - Expense Ratio Comparison

SETM has a 0.65% expense ratio, which is lower than USO's 0.86% expense ratio.

Dividends

SETM vs. USO - Dividend Comparison

SETM's dividend yield for the trailing twelve months is around 1.23%, while USO has not paid dividends to shareholders.

Position	TTM	2025	2024	2023
SETM Sprott Energy Transition Materials ETF	1.23%	1.56%	2.07%	2.47%
USO United States Oil Fund LP	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SETM and USO in my portfolio?

SETM and USO have a correlation of -0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SETM or USO?

USO has higher volatility (14.87%) compared to SETM (13.58%). In terms of maximum drawdown, SETM dropped -42.81% vs USO's -98.19%.

Which ETF is better, SETM or USO?

On 3-year performance, SETM leads with 30.90% vs 29.98% for USO. On fees, SETM is cheaper at 0.65% per year. On volatility, SETM has been the lower-risk option at 13.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, SETM or USO?

Over the 3-year period, SETM has performed better with a 30.90% return vs 29.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, SETM or USO?

SETM is cheaper with a 0.65% expense ratio, compared with 0.86% for USO.

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

SETM has the higher dividend yield at 1.23%, compared with 0.00% for USO.

What is the main difference between SETM and USO?

SETM is categorized as Energy Equities, while USO is Oil & Gas. SETM tracks Nasdaq Sprott Energy Transition Materials Select Index - AUD - Benchmark TR Gross, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: Sprott and USCF. Their fees differ too: 0.65% for SETM and 0.86% for USO.

Which has better risk-adjusted returns?

SETM currently has the higher Sharpe Ratio (3.25 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.