At a glance
USL charges 0.79% a year, above the 0.68% average of the 7 funds most like it (the 6th cheapest of 8). It has $40.7M in assets, the 8th largest of that group. Over the past year it returned +81.5% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds; over three years it returned +16.8% a year. At its worst it fell 30.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 42 months after the low.
The short version
United States 12 Month Oil Fund (USL) is a commodity pool run by United States Commodity Funds (USCF). It holds US crude oil futures, not physical oil or oil company stocks. Most oil funds own only the next contract to expire. USL instead holds 12 consecutive monthly contracts in equal amounts. That can soften the cost of rolling futures. However, its 0.79% expense ratio is higher than the 0.70% charged by its sister fund USO, and holders get a K-1 tax form.
Price history
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USL +81.5% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| USL price data to Oct 27, 2026 | +89.8% | +81.5% | +16.8% | +16.9% | — | +26.4% |
- Over the year to Oct 27, 2026, USL returned +81.5%, 4th of 8 among similar funds.
- Its 5-year annualized return was +16.9%.
- Its worst full calendar year was 2025 (-12.4%); its best was 2021 (+62.5%).
- The deepest fall in its price history was 33.8% (Jun 8, 2022 to Mar 17, 2023), recovered by Mar 11, 2026.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +89.8% |
| 2025 | -12.4% |
| 2024 | +8.3% |
| 2023 | -1.1% |
| 2022 | +27.1% |
| 2021 | +62.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Not in the price data, which starts Jun 2, 2020 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 24.4% over that stretch · deepest drop along the way 30.2%, back to its old high 41.5 months after the low |
What's inside
The fund holds futures contracts and the cash and Treasury bills backing them, not the commodity itself; its net assets were $40.7M as of Jun 30, 2026 (per its 10-Q). As a commodity pool it files 10-Q and 10-K reports instead of N-PORT holdings reports, so there is no holdings list.
How it works
USL does not follow a published index. It aims for the daily percentage change in its net asset value (NAV, the per-share value of its holdings) to reflect the daily change in the average price of 12 crude oil futures contracts. These are light, sweet crude contracts traded on the New York Mercantile Exchange (NYMEX). The fund holds the contract closest to expiring plus the next 11 months, each weighted equally. When the nearest contract is within two weeks of expiring, the fund moves on to the next 12 months. Returns add interest earned on its cash collateral and subtract expenses.
Futures contracts expire, so the fund keeps selling contracts before they expire and buying later ones. This is called rolling. When later contracts cost more (contango), rolling drags on returns. When they cost less (backwardation), rolling can help. The objective is a daily one, so over longer periods results can drift well away from spot oil prices. The target is also loose: the fund meets it if its average daily change over 30 days stays within plus or minus 10% of the benchmark's.
USL may also use other energy futures, such as gasoline, diesel-heating oil and natural gas. It may also use options, forwards, swaps and private over-the-counter contracts. It is a limited partnership controlled by USCF, a Marygold subsidiary, and shareholders have little say in how it is run.
What it really costs
- USL charges 0.79% a year, versus an average of 0.68% for the similar funds below (6th of 8, cheapest first).
Structure and tax notes
- A commodity pool: it holds futures contracts (and the cash and Treasury bills backing them), not the commodity itself, and it is not a 1940 Act investment company, so it lacks some fund-specific investor protections. It is taxed as a partnership: investors get a Schedule K-1 rather than a 1099 and owe tax on their share of its gains each year, even without selling. Expiring contracts must be rolled into later ones, and the price gap between them adds to or takes from returns, so over time it can drift well away from the spot price of what it tracks. Besides the sponsor's fee, it pays brokerage commissions and other costs.
In a retirement portfolio
USL is a narrow, volatile bet on crude oil futures with no income, so it fits only as a small add-on to a broader portfolio.
