BND vs. XLE
BND (Vanguard Total Bond Market ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - BND is a Total Bond Market fund tracking the Bloomberg U.S. Aggregate Float Adjusted Index, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, BND returned 1.58%/yr vs 9.91%/yr for XLE. At a correlation of -0.20, they often move in opposite directions. BND charges 0.03%/yr vs 0.08%/yr for XLE.
Performance
BND vs. XLE - Performance Comparison
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Returns By Period
In the year-to-date period, BND achieves a 0.52% return, which is significantly lower than XLE's 29.56% return. Over the past 10 years, BND has underperformed XLE with an annualized return of 1.58%, while XLE has yielded a comparatively higher 9.91% annualized return.
BND
- 1D
- -0.12%
- 1M
- 0.45%
- YTD
- 0.52%
- 6M
- 0.91%
- 1Y
- 4.77%
- 3Y*
- 4.17%
- 5Y*
- 0.03%
- 10Y*
- 1.58%
XLE
- 1D
- 0.75%
- 1M
- -0.90%
- YTD
- 29.56%
- 6M
- 28.37%
- 1Y
- 34.84%
- 3Y*
- 16.18%
- 5Y*
- 20.12%
- 10Y*
- 9.91%
BND vs. XLE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 0.52% | 7.08% | 1.38% | 5.65% | -13.11% | -1.86% | 7.71% | 8.84% | -0.12% | 3.57% |
XLE State Street Energy Select Sector SPDR ETF | 29.56% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
Correlation
The correlation between BND and XLE is -0.23, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | -0.24 |
Correlation (3Y) Calculated over the trailing 3-year period | -0.06 |
Correlation (5Y) Calculated over the trailing 5-year period | -0.10 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.15 |
Correlation (All Time) Calculated using the full available price history since Apr 10, 2007 | -0.20 |
The correlation between BND and XLE shifts across timeframes, from -0.23 (1 year) to -0.06 (3 years), reflecting how their relationship changes across market environments.
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Return for Risk
BND vs. XLE — Risk / Return Rank
BND
XLE
BND vs. XLE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Total Bond Market ETF (BND) and State Street Energy Select Sector SPDR ETF (XLE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| BND | XLE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.63 | ||
| Sortino ratioReturn per unit of downside risk | -0.63 | ||
| Omega ratioGain probability vs. loss probability | 1.21 | 1.30 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | 1.65 | 3.10 | -1.45 |
| Martin ratioReturn relative to average drawdown | 4.81 | 8.63 | -3.83 |
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Drawdowns
BND vs. XLE - Drawdown Comparison
The maximum BND drawdown since its inception was -18.58%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for BND and XLE.
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Drawdown Indicators
| BND | XLE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -18.58% | -71.26% | +52.68% |
Max Drawdown (1Y)Largest decline over 1 year | -2.68% | -12.05% | +9.37% |
Max Drawdown (3Y)Largest decline over 3 years | -5.92% | -20.14% | +14.22% |
Max Drawdown (5Y)Largest decline over 5 years | -17.91% | -26.04% | +8.13% |
Max Drawdown (10Y)Largest decline over 10 years | -18.58% | -66.81% | +48.23% |
Current DrawdownCurrent decline from peak | -2.12% | -8.01% | +5.89% |
Average DrawdownAverage peak-to-trough decline | -3.06% | -17.97% | +14.91% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 0.92% | 4.32% | -3.40% |
Volatility
BND vs. XLE - Volatility Comparison
The current volatility for Vanguard Total Bond Market ETF (BND) is 1.28%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 7.26%. This indicates that BND experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| BND | XLE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.28% | 7.26% | -5.98% |
Volatility (6M)Calculated over the trailing 6-month period | 2.74% | 16.79% | -14.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.75% | 20.57% | -16.82% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 6.03% | 26.05% | -20.02% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 5.53% | 29.58% | -24.05% |
BND vs. XLE - Expense Ratio Comparison
BND has a 0.03% expense ratio, which is lower than XLE's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
BND vs. XLE - Dividend Comparison
BND's dividend yield for the trailing twelve months is around 3.96%, more than XLE's 2.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
BND Vanguard Total Bond Market ETF | 3.96% | 3.86% | 3.67% | 3.09% | 2.60% | 2.12% | 2.38% | 2.72% | 2.81% | 2.54% | 2.51% | 2.57% |
XLE State Street Energy Select Sector SPDR ETF | 2.59% | 3.28% | 3.36% | 3.55% | 3.68% | 4.21% | 5.62% | 6.72% | 3.54% | 3.03% | 2.26% | 3.39% |
Frequently Asked Questions
BND and XLE have a correlation of -0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLE has higher volatility (7.26%) compared to BND (1.28%). In terms of maximum drawdown, BND dropped -18.58% vs XLE's -71.26%.
On 10-year performance, XLE leads with 9.91% vs 1.58% for BND. On fees, BND is cheaper at 0.03% per year. On volatility, BND has been the lower-risk option at 1.28%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, XLE has performed better with a 9.91% return vs 1.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
BND is cheaper with a 0.03% expense ratio, compared with 0.08% for XLE.
BND has the higher dividend yield at 3.96%, compared with 2.59% for XLE.
BND is categorized as Total Bond Market, while XLE is Energy Equities. BND tracks Bloomberg U.S. Aggregate Float Adjusted Index, while XLE tracks Energy Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.03% for BND and 0.08% for XLE.
XLE currently has the higher Sharpe Ratio (1.82 vs 1.18), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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