At a glance
USO charges 0.7% a year, below the 0.75% average of the 7 funds most like it (the 4th cheapest of 8). It has $1.90B in assets, the 2nd largest of that group. Over the past year it returned +124.1% with distributions reinvested (S&P 500: +11.5%), 2nd of those 8 funds; over three years it returned +27.9% a year. At its worst it fell 31.3% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 41 months after the low.
The short version
United States Oil Fund LP (USO) is a commodity pool, a fund that trades futures contracts. It holds short-term futures on light, sweet crude oil delivered to Cushing, Oklahoma, backed by Treasury bills and cash, rather than barrels of oil or oil company stocks. It had $1.90 billion in net assets as of June 30, 2026. It charges 0.70% a year, slightly below the 0.75% average of similar funds, and sends holders a Schedule K-1 for taxes.
Price history
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USO +124.1% 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 | |
|---|---|---|---|---|---|---|
| USO price data to Oct 27, 2026 | +137.0% | +124.1% | +27.9% | +23.6% | — | +32.5% |
- Over the year to Oct 27, 2026, USO returned +124.1%, 2nd of 8 among similar funds.
- Its 5-year annualized return was +23.6%.
- Its worst full calendar year was 2025 (-8.5%); its best was 2021 (+64.7%).
- The deepest fall in its price history was 36.2% (Jun 8, 2022 to Mar 17, 2023), recovered by Mar 5, 2026.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +137.0% |
| 2025 | -8.5% |
| 2024 | +13.3% |
| 2023 | -4.9% |
| 2022 | +29.0% |
| 2021 | +64.7% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Not in the price data, which starts Jun 2, 2020 |
|---|---|
| 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 29.4% over that stretch · deepest drop along the way 31.3%, back to its old high 41.3 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 $1.90B 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
USO does not track a stock or bond index. A futures contract is an agreement to buy or sell a commodity at a set price on a future date. USO aims for the daily percentage change in its net asset value (NAV, the per-share value of its holdings) to match the daily percentage change in the "Benchmark Oil Futures Contract." That is a short-term futures contract on light, sweet crude oil delivered to Cushing, Oklahoma. Interest on the fund's collateral is added and expenses are taken out. The fund meets its goal if, over any 30 straight trading days, its average daily change stays within plus or minus 10% of the benchmark's. Single days can differ noticeably.
After the Spring 2020 turmoil, USO held a broader mix of oil investments. Between the September 2023 and January 2024 monthly rolls, it moved back to mainly holding the benchmark contract. It may still use other futures, such as other crude, gasoline, diesel-heating oil or natural gas contracts, plus options, swaps and over-the-counter deals, if position limits, liquidity or risk controls require it. Treasuries maturing in two years or less, plus cash, back its margin.
Futures expire, so each month USO rolls into a later contract. When later contracts cost more (contango), rolling drags on returns. When they cost less (backwardation), rolling helps. Over time, this can pull USO well away from the spot price of oil. United States Commodity Funds LLC, owned by Marygold, manages the fund as its general partner.
What it really costs
- USO charges 0.7% a year, versus an average of 0.75% for the similar funds below (4th 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
USO gives concentrated exposure to crude oil futures with large swings and no income, so it fits at most as a small add-on rather than a foundation.
USO adds oil-price exposure that has sometimes moved differently from stocks. During the 2022 bear market, from January 3 to October 12, 2022, it gained 29.4%. But it swings hard. It fell 31.3% from June 8 to September 26, 2022. Its deepest drop was 36.2%, from June 8, 2022 to March 17, 2023, and it took about 35.6 months to recover, until March 5, 2026. Its weakest calendar year was 2025, at -8.5%. The price history starts June 2, 2020, so it does not cover 2008 or the 2020 crash.
USO pays no distributions, so getting cash means selling shares, possibly after a slump. Its 0.70% expense ratio comes on top of brokerage costs and roll effects. Past results don't predict the future, and a plan should weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a small position in short-term crude oil futures themselves, rather than in oil company stocks.
- Holders who can stand big swings: USO's annualized volatility was 49.9% over the year to October 27, 2026.
- Those who want a large, long-running oil-futures fund, with $1.90 billion in net assets as of June 30, 2026, and trading since 2006.
Look elsewhere if
- Investors who need regular income: USO has no recorded distributions.
- Investors who want simple taxes: USO issues a Schedule K-1, and holders may owe tax on gains even without selling.
- Long-term holders who expect to match oil prices over years: rolling futures, contango and backwardation can pull returns away from spot crude.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| USO this fund | 0.7% | $1.90B | +124.1% | +27.9% |
| XOP SPDR S&P Oil & Gas Exploration & Production… | 0.35% | $2.20B | +59.0% | +14.2% |
| 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% |
| UGA United States Gasoline Fund LP | 1.17% | $90.0M | +118.7% | +29.3% |
Questions investors ask
Is USO a good investment for retirement?
USO is a small, higher-risk satellite holding rather than a core retirement fund. It holds crude oil futures, pays no distributions and swings sharply: its annualized volatility was 49.9% over the year to October 27, 2026. Its deepest drop, 36.2% from June 8, 2022 to March 17, 2023, was not fully recovered until March 5, 2026. It returned 124.1% over the year to October 27, 2026, but past results don't predict the future.
Does USO pay dividends?
No. USO has no recorded distributions. It holds oil futures plus Treasuries and cash. Interest earned on that collateral stays in the fund and shows up in its net asset value instead of being paid out. Investors who need cash from USO would have to sell shares. Because USO is taxed as a partnership, holders can still owe tax each year on their share of its gains, even if they receive no cash.
USO vs DBO: what's the difference?
USO is slightly cheaper and has posted higher returns. USO charges 0.70% a year versus 0.75% for the Invesco DB Oil Fund (DBO). As of October 27, 2026, USO returned 124.1% over one year and 27.9% a year over three years. DBO returned 104.3% and 18.9% over the same periods. USO aims to follow a single short-term light, sweet crude contract delivered to Cushing, Oklahoma. How each fund chooses and rolls its contracts affects results, so the two can diverge.
Why doesn't USO match the price of oil?
Because USO owns futures contracts, not oil. Each month it sells contracts that are about to expire and buys later ones. When later contracts cost more (contango), that roll eats into returns. When they cost less (backwardation), it adds to them. USO aims to track the daily percentage moves of its benchmark futures contract. Its annual report says the goal is not to track any contract over periods longer than one day. Fees and interest on collateral also create gaps.
Does USO send a K-1 or a 1099?
USO sends a K-1. It is a commodity pool organized as a Delaware limited partnership, so it is taxed as a partnership. Holders receive a Schedule K-1 rather than a Form 1099. They owe tax each year on their share of the fund's gains, even if they don't sell. USO is also not registered under the Investment Company Act of 1940, so it lacks some protections that apply to mutual funds and most ETFs.