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Heat oil in a large saucepan over medium heat. Add onion and cook, stirring, until beginning to brown, about 4 minutes. Add broth, potato, salt and pepper; bring to a boil. Reduce heat to a simmer, cover and cook until the potato is just tender, about 8 minutes. Add beets and vinegar; return to a boil. Cover and continue cooking until the broth is deep red and the potato is very soft, 2 to 3 minutes more.
Combine sour cream and horseradish in a small bowl. Serve the soup with a dollop of the horseradish sour cream and a sprinkle of parsley.