At a glance
Over the past year it returned +50.5% with distributions reinvested (S&P 500: +11.5%), 5th of those 8 funds; over three years it returned +12.9% a year. At its worst it fell 53.6% in the 2020 crash (S&P 500: 33.7%) and 23.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 73 months and 11 months after the lows.
The short version
ETRACS Crude Oil Shares Covered Call ETN (USOI) is an exchange-traded note from UBS: unsecured bank debt, not a fund, that pays the return of a covered-call strategy linked to crude oil, minus fees. Its monthly payments over the prior 12 months equaled 59.24% of its price as of October 27, 2026. The trade-off is steep risk: a 77.3% fall from October 2018 to May 2020 had not been recovered by that date.
Price history
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USOI +50.5% 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 | |
|---|---|---|---|---|---|---|
| USOI price data to Oct 27, 2026 | +54.7% | +50.5% | +12.9% | +13.8% | — | +2.2% |
- Over the year to Oct 27, 2026, USOI returned +50.5%, 5th of 8 among similar funds.
- Its 5-year annualized return was +13.8%.
- In the 2020 COVID crash it fell 53.6% and regained its old high 73.4 months after the low.
- Its worst full calendar year was 2020 (-65.5%); its best was 2021 (+37.3%).
- The deepest fall in its price history was 77.3% (Oct 2, 2018 to May 13, 2020), not yet recovered.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +54.7% |
| 2025 | -8.8% |
| 2024 | +15.0% |
| 2023 | +6.2% |
| 2022 | +14.2% |
| 2021 | +37.3% |
| 2020 | -65.5% |
| 2019 | +33.6% |
| 2018 | -21.2% |
| 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 | Lost 51.5% over that stretch · deepest drop along the way 53.6%, back to its old high 73.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Gained 11.8% over that stretch · deepest drop along the way 23.2%, back to its old high 11.2 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $25.1502 | |
| 2025 | $12.8900 | -9.2% |
| 2024 | $14.1900 | -23.8% |
| 2023 | $18.6100 | -47.8% |
| 2022 | $35.6400 | +68.1% |
| 2021 | $21.2000 | -66.3% |
| 2020 | $63.0000 | -14.6% |
| 2019 | $73.8000 | +47.0% |
| 2018 | $50.2000 |
How it works
USOI is an exchange-traded note (ETN) issued by UBS, not a fund. Owning it means holding UBS's unsecured debt. The note owns no oil, options or other assets on holders' behalf. Instead, UBS promises to pay the return of an index, minus fees, as long as it can pay. So UBS's financial health is part of the risk. UBS can also redeem the notes early, which could end a holder's position at an awkward time.
As its name indicates, the index follows a covered-call strategy linked to crude oil. In a covered call, an investor owns an asset and sells call options on it. A call option gives its buyer the right to purchase the asset at a set price. Selling one brings in cash up front, called a premium. The catch: if the asset jumps past that price, the extra gain goes to the option buyer, while falls are softened only by the premium. Each monthly payment comes out of the note's value, so a high yield is not the same as a high total return.
The index's name, which options it sells, how often it replaces them and the note's annual fee aren't covered here; UBS's offering documents for the notes set them out. Because the note holds nothing, there is no portfolio to rebalance.
What it really costs
Structure and tax notes
- An exchange-traded note: unsecured debt of the issuing bank, not a fund. It owns no assets on investors’ behalf; it pays the index return minus fees only as long as the issuer can pay, so the bank’s credit matters, and the issuer can redeem the notes early.
In a retirement portfolio
Its large monthly payouts come with a 77.3% fall still unrecovered as of October 27, 2026, plus reliance on UBS's credit, which points to a small, higher-risk role.
USOI's monthly payments are large, a trailing 59.24% yield as of October 27, 2026, but its value is fragile. It launched after the 2008 crisis. In the 2020 COVID crash it fell 53.6% between February 19 and March 18 and took about 73 months to climb back. Calendar 2020, its worst year, was a 65.5% loss. In the 2022 bear market it rose 11.8%, though it still slid 23.2% from June to September, recovering in about 11 months. Its deepest fall, 77.3% from October 2018 to May 2020, remained unrecovered as of October 27, 2026.
