VFH vs. USO
VFH (Vanguard Financials ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - VFH is a Financials Equities fund tracking the MSCI US Investable Market Financials 25/50 Index, while USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil. Both are passively managed. Over the past 10 years, VFH returned 13.43%/yr vs 5.64%/yr for USO. Their 0.22 correlation means their historical movements had little consistent relationship. VFH charges 0.09%/yr vs 0.86%/yr for USO.
Performance
VFH vs. USO - Performance Comparison
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Returns By Period
In the year-to-date period, VFH achieves a 5.30% return, which is significantly lower than USO's 86.77% return. Over the past 10 years, VFH has outperformed USO with an annualized return of 13.43%, while USO has yielded a comparatively lower 5.64% annualized return.
VFH
- 1D
- -0.14%
- 1M
- 2.24%
- 6M
- 7.40%
- YTD
- 5.30%
- 1Y
- 13.18%
- 3Y*
- 19.66%
- 5Y*
- 11.34%
- 10Y*
- 13.43%
- ALL TIME*
- 6.94%
USO
- 1D
- 1.33%
- 1M
- 24.23%
- 6M
- 62.44%
- YTD
- 86.77%
- 1Y
- 66.76%
- 3Y*
- 20.97%
- 5Y*
- 20.59%
- 10Y*
- 5.64%
- ALL TIME*
- -6.85%
Liquidity Comparison
| Position | Avg. Volume Value (2W) | Avg. Volume Value (1M) | Avg. Volume Value (3M) |
|---|---|---|---|
| $968.42M | $871.56M | $931.57M | |
| $53.46M | $73.54M | $73.23M |
VFH vs. USO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VFH Vanguard Financials ETF | 5.30% | 14.91% | 30.44% | 14.17% | -12.31% | 35.22% | -1.96% | 31.57% | -13.52% | 19.99% |
USO United States Oil Fund LP | 86.77% | -8.46% | 13.35% | -4.94% | 28.97% | 64.68% | -67.79% | 32.61% | -19.57% | 2.47% |
Correlation
The correlation between VFH and USO is -0.26, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.
| Correlation | |
|---|---|
Correlation (1Y) Focuses on recent behavior, but can change the most. | -0.26 |
Correlation (3Y) Balances recent behavior with more history. | -0.09 |
Correlation (5Y) Shows whether the relationship held over a longer period. | 0.08 |
Correlation (10Y) Provides a long-term view across more market conditions. | 0.16 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2006 | 0.22 |
The correlation between VFH and USO shifts across timeframes, from -0.26 (1 year) to 0.22 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
VFH vs. USO — Risk / Return Rank
VFH
USO
VFH vs. USO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and United States Oil Fund LP (USO). 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.
| VFH | USO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.61 | ||
| Sortino ratioReturn per unit of downside risk | -0.91 | ||
| Omega ratioGain probability vs. loss probability | 1.14 | 1.25 | -0.11 |
| Calmar ratioReturn relative to maximum drawdown | 0.74 | 1.93 | -1.18 |
| Martin ratioReturn relative to average drawdown | 1.93 | 5.60 | -3.67 |
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Drawdowns
VFH vs. USO - Drawdown Comparison
The maximum VFH drawdown since its inception was -78.61%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for VFH and USO.
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Drawdown Indicators
| VFH | USO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -78.61% | -98.19% | +19.58% |
Max Drawdown (1Y)Largest decline over 1 year | -14.75% | -32.49% | +17.74% |
Max Drawdown (3Y)Largest decline over 3 years | -17.30% | -32.49% | +15.19% |
Max Drawdown (5Y)Largest decline over 5 years | -25.66% | -36.23% | +10.57% |
Max Drawdown (10Y)Largest decline over 10 years | -44.42% | -86.75% | +42.33% |
Current DrawdownCurrent decline from peak | -1.21% | -86.26% | +85.05% |
Average DrawdownAverage peak-to-trough decline | -18.42% | -75.38% | +56.96% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 5.67% | 12.03% | -6.36% |
Volatility
VFH vs. USO - Volatility Comparison
The current volatility for Vanguard Financials ETF (VFH) is 4.07%, while United States Oil Fund LP (USO) has a volatility of 17.73%. This indicates that VFH experiences smaller price fluctuations and is considered to be less risky than USO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VFH | USO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 4.07% | 17.73% | -13.66% |
Volatility (6M)Calculated over the trailing 6-month period | 11.21% | 42.79% | -31.58% |
Volatility (1Y)Calculated over the trailing 1-year period | 15.06% | 46.91% | -31.85% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.12% | 37.06% | -17.94% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 22.48% | 39.29% | -16.81% |
VFH vs. USO - Expense Ratio Comparison
VFH has a 0.09% expense ratio, which is lower than USO's 0.86% expense ratio.
Dividends
VFH vs. USO - Dividend Comparison
VFH's dividend yield for the trailing twelve months is around 1.67%, while USO has not paid dividends to shareholders.
| 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% |
VFH Vanguard Financials ETF | 1.67% | 1.55% | 1.75% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% |
Frequently Asked Questions
VFH and USO have a correlation of -0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USO has higher volatility (17.73%) compared to VFH (4.07%). In terms of maximum drawdown, VFH dropped -78.61% vs USO's -98.19%.
On 10-year performance, VFH leads with 13.43% vs 5.64% for USO. On fees, VFH is cheaper at 0.09% per year. On volatility, VFH has been the lower-risk option at 4.07%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VFH has performed better with a 13.43% return vs 5.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VFH is cheaper with a 0.09% expense ratio, compared with 0.86% for USO.
VFH has the higher dividend yield at 1.67%, compared with 0.00% for USO.
VFH is categorized as Financials Equities, while USO is Oil & Gas. VFH tracks MSCI US Investable Market Financials 25/50 Index, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: Vanguard and USCF. Their fees differ too: 0.09% for VFH and 0.86% for USO.
USO currently has the higher Sharpe Ratio (1.34 vs 0.73), 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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