PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
XOP vs. USO
Performance
Return for Risk
Drawdowns
Volatility
Dividends

XOP vs. USO

Last updated Jun 4, 2026

XOP (SPDR S&P Oil & Gas Exploration & Production ETF) and USO (United States Oil Fund LP) are both exchange-traded funds - XOP is a Energy Equities fund tracking the S&P Oil & Gas Exploration & Production Select Industry, while USO is a Oil & Gas fund tracking the Front Month Light Sweet Crude Oil. Both are passively managed. Over the past 10 years, XOP returned 3.80%/yr vs 4.07%/yr for USO. A 0.64 correlation means they provide meaningful diversification when combined. XOP charges 0.35%/yr vs 0.86%/yr for USO.

Performance

XOP vs. USO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and United States Oil Fund LP (USO). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

In the year-to-date period, XOP achieves a 36.08% return, which is significantly lower than USO's 103.67% return. Over the past 10 years, XOP has underperformed USO with an annualized return of 3.80%, while USO has yielded a comparatively higher 4.07% annualized return.

XOP

1D
1.35%
1M
-5.46%
YTD
36.08%
6M
26.81%
1Y
41.73%
3Y*
14.10%
5Y*
14.86%
10Y*
3.80%

USO

1D
2.62%
1M
-4.57%
YTD
103.67%
6M
99.35%
1Y
101.55%
3Y*
29.98%
5Y*
24.41%
10Y*
4.07%
*Multi-year figures are annualized to reflect compound growth (CAGR)

XOP vs. USO - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
XOP
SPDR S&P Oil & Gas Exploration & Production ETF		36.08%-2.15%-1.00%3.56%45.37%66.74%-36.40%-9.44%-28.10%-9.47%
USO
United States Oil Fund LP		103.67%-8.46%13.35%-4.94%28.97%64.68%-67.79%32.61%-19.57%2.47%

Correlation

The correlation between XOP and USO is 0.67, 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

0.67

Correlation (3Y)
Calculated over the trailing 3-year period

0.63

Correlation (5Y)
Calculated over the trailing 5-year period

0.65

Correlation (10Y)
Calculated over the trailing 10-year period

0.63

Correlation (All Time)
Calculated using the full available price history since Jun 23, 2006

0.64

The correlation between XOP and USO has been stable across timeframes, ranging from 0.63 to 0.67 - a consistent structural relationship.

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

SPDR S&P Oil & Gas Exploration & Production ETF

United States Oil Fund LP

Often compared with XOP:
XOP vs. XLEXOP vs. OIHXOP vs. VDEXOP vs. SPYXOP vs. GUSHXOP vs. DRIPXOP vs. IYE
Often compared with USO:
USO vs. XLEUSO vs. BNOUSO vs. UCOUSO vs. USLUSO vs. OILKUSO vs. DBOUSO vs. WTI

Return for Risk

XOP vs. USO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
XOP
XOP Risk / Return Rank: 4343
Overall Rank
XOP Sharpe Ratio Rank: 4242
Sharpe Ratio Rank
XOP Sortino Ratio Rank: 3838
Sortino Ratio Rank
XOP Omega Ratio Rank: 3737
Omega Ratio Rank
XOP Calmar Ratio Rank: 5555
Calmar Ratio Rank
XOP Martin Ratio Rank: 4343
Martin Ratio Rank
USO
USO Risk / Return Rank: 6666
Overall Rank
USO Sharpe Ratio Rank: 6969
Sharpe Ratio Rank
USO Sortino Ratio Rank: 6060
Sortino Ratio Rank
USO Omega Ratio Rank: 6161
Omega Ratio Rank
USO Calmar Ratio Rank: 8787
Calmar Ratio Rank
USO Martin Ratio Rank: 5454
Martin Ratio Rank
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.

XOP vs. USO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Oil & Gas Exploration & Production ETF (XOP) 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.