A retiree forced to cash out in a year like 2020 would have locked in heavy losses, and payments depend on UBS's ability to pay. The note's fee isn't listed here; funds in its category averaged 0.64%. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting large monthly payments tied to crude oil who accept swings like a 65.5% loss in 2020 followed by a 37.3% gain in 2021.
- People comfortable holding unsecured UBS debt, which can be redeemed early, for a 59.24% trailing yield as of October 27, 2026.
- Those wanting a small oil position that moved differently from stocks, gaining 11.8% during the 2022 bear market.
Look elsewhere if
- Retirees who can't absorb deep losses: USOI's 77.3% fall from October 2018 to May 2020 remained unrecovered as of October 27, 2026.
- Investors wanting a fund that owns its holdings: this ETN holds no assets for investors, so payment depends on UBS's credit.
- Anyone wanting oil's full upside: covered calls cap gains, and USOI ranked last of eight category funds on three-year returns to October 27, 2026.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| USOI this fund | — | — | +50.5% | +12.9% |
| PHYS Sprott Physical Gold Trust | — | $10.70B | +2.4% | +25.4% |
| PDBC Invesco Optimum Yield Diversified Commodity… | 0.59% | $4.90B | +53.4% | +14.8% |
| FTGC First Trust Global Tactical Commodity Strat… | 1.02% | $2.50B | +37.4% | +16.9% |
| XOP SPDR S&P Oil & Gas Exploration & Production… | 0.35% | $2.20B | +59.0% | +14.2% |
| BCI abrdn Bloomberg All Commodity Strategy K-1 … | 0.26% | $1.40B | +37.6% | +14.9% |
| DBC Invesco DB Commodity Index Tracking Fund | 0.85% | $1.30B | +52.2% | +15.3% |
| GSG iShares S&P GSCI Commodity-Indexed Trust | 0.75% | $1.10B | +59.6% | +18.7% |
Questions investors ask
Is USOI good for retirement income?
It's a high-risk source of income, not a steady one. USOI pays monthly, and its trailing yield was 59.24% as of October 27, 2026. But the note lost 65.5% in 2020, and its 77.3% fall from October 2018 to May 2020 had not been recovered by October 27, 2026. Payments come out of the note's value and depend on UBS's ability to pay. Retirees who rely on steady income may find those swings hard to live with.
Does USOI pay monthly dividends?
Yes, USOI pays monthly, though its payments come from a note, not stock dividends. Over the 12 months to October 27, 2026, it paid $26.38 per share, a trailing yield of 59.24%. That is far above its three-year return of 12.9% a year to the same date, a reminder that payments come out of the note's value. A big yield here doesn't mean a big gain.
What's the difference between USOI and XOP?
They get oil exposure in very different ways. USOI is a UBS exchange-traded note: unsecured debt that pays the return of a covered-call crude oil strategy minus fees, with no assets held for investors. XOP, the SPDR S&P Oil & Gas Exploration & Production ETF, is a fund that follows an S&P index of oil and gas producers, with a 0.35% annual expense ratio. As of October 27, 2026, XOP returned 59% over one year versus USOI's 50.5%, and 14.2% versus 12.9% a year over three years.
Is USOI an ETF or an ETN?
USOI is an ETN, or exchange-traded note, not an ETF. It trades on an exchange, but it is unsecured debt issued by UBS rather than a fund, and it owns no assets on holders' behalf. UBS promises to pay the index return minus fees, so if UBS couldn't pay, holders could lose money no matter what oil did. UBS can also redeem the notes early, which could cut short a holder's position.
What is USOI's expense ratio?
USOI's annual fee isn't available on this page; UBS sets it out in the note's offering documents. As an ETN, it pays the index return minus fees, so the fee reduces what holders receive. For rough context, funds in its category averaged a 0.64% expense ratio, ranging from 0.26% for BCI to 1.02% for FTGC. Those funds follow different strategies, mostly commodity-based, so they're cost benchmarks, not direct substitutes.