USO vs. BNO
Compare and contrast key facts about United States Oil Fund LP (USO) and United States Brent Oil Fund LP (BNO).
USO and BNO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. USO is a passively managed fund by Concierge Technologies that tracks the performance of the Front Month Light Sweet Crude Oil. It was launched on Apr 10, 2006. BNO is a passively managed fund by Concierge Technologies that tracks the performance of the Front Month Brent Crude Oil. It was launched on Jun 2, 2010. Both USO and BNO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: USO or BNO.
Key characteristics
| USO | BNO | |
|---|---|---|
| YTD Return | 12.84% | 12.38% |
| 1Y Return | 19.40% | 21.21% |
| 3Y Return (Ann) | 18.98% | 20.72% |
| 5Y Return (Ann) | -6.49% | 8.03% |
| 10Y Return (Ann) | -12.88% | -3.56% |
| Sharpe Ratio | 0.79 | 0.89 |
| Daily Std Dev | 26.90% | 25.89% |
| Max Drawdown | -98.19% | -87.06% |
| Current Drawdown | -92.00% | -33.93% |
Correlation
The correlation between USO and BNO is 0.91, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
USO vs. BNO - Performance Comparison
The year-to-date returns for both stocks are quite close, with USO having a 12.84% return and BNO slightly lower at 12.38%. Over the past 10 years, USO has underperformed BNO with an annualized return of -12.88%, while BNO has yielded a comparatively higher -3.56% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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USO vs. BNO - Expense Ratio Comparison
USO has a 0.79% expense ratio, which is lower than BNO's 0.90% expense ratio.
Risk-Adjusted Performance
USO vs. BNO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for United States Oil Fund LP (USO) and United States Brent Oil Fund LP (BNO). 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.
Dividends
USO vs. BNO - Dividend Comparison
Neither USO nor BNO has paid dividends to shareholders.
Drawdowns
USO vs. BNO - Drawdown Comparison
The maximum USO drawdown since its inception was -98.19%, which is greater than BNO's maximum drawdown of -87.06%. Use the drawdown chart below to compare losses from any high point for USO and BNO. For additional features, visit the drawdowns tool.
Volatility
USO vs. BNO - Volatility Comparison
United States Oil Fund LP (USO) has a higher volatility of 5.68% compared to United States Brent Oil Fund LP (BNO) at 5.36%. This indicates that USO's price experiences larger fluctuations and is considered to be riskier than BNO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.