USL could add oil-price exposure that often moves differently from stocks. Its one-year beta, a measure of how much a fund moves with the stock market, was -0.84 as of October 27, 2026. That means it tended to move against the market. It gained 24.4% during the 2022 bear market, yet it fell 30.2% between June and September 2022. Its deepest drop was 33.8%, from June 2022 to March 2023, and it did not recover until March 2026. The fund's price history starts in June 2020, so the 2008 and 2020 crashes aren't covered. Its worst calendar year was 2025, at -12.4%. It pays no distributions, so a retiree needing cash would have to sell shares, possibly after a steep fall. Its 0.79% expense ratio is above the 0.68% average for similar funds. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want crude oil price exposure through futures spread across 12 monthly contracts, rather than oil company stocks like those held by XOP or IEO.
- People who can stomach big swings: one-year volatility was 30.4%, and the fund's 33.8% drop took about 36 months to recover from its low.
- Holders who are comfortable with a Schedule K-1 and with owing tax each year on their share of gains, even without selling.
Look elsewhere if
- Investors who need income from their holdings: USL has no recorded distributions, so cash would have to come from selling shares.
- Cost-focused investors: the 0.79% expense ratio ranks 6th of 8 among similar funds, above USO's 0.70% and XOP's 0.35%.
- Those who prefer larger funds: USL had about $40.7 million in total assets as of June 30, 2026, the smallest in its peer group.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| USL this fund | 0.79% | $40.7M | +81.5% | +16.8% |
| XOP SPDR S&P Oil & Gas Exploration & Production… | 0.35% | $2.20B | +59.0% | +14.2% |
| USO United States Oil Fund LP | 0.7% | $1.10B | +124.1% | +27.9% |
| IEO iShares U.S. Oil & Gas Exploration & Produc… | 0.4% | $567.1M | +67.3% | +18.3% |
| UNG United States Natural Gas Fund LP | 1.01% | $440.3M | -25.2% | -30.6% |
| DBO Invesco DB Oil Fund | 0.75% | $197.5M | +104.3% | +18.9% |
| FTXN First Trust Nasdaq Oil & Gas ETF | 0.6% | $157.3M | +57.0% | +16.5% |
| BNO United States Brent Oil Fund LP | 0.94% | $98.1M | +134.6% | +30.4% |
Questions investors ask
What's the difference between USL and USO?
Both are oil futures commodity pools run by United States Commodity Funds. USL holds 12 consecutive monthly crude contracts in equal amounts. USL costs more, at 0.79% a year versus 0.70% for USO, and it is much smaller. USO has about $1.1 billion in net assets. As of October 27, 2026, USO returned 124.1% over one year versus 81.5% for USL. Over three years, USO returned 27.9% a year versus 16.8% for USL.
Does USL pay dividends?
No. USL has no recorded distributions. Its returns come from changes in the prices of the crude oil futures it holds, plus interest earned on the cash collateral backing those contracts, minus expenses. Anyone who wants regular cash from it would have to sell shares, and selling after a fall could lock in losses. The fund's deepest drop was 33.8%, from June 2022 to March 2023.
Does USL send a K-1 or a 1099?
USL sends a Schedule K-1, not a 1099. It is a limited partnership and a commodity pool, so it is taxed as a partnership. Investors owe tax on their share of the fund's gains each year, even if they never sell shares. K-1 forms can make tax filing more complicated. Because USL is not a 1940 Act investment company, it also lacks some investor protections that regular funds have.
Why doesn't USL match the price of oil?
USL holds futures contracts, not oil. It aims to track the daily change in the average price of 12 monthly NYMEX crude contracts, and that average can differ from the spot price. The fund also rolls expiring contracts into later ones. Contango, when later contracts cost more, drags on returns. Backwardation, when they cost less, helps. The fund's target is loose, too: its 30-day average daily change only has to stay within plus or minus 10% of the benchmark's.
Is USL good for a retirement portfolio?
USL is a narrow, volatile oil holding. It pays no income and is better described as a small satellite position than a core one. Its one-year volatility was 30.4% as of October 27, 2026. Calendar-year returns ranged from 62.5% in 2021 to -12.4% in 2025. Its deepest drop, 33.8%, took until March 2026 to recover. It costs 0.79% a year and comes with K-1 tax forms. Past results don't predict future returns.