UNG vs VOO
United States Natural Gas Fund LP vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | UNG | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.17% | 0.03% | |
| AUM | $461M | $979.0B | |
| Dividend Yield | 0.00% | 1.09% | |
| Holdings | 7 | 509 | |
| YTD Return | -15.42% | +13.72% | |
| 1Y Return | -16.94% | +21.63% | |
| 3Y Return (annualized) | -30.31% | +21.55% | |
| 5Y Return (annualized) | -28.57% | +13.26% | |
| Volatility (annualized) | 47.0% | 14.1% | |
| Max Drawdown | -99.9% | -34.3% | |
| Fund Family | USCF Investments | Vanguard (US) | |
| Category | Commodity | Equity | |
| Inception | Apr 18, 2007 | Sep 7, 2010 |
UNG vs VOO Performance
United States Natural Gas Fund LP (UNG) is a ETF from USCF Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year UNG returned -16.94% while VOO returned +21.63%. Year to date, UNG is down 15.42% versus a gain of 13.72% for VOO.
Over three years, UNG compounded at -30.31% per year against +21.55% for VOO; over five years the annualized figures are -28.57% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.56% annualized vs -28.41%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
UNG has been the more volatile fund, with annualized monthly volatility of 47.0% 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 -99.9% for UNG 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
UNG charges 1.17% per year while VOO charges 0.03%. On a $10,000 position that is $117 vs $3 annually, a gap of $114 per year that compounds over a long holding period. On income, UNG currently yields 0.00% against 1.09% for VOO.
Holdings Overlap
UNG and VOO share 0 holdings out of 507 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, UNG or VOO?
UNG has an expense ratio of 1.17% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $114 per year of difference.
Which performed better, UNG or VOO?
Over the past year UNG returned -16.94% vs +21.63% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), UNG annualized -28.41% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, UNG or VOO?
UNG has been the more volatile fund at 47.0% annualized versus 14.1% for VOO. Worst drawdown: UNG -99.9% vs VOO -34.3%.
Should I hold both UNG and VOO?
UNG and VOO have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between UNG and VOO?
UNG and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, UNG or VOO?
UNG yields 0.00% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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