The use of nonselective AlGaAs oxidation (i.e., via the use of controlled, dilute O2 addition during wet thermal oxidation) enables a significant propagation loss reduction in fully oxidized Al0.3Ga0.7As/Al0.85Ga0.15As planar oxide single heterostructure waveguides. Prism coupling measurements are utilized to characterize the oxidized waveguide cladding and core layer thicknesses, refractive indices, and propagation loss. At a wavelength of 633 nm, above the Al0.3Ga0.7As core’s bandgap energy, the strongly absorbing semiconductor heterostructure waveguide is converted by nonselective oxidation to a transparent oxide heterostructure waveguide with a propagation loss of only 5.0 dB/cm (1.15 cm−1). A low loss of 3.6 dB/cm (0.83 cm−1) is obtained at 1.3 μm.