XOPUSODifference
Sharpe ratioReturn per unit of total volatility
1.51
2.31

-0.80

Sortino ratioReturn per unit of downside risk
2.00
2.89

-0.89

Omega ratioGain probability vs. loss probability

1.25

1.38

-0.13

Calmar ratioReturn relative to maximum drawdown

2.77

5.01

-2.24

Martin ratioReturn relative to average drawdown

7.10

9.42

-2.32

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XOP vs. USO - Sharpe Ratio Comparison

The current XOP Sharpe Ratio is 1.51, which is lower than the USO Sharpe Ratio of 2.31. The chart below compares the historical Sharpe Ratios of XOP and USO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Sharpe Ratios by Period

XOPUSODifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

1.51

2.31

-0.80

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.44

0.68

-0.24

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.09

0.10

-0.01

Sharpe Ratio (All Time)

Calculated using the full available price history

0.06

-0.18

+0.24

Drawdowns

XOP vs. USO - Drawdown Comparison

The maximum XOP drawdown since its inception was -90.27%, smaller than the maximum USO drawdown of -98.19%. Use the drawdown chart below to compare losses from any high point for XOP and USO.

Loading charts...

Drawdown Indicators

XOPUSODifference

Max Drawdown

Largest peak-to-trough decline

-90.27%

-98.19%

+7.92%

Max Drawdown (1Y)

Largest decline over 1 year

-15.14%

-20.39%

+5.25%

Max Drawdown (3Y)

Largest decline over 3 years

-34.98%

-26.05%

-8.93%

Max Drawdown (5Y)

Largest decline over 5 years

-34.98%

-36.23%

+1.25%

Max Drawdown (10Y)

Largest decline over 10 years

-82.61%

-86.75%

+4.14%

Current Drawdown

Current decline from peak

-36.40%

-85.01%

+48.61%

Average Drawdown

Average peak-to-trough decline

-42.59%

-75.30%

+32.71%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.90%

10.82%

-4.92%

Volatility

XOP vs. USO - Volatility Comparison

The current volatility for SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is 10.03%, while United States Oil Fund LP (USO) has a volatility of 14.87%. This indicates that XOP 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.

Loading charts...

Volatility by Period

XOPUSODifference

Volatility (1M)

Calculated over the trailing 1-month period

10.03%

14.87%

-4.84%

Volatility (6M)

Calculated over the trailing 6-month period

21.64%

38.23%

-16.59%

Volatility (1Y)

Calculated over the trailing 1-year period

27.81%

44.20%

-16.39%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

33.88%

36.06%

-2.18%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

40.28%

39.00%

+1.28%

XOP vs. USO - Expense Ratio Comparison

XOP has a 0.35% expense ratio, which is lower than USO's 0.86% expense ratio.

Dividends

XOP vs. USO - Dividend Comparison

XOP's dividend yield for the trailing twelve months is around 1.90%, while USO has not paid dividends to shareholders.

PositionTTM20252024202320222021202020192018201720162015
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%
XOP
SPDR S&P Oil & Gas Exploration & Production ETF		1.90%2.62%2.45%2.63%2.47%1.61%2.34%1.47%0.99%0.76%0.76%2.21%

Frequently Asked Questions

XOP and USO have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

USO has higher volatility (14.87%) compared to XOP (10.03%). In terms of maximum drawdown, XOP dropped -90.27% vs USO's -98.19%.

On 10-year performance, USO leads with 4.07% vs 3.80% for XOP. On fees, XOP is cheaper at 0.35% per year. On volatility, XOP has been the lower-risk option at 10.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, USO has performed better with a 4.07% return vs 3.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

XOP is cheaper with a 0.35% expense ratio, compared with 0.86% for USO.

XOP has the higher dividend yield at 1.90%, compared with 0.00% for USO.

XOP is categorized as Energy Equities, while USO is Oil & Gas. XOP tracks S&P Oil & Gas Exploration & Production Select Industry, while USO tracks Front Month Light Sweet Crude Oil. They also come from different issuers: State Street and USCF. Their fees differ too: 0.35% for XOP and 0.86% for USO.

USO currently has the higher Sharpe Ratio (2.31 vs 1.51), 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.

Portfolio Optimizer

Find the right allocation for XOP and USO

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer