USO vs. XLE
USO (United States Oil Fund LP) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, USO returned 3.91%/yr vs 10.03%/yr for XLE. Their 0.63 correlation means they have sometimes moved together and sometimes differently. USO charges 0.86%/yr vs 0.08%/yr for XLE.
Performance
USO vs. XLE - Performance Comparison
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Returns By Period
In the year-to-date period, USO achieves a 67.41% return, which is significantly higher than XLE's 32.69% return. Over the past 10 years, USO has underperformed XLE with an annualized return of 3.91%, while XLE has yielded a comparatively higher 10.03% annualized return.
USO
- 1D
- -5.19%
- 1M
- 11.35%
- 6M
- 49.45%
- YTD
- 67.41%
- 1Y
- 52.12%
- 3Y*
- 16.20%
- 5Y*
- 19.21%
- 10Y*
- 3.91%
- ALL TIME*
- -7.35%
XLE
- 1D
- -0.46%
- 1M
- 9.96%
- 6M
- 14.82%
- YTD
- 32.69%
- 1Y
- 41.32%
- 3Y*
- 14.02%
- 5Y*
- 23.40%
- 10Y*
- 10.03%
- ALL TIME*
- 8.80%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $990.59M | $905.37M | $892.65M | |
| $1.80B | $1.75B | $1.95B |
USO vs. XLE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
USO United States Oil Fund LP | 67.41% | -8.46% | 13.35% | -4.94% | 28.97% | 64.68% | -67.79% | 32.61% | -19.57% | 2.47% |
XLE State Street Energy Select Sector SPDR ETF | 32.69% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
Correlation
The correlation between USO and XLE is 0.65, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | 0.65 |
Correlation (3Y) Balances recent behavior with more history. | 0.61 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.65 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.62 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2006 | 0.63 |
The correlation between USO and XLE has been stable across timeframes, ranging from 0.61 to 0.65 - a consistent structural relationship.
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Return for Risk
USO vs. XLE — Risk / Return Rank
USO
XLE
USO vs. XLE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for United States Oil Fund LP (USO) and State Street Energy Select Sector SPDR ETF (XLE). 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 | XLE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.87 | ||
| Sortino ratioReturn per unit of downside risk | -0.83 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.32 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 1.61 | 2.77 | -1.16 |
| Martin ratioReturn relative to average drawdown | 4.70 | 7.38 | -2.68 |
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Drawdowns
USO vs. XLE - Drawdown Comparison
The maximum USO drawdown since its inception was -98.19%, which is greater than XLE's maximum drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for USO and XLE.
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Drawdown Indicators
| USO | XLE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -98.19% | -71.26% | -26.93% |
Max Drawdown (1Y)Largest decline over 1 year | -32.49% | -14.98% | -17.51% |
Max Drawdown (3Y)Largest decline over 3 years | -32.49% | -20.14% | -12.35% |
Max Drawdown (5Y)Largest decline over 5 years | -36.23% | -26.04% | -10.19% |
Max Drawdown (10Y)Largest decline over 10 years | -86.75% | -66.81% | -19.94% |
Current DrawdownCurrent decline from peak | -87.68% | -5.78% | -81.90% |
Average DrawdownAverage peak-to-trough decline | -75.38% | -17.93% | -57.45% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 11.15% | 5.62% | +5.53% |
Volatility
USO vs. XLE - Volatility Comparison
United States Oil Fund LP (USO) has a higher volatility of 19.90% compared to State Street Energy Select Sector SPDR ETF (XLE) at 6.17%. This indicates that USO's price experiences larger fluctuations and is considered to be riskier than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| USO | XLE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 19.90% | 6.17% | +13.73% |
Volatility (6M)Calculated over the trailing 6-month period | 43.20% | 16.62% | +26.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 47.43% | 21.00% | +26.43% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 37.17% | 25.74% | +11.43% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 39.35% | 29.57% | +9.78% |
USO vs. XLE - Expense Ratio Comparison
USO has a 0.86% expense ratio, which is higher than XLE's 0.08% expense ratio.
Dividends
USO vs. XLE - Dividend Comparison
USO has not paid dividends to shareholders, while XLE's dividend yield for the trailing twelve months is around 2.59%.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
XLE State Street Energy Select Sector SPDR ETF | 2.59% | 3.28% | 3.36% | 3.55% | 3.68% | 4.21% | 5.62% | 6.72% | 3.54% | 3.03% | 2.26% | 3.39% |
Frequently Asked Questions
USO and XLE have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USO has higher volatility (19.90%) compared to XLE (6.17%). In terms of maximum drawdown, USO dropped -98.19% vs XLE's -71.26%.
On 10-year performance, XLE leads with 10.03% vs 3.91% for USO. On fees, XLE is cheaper at 0.08% per year. On volatility, XLE has been the lower-risk option at 6.17%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLE has performed better with a 10.03% return vs 3.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLE is cheaper with a 0.08% expense ratio, compared with 0.86% for USO.
XLE has the higher dividend yield at 2.59%, compared with 0.00% for USO.
USO is categorized as Oil & Gas, while XLE is Energy Equities. USO tracks Front Month Light Sweet Crude Oil, while XLE tracks Energy Select Sector Index. They also come from different issuers: USCF and State Street. Their fees differ too: 0.86% for USO and 0.08% for XLE.
XLE currently has the higher Sharpe Ratio (1.98 vs 1.11), 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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