USO vs VXUS

Quick Verdict

VXUS has a lower expense ratio. USO delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.

Lower Fees: VXUSHigher Returns: USOMore Diversified: VXUS

Side-by-Side Comparison

MetricUSOVXUSWinner
Expense Ratio0.86%0.05%
AUM$2.2B$156.5B
Dividend Yield0.00%2.60%
Holdings78,747
YTD Return+71.08%+14.57%
1Y Return+60.69%+27.82%
3Y Return (annualized)+16.80%+19.27%
5Y Return (annualized)+20.44%+9.28%
Volatility (annualized)37.8%15.1%
Max Drawdown-98.2%-39.9%
Fund FamilyUSCF InvestmentsVanguard (US)
CategoryCommodityEquity
InceptionApr 10, 2006Jan 26, 2011

USO vs VXUS Performance

United States Oil Fund (USO) is a ETF from USCF Investments and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year USO returned +60.69% while VXUS returned +27.82%. Year to date, USO is up 71.08% versus a gain of 14.57% for VXUS.

Over three years, USO compounded at +16.80% per year against +19.27% for VXUS; over five years the annualized figures are +20.44% and +9.28% respectively. Across the full 16-year window we track, VXUS has the edge at +4.86% annualized vs -7.25%. 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

USO charges 0.86% per year while VXUS charges 0.05%. On a $10,000 position that is $86 vs $5 annually, a gap of $81 per year that compounds over a long holding period. On income, USO currently yields 0.00% against 2.60% for VXUS.

Holdings Overlap

0.0%overlap

USO and VXUS share 0 holdings out of 7863 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 VXUS?

USO has an expense ratio of 0.86% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $81 per year of difference.

Which performed better, USO or VXUS?

Over the past year USO returned +60.69% vs +27.82% for VXUS, so USO leads on 1-year performance. Over the longest common window we track (16 years), USO annualized -7.25% vs +4.86% for VXUS. Past performance does not guarantee future results.

Which is riskier, USO or VXUS?

USO has been the more volatile fund at 37.8% annualized versus 15.1% for VXUS. Worst drawdown: USO -98.2% vs VXUS -39.9%.

Should I hold both USO and VXUS?

USO and VXUS have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between USO and VXUS?

USO and VXUS share 0 common holdings with a 0.0% weight overlap. Combined, they hold 7863 unique securities.

Which pays a higher dividend, USO or VXUS?

USO yields 0.00% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.

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