XLE vs. USO
XLE (State Street Energy Select Sector SPDR ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector 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, XLE returned 9.49%/yr vs 2.65%/yr for USO. A 0.63 correlation means they provide meaningful diversification when combined. XLE charges 0.08%/yr vs 0.86%/yr for USO.
Performance
XLE vs. USO - Performance Comparison
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Returns By Period
In the year-to-date period, XLE achieves a 25.06% return, which is significantly lower than USO's 75.26% return. Over the past 10 years, XLE has outperformed USO with an annualized return of 9.49%, while USO has yielded a comparatively lower 2.65% annualized return.
XLE
- 1D
- -3.48%
- 1M
- -6.54%
- YTD
- 25.06%
- 6M
- 24.78%
- 1Y
- 30.16%
- 3Y*
- 14.85%
- 5Y*
- 19.05%
- 10Y*
- 9.49%
USO
- 1D
- -3.36%
- 1M
- -18.23%
- YTD
- 75.26%
- 6M
- 78.54%
- 1Y
- 51.10%
- 3Y*
- 23.50%
- 5Y*
- 19.98%
- 10Y*
- 2.65%
XLE vs. USO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLE State Street Energy Select Sector SPDR ETF | 25.06% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
USO United States Oil Fund LP | 75.26% | -8.46% | 13.35% | -4.94% | 28.97% | 64.68% | -67.79% | 32.61% | -19.57% | 2.47% |
Correlation
The correlation between XLE and USO is 0.64, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.64 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.61 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.65 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.62 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2006 | 0.63 |
The correlation between XLE and USO has been stable across timeframes, ranging from 0.61 to 0.65 - a consistent structural relationship.
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Return for Risk
XLE vs. USO — Risk / Return Rank
XLE
USO
XLE vs. USO - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) 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.
| XLE | USO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.30 | ||
| Sortino ratioReturn per unit of downside risk | +0.19 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.23 | +0.02 |
| Calmar ratioReturn relative to maximum drawdown | 2.51 | 2.47 | +0.04 |
| Martin ratioReturn relative to average drawdown | 6.91 | 4.60 | +2.31 |
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Drawdowns
XLE vs. USO - Drawdown Comparison
The maximum XLE drawdown since its inception was -71.26%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for XLE and USO.
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Drawdown Indicators
| XLE | USO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -71.26% | -98.19% | +26.93% |
Max Drawdown (1Y)Largest decline over 1 year | -12.05% | -20.76% | +8.71% |
Max Drawdown (3Y)Largest decline over 3 years | -20.14% | -26.05% | +5.91% |
Max Drawdown (5Y)Largest decline over 5 years | -26.04% | -36.23% | +10.19% |
Max Drawdown (10Y)Largest decline over 10 years | -66.81% | -86.75% | +19.94% |
Current DrawdownCurrent decline from peak | -11.21% | -87.10% | +75.89% |
Average DrawdownAverage peak-to-trough decline | -17.97% | -75.30% | +57.33% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.38% | 11.14% | -6.76% |
Volatility
XLE vs. USO - Volatility Comparison
The current volatility for State Street Energy Select Sector SPDR ETF (XLE) is 8.02%, while United States Oil Fund LP (USO) has a volatility of 13.49%. This indicates that XLE 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
| XLE | USO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 8.02% | 13.49% | -5.47% |
Volatility (6M)Calculated over the trailing 6-month period | 17.19% | 39.12% | -21.93% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.86% | 44.37% | -23.51% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.10% | 36.24% | -10.14% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.61% | 39.05% | -9.44% |
XLE vs. USO - Expense Ratio Comparison
XLE has a 0.08% expense ratio, which is lower than USO's 0.86% expense ratio.
Dividends
XLE vs. USO - Dividend Comparison
XLE's dividend yield for the trailing twelve months is around 2.69%, 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% |
XLE State Street Energy Select Sector SPDR ETF | 2.69% | 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
XLE and USO have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
USO has higher volatility (13.49%) compared to XLE (8.02%). In terms of maximum drawdown, XLE dropped -71.26% vs USO's -98.19%.
On 10-year performance, XLE leads with 9.49% vs 2.65% for USO. On fees, XLE is cheaper at 0.08% per year. On volatility, XLE has been the lower-risk option at 8.02%. 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 9.49% return vs 2.65%. 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 2.69%, compared with 0.00% for USO.
XLE is categorized as Energy Equities, while USO is Oil & Gas. XLE tracks Energy Select Sector Index, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: State Street and USCF. Their fees differ too: 0.08% for XLE and 0.86% for USO.
XLE currently has the higher Sharpe Ratio (1.46 vs 1.16), 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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