USO vs VYM
United States Oil Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. USO delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | USO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.86% | 0.04% | |
| AUM | $2.2B | $79.0B | |
| Dividend Yield | 0.00% | 2.86% | |
| Holdings | 7 | 568 | |
| YTD Return | +85.05% | +16.16% | |
| 1Y Return | +72.91% | +26.05% | |
| 3Y Return (annualized) | +20.08% | +18.43% | |
| 5Y Return (annualized) | +21.45% | +12.21% | |
| Volatility (annualized) | 37.8% | 14.6% | |
| Max Drawdown | -98.2% | -58.8% | |
| Fund Family | USCF Investments | Vanguard (US) | |
| Category | Commodity | Equity | |
| Inception | Apr 10, 2006 | Nov 10, 2006 |
USO vs VYM Performance
United States Oil Fund (USO) is a ETF from USCF Investments and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year USO returned +72.91% while VYM returned +26.05%. Year to date, USO is up 85.05% versus a gain of 16.16% for VYM.
Over three years, USO compounded at +20.08% per year against +18.43% for VYM; over five years the annualized figures are +21.45% and +12.21% respectively. Across the full 20-year window we track, VYM has the edge at +7.09% annualized vs -6.88%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
USO charges 0.86% per year while VYM charges 0.04%. On a $10,000 position that is $86 vs $4 annually, a gap of $82 per year that compounds over a long holding period. On income, USO currently yields 0.00% against 2.86% for VYM.
Holdings Overlap
USO and VYM share 0 holdings out of 560 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 VYM?
USO has an expense ratio of 0.86% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $82 per year of difference.
Which performed better, USO or VYM?
Over the past year USO returned +72.91% vs +26.05% for VYM, so USO leads on 1-year performance. Over the longest common window we track (20 years), USO annualized -6.88% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, USO or VYM?
USO has been the more volatile fund at 37.8% annualized versus 14.6% for VYM. Worst drawdown: USO -98.2% vs VYM -58.8%.
Should I hold both USO and VYM?
USO and VYM have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between USO and VYM?
USO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 560 unique securities.
Which pays a higher dividend, USO or VYM?
USO yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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