USO vs VOO
United States Oil Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. USO delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | USO | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.86% | 0.03% | |
| AUM | $2.2B | $979.0B | |
| Dividend Yield | 0.00% | 1.09% | |
| Holdings | 7 | 509 | |
| YTD Return | +84.60% | +13.72% | |
| 1Y Return | +74.50% | +21.63% | |
| 3Y Return (annualized) | +19.96% | +21.55% | |
| 5Y Return (annualized) | +21.49% | +13.26% | |
| Volatility (annualized) | 37.8% | 14.1% | |
| Max Drawdown | -98.2% | -34.3% | |
| Fund Family | USCF Investments | Vanguard (US) | |
| Category | Commodity | Equity | |
| Inception | Apr 10, 2006 | Sep 7, 2010 |
USO vs VOO Performance
United States Oil Fund (USO) is a ETF from USCF Investments and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year USO returned +74.50% while VOO returned +21.63%. Year to date, USO is up 84.60% versus a gain of 13.72% for VOO.
Over three years, USO compounded at +19.96% per year against +21.55% for VOO; over five years the annualized figures are +21.49% and +13.26% respectively. Across the full 16-year window we track, VOO has the edge at +13.56% annualized vs -6.89%. 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 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 -98.2% for USO 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
USO charges 0.86% per year while VOO charges 0.03%. On a $10,000 position that is $86 vs $3 annually, a gap of $83 per year that compounds over a long holding period. On income, USO currently yields 0.00% against 1.09% for VOO.
Holdings Overlap
USO 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, USO or VOO?
USO has an expense ratio of 0.86% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $83 per year of difference.
Which performed better, USO or VOO?
Over the past year USO returned +74.50% vs +21.63% for VOO, so USO leads on 1-year performance. Over the longest common window we track (16 years), USO annualized -6.89% vs +13.56% for VOO. Past performance does not guarantee future results.
Which is riskier, USO or VOO?
USO has been the more volatile fund at 37.8% annualized versus 14.1% for VOO. Worst drawdown: USO -98.2% vs VOO -34.3%.
Should I hold both USO and VOO?
USO and VOO have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USO and VOO?
USO and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 507 unique securities.
Which pays a higher dividend, USO or VOO?
USO yields 0.00% while VOO yields 1.09%, so VOO currently pays the higher dividend yield.
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