UCO vs VOO

Quick Verdict

VOO has a lower expense ratio. UCO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.

Lower Fees: VOOHigher Returns: UCOMore Diversified: VOO

Side-by-Side Comparison

MetricUCOVOOWinner
Expense Ratio0.95%0.03%
AUM$416M$979.0B
Dividend Yield0.00%1.09%
Holdings9509
YTD Return+116.14%+13.72%
1Y Return+85.52%+21.63%
3Y Return (annualized)+10.30%+21.55%
5Y Return (annualized)+18.10%+13.26%
Volatility (annualized)65.1%14.1%
Max Drawdown-100.0%-34.3%
Fund FamilyProSharesVanguard (US)
CategoryAlternativeEquity
InceptionNov 24, 2008Sep 7, 2010

UCO vs VOO Performance

ProShares Ultra Bloomberg Crude Oil (UCO) is a ETF from ProShares and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year UCO returned +85.52% while VOO returned +21.63%. Year to date, UCO is up 116.14% versus a gain of 13.72% for VOO.

Over three years, UCO compounded at +10.30% per year against +21.55% for VOO; over five years the annualized figures are +18.10% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.56% annualized vs -24.04%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

UCO has been the more volatile fund, with annualized monthly volatility of 65.1% compared with 14.1% for VOO. 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 -100.0% for UCO and -34.3% for VOO. 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 0.34. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

UCO charges 0.95% per year while VOO charges 0.03%. On a $10,000 position that is $95 vs $3 annually, a gap of $92 per year that compounds over a long holding period. On income, UCO currently yields 0.00% against 1.09% for VOO.

Holdings Overlap

0.0%overlap

UCO and VOO share 0 holdings out of 506 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, UCO or VOO?

UCO has an expense ratio of 0.95% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $92 per year of difference.

Which performed better, UCO or VOO?

Over the past year UCO returned +85.52% vs +21.63% for VOO, so UCO leads on 1-year performance. Over the longest common window we track (16 years), UCO annualized -24.04% vs +13.56% for VOO. Past performance does not guarantee future results.

Which is riskier, UCO or VOO?

UCO has been the more volatile fund at 65.1% annualized versus 14.1% for VOO. Worst drawdown: UCO -100.0% vs VOO -34.3%.

Should I hold both UCO and VOO?

UCO and VOO have a monthly-return correlation of 0.34, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between UCO and VOO?

UCO and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 506 unique securities.

Which pays a higher dividend, UCO or VOO?

UCO yields 0.00% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.

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