USO vs. UNG

Last updated Jun 13, 2026

USO (United States Oil Fund LP) and UNG (United States Natural Gas Fund LP) are both Oil & Gas funds - USO tracks the Front Month Light Sweet Crude Oil while UNG tracks the Front Month Natural Gas. Both are passively managed. Over the past 10 years, USO returned 2.94%/yr vs -21.38%/yr for UNG. At a 0.16 correlation, their price movements are largely independent. USO charges 0.86%/yr vs 1.28%/yr for UNG.

Performance

USO vs. UNG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in United States Oil Fund LP (USO) 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, USO achieves a 81.36% return, which is significantly higher than UNG's -7.42% return. Over the past 10 years, USO has outperformed UNG with an annualized return of 2.94%, while UNG has yielded a comparatively lower -21.38% annualized return.

USO

• 1D: -2.64%
• 1M: -11.69%
• YTD: 81.36%
• 6M: 82.28%
• 1Y: 67.13%
• 3Y*: 26.38%
• 5Y*: 21.14%
• 10Y*: 2.94%

UNG

• 1D: 1.70%
• 1M: 3.37%
• YTD: -7.42%
• 6M: -10.84%
• 1Y: -29.37%
• 3Y*: -23.83%
• 5Y*: -24.47%
• 10Y*: -21.38%

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

USO vs. UNG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
USO United States Oil Fund LP	81.36%	-8.46%	13.35%	-4.94%	28.97%	64.68%	-67.79%	32.61%	-19.57%	2.47%
UNG United States Natural Gas Fund LP	-7.42%	-27.07%	-17.11%	-64.04%	12.89%	35.76%	-45.43%	-31.77%	5.96%	-37.58%

Correlation

The correlation between USO and UNG is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.23
Correlation (3Y) Calculated over the trailing 3-year period	0.12
Correlation (5Y) Calculated over the trailing 5-year period	0.13
Correlation (10Y) Calculated over the trailing 10-year period	0.13
Correlation (All Time) Calculated using the full available price history since Apr 18, 2007	0.16

The correlation between USO and UNG shifts across timeframes, from 0.12 (3 years) to 0.23 (1 year), reflecting how their relationship changes across market environments.

Return for Risk

USO vs. UNG — Risk / Return Rank

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

USO

USO Risk / Return Rank: 53
USO Sharpe Ratio Rank: 50
USO Sortino Ratio Rank: 49
USO Omega Ratio Rank: 50
USO Calmar Ratio Rank: 74
USO Martin Ratio Rank: 43

UNG

UNG Risk / Return Rank: 5
UNG Sharpe Ratio Rank: 5
UNG Sortino Ratio Rank: 6
UNG Omega Ratio Rank: 6
UNG Calmar Ratio Rank: 4
UNG Martin Ratio Rank: 5

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.

USO vs. UNG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for United States Oil Fund LP (USO) 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.

	USO	UNG	Difference
Sharpe ratio: Return per unit of total volatility	1.51	-0.49	+2.00
Sortino ratio: Return per unit of downside risk	2.15	-0.36	+2.52
Omega ratio: Gain probability vs. loss probability	1.28	0.95	+0.32
Calmar ratio: Return relative to maximum drawdown	3.31	-0.67	+3.98
Martin ratio: Return relative to average drawdown	6.09	-0.97	+7.06

USO vs. UNG - Sharpe Ratio Comparison

The current USO Sharpe Ratio is 1.51, which is higher than the UNG Sharpe Ratio of -0.49. The chart below compares the historical Sharpe Ratios of USO 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

USO vs. UNG - Drawdown Comparison

The maximum USO drawdown since its inception was -98.19%, roughly equal to the maximum UNG drawdown of -99.88%. Use the drawdown chart below to compare losses from any high point for USO and UNG.

Drawdown Indicators

	USO	UNG	Difference
Max Drawdown Largest peak-to-trough decline	-98.19%	-99.88%	+1.69%
Max Drawdown (1Y) Largest decline over 1 year	-20.39%	-43.86%	+23.47%
Max Drawdown (3Y) Largest decline over 3 years	-26.05%	-68.16%	+42.11%
Max Drawdown (5Y) Largest decline over 5 years	-36.23%	-92.49%	+56.26%
Max Drawdown (10Y) Largest decline over 10 years	-86.75%	-93.55%	+6.80%
Current Drawdown Current decline from peak	-86.65%	-99.86%	+13.21%
Average Drawdown Average peak-to-trough decline	-75.30%	-89.96%	+14.66%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.06%	30.28%	-19.22%

Volatility

USO vs. UNG - Volatility Comparison

United States Oil Fund LP (USO) and United States Natural Gas Fund LP (UNG) have volatilities of 13.27% and 12.64%, 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.

Volatility by Period

	USO	UNG	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.27%	12.64%	+0.63%
Volatility (6M) Calculated over the trailing 6-month period	38.99%	52.01%	-13.02%
Volatility (1Y) Calculated over the trailing 1-year period	44.64%	60.61%	-15.97%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	36.20%	64.11%	-27.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	39.03%	54.77%	-15.74%

USO vs. UNG - Expense Ratio Comparison

USO has a 0.86% expense ratio, which is lower than UNG's 1.28% expense ratio.

Dividends

USO vs. UNG - Dividend Comparison

Neither USO nor UNG has paid dividends to shareholders.

Tickers have no history of dividend payments

Frequently Asked Questions

Can I hold both USO and UNG in my portfolio?

USO and UNG have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USO or UNG?

USO has higher volatility (13.27%) compared to UNG (12.64%). In terms of maximum drawdown, USO dropped -98.19% vs UNG's -99.88%.

Which ETF is better, USO or UNG?

On 10-year performance, USO leads with 2.94% vs -21.38% for UNG. On fees, USO is cheaper at 0.86% per year. On volatility, UNG has been the lower-risk option at 12.64%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USO or UNG?

Over the 10-year period, USO has performed better with a 2.94% return vs -21.38%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USO or UNG?

USO is cheaper with a 0.86% expense ratio, compared with 1.28% for UNG.

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

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

What is the main difference between USO and UNG?

USO tracks Front Month Light Sweet Crude Oil, while UNG tracks Front Month Natural Gas. They also come from different issuers: USCF and Concierge Technologies. Their fees differ too: 0.86% for USO and 1.28% for UNG.

Which has better risk-adjusted returns?

USO currently has the higher Sharpe Ratio (1.51 vs -0.49), 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.