USO vs. EMB
USO (United States Oil Fund LP) and EMB (iShares J.P. Morgan USD Emerging Markets Bond ETF) are both exchange-traded funds - USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil, while EMB is a Emerging Markets Bonds fund tracking the J.P. Morgan EMBI Global Core Index. Both are passively managed. Over the past 10 years, USO returned 1.54%/yr vs 3.33%/yr for EMB. At a 0.14 correlation, their price movements are largely independent. USO charges 0.86%/yr vs 0.39%/yr for EMB.
Performance
USO vs. EMB - Performance Comparison
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Returns By Period
In the year-to-date period, USO achieves a 53.69% return, which is significantly higher than EMB's 2.51% return. Over the past 10 years, USO has underperformed EMB with an annualized return of 1.54%, while EMB has yielded a comparatively higher 3.33% annualized return.
USO
- 1D
- -4.47%
- 1M
- -24.57%
- YTD
- 53.69%
- 6M
- 51.41%
- 1Y
- 45.60%
- 3Y*
- 19.41%
- 5Y*
- 16.16%
- 10Y*
- 1.54%
EMB
- 1D
- 0.32%
- 1M
- 1.90%
- YTD
- 2.51%
- 6M
- 2.23%
- 1Y
- 10.51%
- 3Y*
- 9.48%
- 5Y*
- 1.98%
- 10Y*
- 3.33%
USO vs. EMB - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
USO United States Oil Fund LP | 53.69% | -8.46% | 13.35% | -4.94% | 28.97% | 64.68% | -67.79% | 32.61% | -19.57% | 2.47% |
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 2.51% | 13.85% | 5.54% | 10.62% | -18.63% | -2.23% | 5.42% | 15.48% | -5.47% | 10.28% |
Correlation
The correlation between USO and EMB is -0.41, 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 | -0.41 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.15 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.05 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.07 |
Correlation (All Time) Calculated using the full available price history since Dec 19, 2007 | 0.14 |
The correlation between USO and EMB shifts across timeframes, from -0.41 (1 year) to 0.14 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
USO vs. EMB — Risk / Return Rank
USO
EMB
USO vs. EMB - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for United States Oil Fund LP (USO) and iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB). 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.
| USO | EMB | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.81 | ||
| Sortino ratioReturn per unit of downside risk | -1.06 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.36 | -0.15 |
| Calmar ratioReturn relative to maximum drawdown | 1.50 | 2.34 | -0.84 |
| Martin ratioReturn relative to average drawdown | 4.49 | 9.97 | -5.48 |
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Drawdowns
USO vs. EMB - Drawdown Comparison
The maximum USO drawdown since its inception was -98.19%, which is greater than EMB's maximum drawdown of -34.70%. Use the drawdown chart below to compare losses from any high point for USO and EMB.
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Drawdown Indicators
| USO | EMB | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -98.19% | -34.70% | -63.49% |
Max Drawdown (1Y)Largest decline over 1 year | -30.51% | -4.51% | -26.00% |
Max Drawdown (3Y)Largest decline over 3 years | -30.51% | -7.95% | -22.56% |
Max Drawdown (5Y)Largest decline over 5 years | -36.23% | -28.74% | -7.49% |
Max Drawdown (10Y)Largest decline over 10 years | -86.75% | -28.74% | -58.01% |
Current DrawdownCurrent decline from peak | -88.69% | -0.17% | -88.52% |
Average DrawdownAverage peak-to-trough decline | -75.32% | -5.04% | -70.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 10.18% | 1.06% | +9.12% |
Volatility
USO vs. EMB - Volatility Comparison
United States Oil Fund LP (USO) has a higher volatility of 12.26% compared to iShares J.P. Morgan USD Emerging Markets Bond ETF (EMB) at 1.80%. This indicates that USO's price experiences larger fluctuations and is considered to be riskier than EMB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| USO | EMB | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.26% | 1.80% | +10.46% |
Volatility (6M)Calculated over the trailing 6-month period | 39.65% | 4.69% | +34.96% |
Volatility (1Y)Calculated over the trailing 1-year period | 43.82% | 5.69% | +38.13% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 36.38% | 9.76% | +26.62% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 39.04% | 9.96% | +29.08% |
USO vs. EMB - Expense Ratio Comparison
USO has a 0.86% expense ratio, which is higher than EMB's 0.39% expense ratio.
Dividends
USO vs. EMB - Dividend Comparison
USO has not paid dividends to shareholders, while EMB's dividend yield for the trailing twelve months is around 5.02%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
EMB iShares J.P. Morgan USD Emerging Markets Bond ETF | 5.02% | 4.98% | 5.46% | 4.74% | 5.04% | 3.89% | 3.88% | 4.51% | 5.64% | 4.54% | 4.83% | 4.84% |
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
USO and EMB have a correlation of -0.41, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USO has higher volatility (12.26%) compared to EMB (1.80%). In terms of maximum drawdown, USO dropped -98.19% vs EMB's -34.70%.
On 10-year performance, EMB leads with 3.33% vs 1.54% for USO. On fees, EMB is cheaper at 0.39% per year. On volatility, EMB has been the lower-risk option at 1.80%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, EMB has performed better with a 3.33% return vs 1.54%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
EMB is cheaper with a 0.39% expense ratio, compared with 0.86% for USO.
EMB has the higher dividend yield at 5.02%, compared with 0.00% for USO.
USO is categorized as Oil & Gas, while EMB is Emerging Markets Bonds. USO tracks Front Month Light Sweet Crude Oil, while EMB tracks J.P. Morgan EMBI Global Core Index. They also come from different issuers: USCF and iShares. Their fees differ too: 0.86% for USO and 0.39% for EMB.
EMB currently has the higher Sharpe Ratio (1.87 vs 1.05), 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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