USO surged 70% year-to-date versus XLE’s 29%, driven by front-month WTI exposure amid geopolitical tensions and contango losses.
The United States Oil Fund (USO) has risen 70.32% year-to-date through July 13, 2026, outpacing the Energy Select Sector SPDR Fund (XLE) by over 40 percentage points. The gap stems from USO’s direct exposure to front-month WTI, which spiked from $60.04 to $114.58 in April before settling at $69.60.
XLE, weighted heavily toward Exxon Mobil and Chevron, underperformed as refining margins and integrated cash flows lagged spot crude’s volatility. Over a decade, XLE returned 146% versus USO’s 34%, reflecting structural disadvantages like monthly futures rolls in contango markets.
USO’s gains come with tax complexities, including K-1 forms and potential UBTI in retirement accounts, unlike XLE’s standard 1099 reporting.