USL vs. UNG

Last updated Jul 17, 2026

USL (United States 12 Month Oil Fund LP) and UNG (United States Natural Gas Fund LP) are both Oil & Gas funds - USL tracks the 12 Month Light Sweet Crude Oil while UNG tracks the Front Month Natural Gas Futures. Both are passively managed. Over the past 10 years, USL returned 10.39%/yr vs -22.23%/yr for UNG. At a 0.15 correlation, their price movements are largely independent. USL charges 0.88%/yr vs 1.17%/yr for UNG.

Performance

USL vs. UNG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in United States 12 Month Oil Fund LP (USL) and United States Natural Gas Fund LP (UNG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, USL achieves a 48.13% return, which is significantly higher than UNG's -15.01% return. Over the past 10 years, USL has outperformed UNG with an annualized return of 10.39%, while UNG has yielded a comparatively lower -22.23% annualized return.

USL

• 1D: -0.83%
• 1M: 2.63%
• 6M: 44.56%
• YTD: 48.13%
• 1Y: 36.77%
• 3Y*: 13.15%
• 5Y*: 14.30%
• 10Y*: 10.39%

UNG

• 1D: -1.23%
• 1M: -11.39%
• 6M: 1.17%
• YTD: -15.01%
• 1Y: -34.05%
• 3Y*: -27.27%
• 5Y*: -27.30%
• 10Y*: -22.23%

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

USL vs. UNG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
USL United States 12 Month Oil Fund LP	48.13%	-12.37%	8.30%	-1.11%	27.10%	62.48%	-25.23%	28.01%	-14.15%	2.55%
UNG United States Natural Gas Fund LP	-15.01%	-27.07%	-17.11%	-64.04%	12.89%	35.76%	-45.43%	-31.77%	5.96%	-37.58%

Correlation

The correlation between USL and UNG 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	0.12
Correlation (5Y) Calculated over the trailing 5-year period	0.14
Correlation (10Y) Calculated over the trailing 10-year period	0.12
Correlation (All Time) Calculated using the full available price history since Dec 6, 2007	0.15

Return for Risk

USL vs. UNG — Risk / Return Rank

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

USL

USL Risk / Return Rank: 40
USL Sharpe Ratio Rank: 43
USL Sortino Ratio Rank: 42
USL Omega Ratio Rank: 41
USL Calmar Ratio Rank: 42
USL Martin Ratio Rank: 34

UNG

UNG Risk / Return Rank: 4
UNG Sharpe Ratio Rank: 5
UNG Sortino Ratio Rank: 5
UNG Omega Ratio Rank: 5
UNG Calmar Ratio Rank: 2
UNG Martin Ratio Rank: 2

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.

USL vs. UNG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for United States 12 Month Oil Fund LP (USL) and United States Natural Gas Fund LP (UNG). 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.

	USL	UNG	Difference
Sharpe ratio: Return per unit of total volatility	1.27	-0.57	+1.84
Sortino ratio: Return per unit of downside risk	1.80	-0.54	+2.34
Omega ratio: Gain probability vs. loss probability	1.22	0.93	+0.29
Calmar ratio: Return relative to maximum drawdown	1.77	-0.86	+2.62
Martin ratio: Return relative to average drawdown	4.16	-1.32	+5.48

USL vs. UNG - Sharpe Ratio Comparison

The current USL Sharpe Ratio is 1.27, which is higher than the UNG Sharpe Ratio of -0.57. The chart below compares the historical Sharpe Ratios of USL and UNG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

USL vs. UNG - Drawdown Comparison

The maximum USL drawdown since its inception was -89.06%, smaller than the maximum UNG drawdown of -99.88%. Use the drawdown chart below to compare losses from any high point for USL and UNG.

Drawdown Indicators

	USL	UNG	Difference
Max Drawdown Largest peak-to-trough decline	-89.06%	-99.88%	+10.82%
Max Drawdown (1Y) Largest decline over 1 year	-20.91%	-39.94%	+19.03%
Max Drawdown (3Y) Largest decline over 3 years	-23.33%	-68.16%	+44.83%
Max Drawdown (5Y) Largest decline over 5 years	-33.82%	-92.49%	+58.67%
Max Drawdown (10Y) Largest decline over 10 years	-66.02%	-93.55%	+27.53%
Current Drawdown Current decline from peak	-43.82%	-99.87%	+56.05%
Average Drawdown Average peak-to-trough decline	-61.34%	-90.00%	+28.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.87%	25.76%	-16.89%

Volatility

USL vs. UNG - Volatility Comparison

The current volatility for United States 12 Month Oil Fund LP (USL) is 9.63%, while United States Natural Gas Fund LP (UNG) has a volatility of 10.58%. This indicates that USL experiences smaller price fluctuations and is considered to be less risky than UNG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	USL	UNG	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.63%	10.58%	-0.95%
Volatility (6M) Calculated over the trailing 6-month period	24.97%	48.34%	-23.37%
Volatility (1Y) Calculated over the trailing 1-year period	29.20%	59.59%	-30.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.39%	64.19%	-33.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.30%	54.74%	-22.44%

USL vs. UNG - Expense Ratio Comparison

USL has a 0.88% expense ratio, which is lower than UNG's 1.17% expense ratio.

Dividends

USL vs. UNG - Dividend Comparison

Neither USL nor UNG has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both USL and UNG in my portfolio?

USL and UNG 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.

Which is riskier, USL or UNG?

UNG has higher volatility (10.58%) compared to USL (9.63%). In terms of maximum drawdown, USL dropped -89.06% vs UNG's -99.88%.

Which ETF is better, USL or UNG?

On 10-year performance, USL leads with 10.39% vs -22.23% for UNG. On fees, USL is cheaper at 0.88% per year. On volatility, USL has been the lower-risk option at 9.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USL or UNG?

Over the 10-year period, USL has performed better with a 10.39% return vs -22.23%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USL or UNG?

USL is cheaper with a 0.88% expense ratio, compared with 1.17% for UNG.

Which ETF pays a higher dividend yield, USL or UNG?

USL and UNG have nearly identical dividend yields, around 0.00%.

What is the main difference between USL and UNG?

USL tracks 12 Month Light Sweet Crude Oil, while UNG tracks Front Month Natural Gas Futures. They also come from different issuers: Concierge Technologies and USCF Investments. Their fees differ too: 0.88% for USL and 1.17% for UNG.

Which has better risk-adjusted returns?

USL currently has the higher Sharpe Ratio (1.27 vs -0.57), 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.