SPY vs USO
State Street SPDR S&P 500 ETF Trust vs United States Oil Fund
Quick Verdict
SPY has a lower expense ratio. USO delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | SPY | USO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.86% | |
| AUM | $789.1B | $2.2B | |
| Dividend Yield | 1.01% | 0.00% | |
| Holdings | 505 | 7 | |
| YTD Return | +14.47% | +81.31% | |
| 1Y Return | +21.96% | +72.55% | |
| 3Y Return (annualized) | +21.70% | +19.22% | |
| 5Y Return (annualized) | +13.30% | +21.40% | |
| Volatility (annualized) | 15.3% | 37.8% | |
| Max Drawdown | -56.5% | -98.2% | |
| Fund Family | State Street Investment Management | USCF Investments | |
| Category | Equity | Commodity | |
| Inception | Jan 22, 1993 | Apr 10, 2006 |
SPY vs USO Performance
State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management and United States Oil Fund (USO) is a ETF from USCF Investments. Over the past year SPY returned +21.96% while USO returned +72.55%. Year to date, SPY is up 14.47% versus a gain of 81.31% for USO.
Over three years, SPY compounded at +21.70% per year against +19.22% for USO; over five years the annualized figures are +13.30% and +21.40% respectively. Across the full 20-year window we track, SPY has the edge at +8.87% annualized vs -6.97%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
USO has been the more volatile fund, with annualized monthly volatility of 37.8% compared with 15.3% for SPY. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -56.5% for SPY and -98.2% for USO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
SPY charges 0.09% per year while USO charges 0.86%. On a $10,000 position that is $9 vs $86 annually, a gap of $77 per year that compounds over a long holding period. On income, SPY currently yields 1.01% against 0.00% for USO.
Holdings Overlap
SPY and USO share 0 holdings out of 505 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, SPY or USO?
SPY has an expense ratio of 0.09% while USO charges 0.86%. SPY is the cheaper option. On a $10,000 investment, that is $77 per year of difference.
Which performed better, SPY or USO?
Over the past year SPY returned +21.96% vs +72.55% for USO, so USO leads on 1-year performance. Over the longest common window we track (20 years), SPY annualized +8.87% vs -6.97% for USO. Past performance does not guarantee future results.
Which is riskier, SPY or USO?
USO has been the more volatile fund at 37.8% annualized versus 15.3% for SPY. Worst drawdown: SPY -56.5% vs USO -98.2%.
Should I hold both SPY and USO?
SPY and USO have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between SPY and USO?
SPY and USO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 505 unique securities.
Which pays a higher dividend, SPY or USO?
SPY yields 1.01% while USO yields 0.00%, so SPY currently pays the higher dividend yield.
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