UNG vs. USO
UNG (United States Natural Gas Fund LP) and USO (United States Oil Fund LP) are both Oil & Gas funds - UNG tracks the Front Month Natural Gas Futures while USO tracks the Front Month Light Sweet Crude Oil. Both are passively managed. Over the past 10 years, UNG returned -21.37%/yr vs 2.01%/yr for USO. At a 0.16 correlation, their price movements are largely independent. UNG charges 1.17%/yr vs 0.86%/yr for USO.
Performance
UNG vs. USO - Performance Comparison
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Returns By Period
In the year-to-date period, UNG achieves a -6.20% return, which is significantly lower than USO's 60.87% return. Over the past 10 years, UNG has underperformed USO with an annualized return of -21.37%, while USO has yielded a comparatively higher 2.01% annualized return.
UNG
- 1D
- -2.29%
- 1M
- 5.12%
- YTD
- -6.20%
- 6M
- -10.85%
- 1Y
- -31.71%
- 3Y*
- -27.52%
- 5Y*
- -24.87%
- 10Y*
- -21.37%
USO
- 1D
- -1.27%
- 1M
- -21.05%
- YTD
- 60.87%
- 6M
- 58.26%
- 1Y
- 45.61%
- 3Y*
- 21.25%
- 5Y*
- 17.42%
- 10Y*
- 2.01%
UNG vs. USO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
UNG United States Natural Gas Fund LP | -6.20% | -27.07% | -17.11% | -64.04% | 12.89% | 35.76% | -45.43% | -31.77% | 5.96% | -37.58% |
USO United States Oil Fund LP | 60.87% | -8.46% | 13.35% | -4.94% | 28.97% | 64.68% | -67.79% | 32.61% | -19.57% | 2.47% |
Correlation
The correlation between UNG and USO is 0.22, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.22 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.11 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.13 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.12 |
Correlation (All Time) Calculated using the full available price history since Apr 18, 2007 | 0.16 |
The correlation between UNG and USO shifts across timeframes, from 0.11 (3 years) to 0.22 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
UNG vs. USO — Risk / Return Rank
UNG
USO
UNG vs. USO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for United States Natural Gas Fund LP (UNG) 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.
| UNG | USO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -1.58 | ||
| Sortino ratioReturn per unit of downside risk | -2.13 | ||
| Omega ratioGain probability vs. loss probability | 0.94 | 1.21 | -0.27 |
| Calmar ratioReturn relative to maximum drawdown | -0.80 | 1.68 | -2.48 |
| Martin ratioReturn relative to average drawdown | -1.25 | 4.57 | -5.82 |
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Drawdowns
UNG vs. USO - Drawdown Comparison
The maximum UNG drawdown since its inception was -99.88%, roughly equal to the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for UNG and USO.
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Drawdown Indicators
| UNG | USO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -99.88% | -98.19% | -1.69% |
Max Drawdown (1Y)Largest decline over 1 year | -39.94% | -27.26% | -12.68% |
Max Drawdown (3Y)Largest decline over 3 years | -68.16% | -27.26% | -40.90% |
Max Drawdown (5Y)Largest decline over 5 years | -92.49% | -36.23% | -56.26% |
Max Drawdown (10Y)Largest decline over 10 years | -93.55% | -86.75% | -6.80% |
Current DrawdownCurrent decline from peak | -99.86% | -88.16% | -11.70% |
Average DrawdownAverage peak-to-trough decline | -89.97% | -75.31% | -14.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 26.12% | 10.02% | +16.10% |
Volatility
UNG vs. USO - Volatility Comparison
United States Natural Gas Fund LP (UNG) and United States Oil Fund LP (USO) have volatilities of 12.10% and 11.79%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| UNG | USO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.10% | 11.79% | +0.31% |
Volatility (6M)Calculated over the trailing 6-month period | 50.87% | 39.34% | +11.53% |
Volatility (1Y)Calculated over the trailing 1-year period | 60.39% | 44.35% | +16.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 64.14% | 36.32% | +27.82% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 54.80% | 39.02% | +15.78% |
UNG vs. USO - Expense Ratio Comparison
UNG has a 1.17% expense ratio, which is higher than USO's 0.86% expense ratio.
Dividends
UNG vs. USO - Dividend Comparison
Neither UNG nor USO has paid dividends to shareholders.
Frequently Asked Questions
UNG and USO have a correlation of 0.22, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
UNG has higher volatility (12.10%) compared to USO (11.79%). In terms of maximum drawdown, UNG dropped -99.88% vs USO's -98.19%.
On 10-year performance, USO leads with 2.01% vs -21.37% for UNG. On fees, USO is cheaper at 0.86% per year. On volatility, USO has been the lower-risk option at 11.79%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, USO has performed better with a 2.01% return vs -21.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
USO is cheaper with a 0.86% expense ratio, compared with 1.17% for UNG.
UNG and USO have nearly identical dividend yields, around 0.00%.
UNG tracks Front Month Natural Gas Futures, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: USCF Investments and USCF. Their fees differ too: 1.17% for UNG and 0.86% for USO.
USO currently has the higher Sharpe Ratio (1.05 vs -0.53), 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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