What is the fundamental difference between UCO and USO?

UCO is a leveraged commodity fund designed to amplify daily moves in oil futures, whereas USO seeks to replicate the spot price of West Texas Intermediate crude oil. Leveraged funds like UCO use derivatives to double or triple daily returns, introducing complexity and risk that non-leveraged funds like USO do not have. Investors should understand that this structural difference means the two funds serve very different purposes in a portfolio.

How do expense ratios impact these oil ETFs over time?

UCO has a 1.43% expense ratio, while USO charges 0.60%. Over time, higher fees reduce net returns. The 0.83 percentage point difference between the funds' expense ratios represents the cost of their differing strategies. For example, on a $10,000 investment, UCO's higher fee could cost $83 more per year than USO's. This difference compounds over time, making the fee comparison crucial for long-term investors, even if both funds are generally used for short-term purposes.

What does 'index tracked: not available' mean for these funds?

For UCO and USO, the index tracked is listed as not available in the provided data. This means the specific benchmark each fund aims to replicate is not disclosed here. However, these funds generally track oil futures contracts, particularly those on West Texas Intermediate crude oil. The lack of a specific index name in the data does not mean they are unmanaged, but rather that the source material did not provide the specific index identifier.

What are the primary holdings and how do they differ?

UCO's top holding is IQMM, representing 24.26% of its assets, while USO's top holdings are not available in the provided data. UCO's exposure is likely through cash-equivalent instruments used to back its leveraged derivative positions, rather than direct equity holdings. USO typically holds short-term U.S. Treasury bills as collateral for its futures contracts. This fundamental difference reflects their contrasting structures: one uses derivatives to amplify moves, while the other uses futures to track spot prices.

How do the dividend yields of UCO and USO compare?

Both UCO and USO have a dividend yield of 0.00%. This means neither fund distributes dividends from its holdings to investors. As commodity-based ETFs, their returns come solely from changes in the price of the underlying oil futures contracts. If an oil company were to pay dividends, it would be reflected in the company's stock price, not directly distributed by these ETFs to their shareholders.

What kind of investor might consider UCO or USO?

UCO is generally associated with short-term traders seeking to leverage daily moves in oil prices. USO is used by investors seeking direct exposure to oil price movements without leverage. Neither fund is suitable for passive buy-and-hold investors due to their complex structures and potential for value erosion from compounding. They are best used by experienced investors with a clear, short-term thesis on the direction of oil markets, and who understand the risks of commodity ETFs.

How do the net assets of UCO and USO differ?

USO has significantly larger net assets at $2.0 billion, compared to UCO's $438 million. A larger asset base can influence liquidity and the potential for higher trading volume. While both funds trade on major exchanges, USO's size may be more familiar to many investors. However, UCO's smaller size does not inherently indicate a problem, but it is a key difference when comparing the two funds' scale.

How do these funds react to oil price changes?

UCO and USO both track oil prices, but in different ways. USO aims to follow the daily percentage change in oil futures contracts. UCO, being a leveraged fund, seeks a multiple of that daily change. For example, if oil futures rise by 1% in a day, USO might aim to gain approximately 1%, while UCO could aim to gain a larger, multiple percentage. Conversely, on a negative day, losses are also magnified for UCO.

Is either fund suitable for long-term oil exposure?

Neither UCO nor USO is generally considered suitable for long-term 'buy and hold' exposure. The data shows UCO is a leveraged fund, and its expense ratio is higher. Over time, the daily reset feature of leveraged ETFs can cause returns to deviate significantly from the long-term performance of the underlying index. Both funds are designed for investors with short-term, tactical views on oil prices, not for building long-term wealth.

Where can I find more detailed information on these funds?

You can find more detailed information on UCO and USO by visiting the websites of their respective issuers, ProShares for UCO and USCF for USO. These official pages provide prospectuses, daily NAV calculations, and information on how futures markets operate. For real-time trading data, use your brokerage platform. Always refer to the official fund documentation for the most accurate and up-to-date information regarding their structures and risks.

What are the key risks I should know before investing?

Investing in UCO and USO involves several key risks. UCO is a leveraged ETF, which means its losses are amplified if oil prices move against your position. Both funds are subject to the volatility of commodity markets and the specific structure of futures contracts, which can lead to performance that does not match the spot price of oil over longer periods. This content is for educational purposes only and not financial advice. Please consult a qualified professional.

UCO vs USO

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare UCO and USO to review fees, holdings, and dividends. UCO has a 1.43% expense ratio while USO is 0.60%. This page outlines how each fund tracks its market, examining their differences in asset management and structure for an objective overview. Educational content, not financial advice.

Compare UCO and USO to review fees, holdings, and dividends. UCO has a 1.43% expense ratio while USO is 0.60%. This page outlines how each fund tracks its market, examining their differences in asset ...

Fund Snapshot

Key Fund Metrics

UCO

Metric

USO

1.43%

Expense Ratio

0.60%

0.00%

Dividend Yield

0.00%

$437.92M

Net Assets

$2.04B

20

Holdings

26

Nov 25, 2008

Inception Date

Apr 10, 2006

–

Index Tracked

–

Trading--Leveraged Commodities

Fund Category

Commodities Focused

USO costs about $83.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

UCO

Pros

],
cons
],

Considerations

]
],
]

USO

Pros

],
],
]

Considerations

],
],
]

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About UCO and USO

UCO (UCO)

USO (USO)

USO (United States Oil Fund) is an exchange-traded fund that seeks to provide investors with liquid exposure to movements in the price of West Texas Intermediate (WTI) crude oil by investing primarily in front-month WTI futures and related instruments. It is a tool often used for short-term tactical exposure to oil prices rather than a long-term buy-and-hold vehicle, because its performance can diverge from spot oil due to futures roll costs, contango or backwardation, and fees. Investors should be aware of volatility, the mechanics of futures contracts, and the fund’s operating expenses. This information is for general educational purposes only and is not personal investment advice. Commodity ETFs can be complex and may not be suitable for all investors; consider your risk tolerance and investment horizon before investing.

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Buy UCO or USO in Nemo

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Fund Snapshot

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