USO vs. XLE
Compare and contrast key facts about United States Oil Fund LP (USO) and Energy Select Sector SPDR Fund (XLE).
USO and XLE 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. XLE is a passively managed fund by State Street that tracks the performance of the Energy Select Sector Index. It was launched on Dec 16, 1998. Both USO and XLE 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 XLE.
Key characteristics
| USO | XLE | |
|---|---|---|
| YTD Return | 12.84% | 12.66% |
| 1Y Return | 19.40% | 22.83% |
| 3Y Return (Ann) | 18.98% | 25.58% |
| 5Y Return (Ann) | -6.49% | 13.20% |
| 10Y Return (Ann) | -12.88% | 3.96% |
| Sharpe Ratio | 0.79 | 1.27 |
| Daily Std Dev | 26.90% | 18.43% |
| Max Drawdown | -98.19% | -71.54% |
| Current Drawdown | -92.00% | -4.47% |
Correlation
The correlation between USO and XLE is 0.63, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
USO vs. XLE - Performance Comparison
The year-to-date returns for both stocks are quite close, with USO having a 12.84% return and XLE slightly lower at 12.66%. Over the past 10 years, USO has underperformed XLE with an annualized return of -12.88%, while XLE has yielded a comparatively higher 3.96% 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. XLE - Expense Ratio Comparison
USO has a 0.79% expense ratio, which is higher than XLE's 0.13% expense ratio.
Risk-Adjusted Performance
USO vs. XLE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for United States Oil Fund LP (USO) and Energy Select Sector SPDR Fund (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.
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 3.11%.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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 Energy Select Sector SPDR Fund | 3.11% | 3.55% | 3.68% | 4.21% | 5.62% | 5.73% | 3.54% | 3.03% | 2.26% | 3.39% | 2.35% | 1.73% |
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 -71.54%. Use the drawdown chart below to compare losses from any high point for USO and XLE. For additional features, visit the drawdowns tool.
Volatility
USO vs. XLE - Volatility Comparison
United States Oil Fund LP (USO) has a higher volatility of 5.68% compared to Energy Select Sector SPDR Fund (XLE) at 4.51%. 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.