USO Surged 70% YTD vs XLE's 29% Amid Market Dynamics

As of July 13, 2026, the United States Oil Fund (USO) has gained 70.32% year-to-date, significantly outpacing the Energy Select Sector SPDR Fund (XLE), which has increased by 28.64%. Over the past ten years, XLE has returned 146.29%, while USO's return stood at 33.97%. The differences arise from how these funds operate in contango markets, where USO sells low and buys high when rolling futures, unlike XLE, which benefits from dividends and stock buybacks. This performance disparity highlights the risks of short-term trading versus long-term investing for energy equity investors.