PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
IEO vs. VDE
Performance
Return for Risk
Drawdowns
Volatility
Dividends

IEO vs. VDE

Last updated Jun 23, 2026

IEO (iShares U.S. Oil & Gas Exploration & Production ETF) and VDE (Vanguard Energy ETF) are both Energy Equities funds - IEO tracks the Dow Jones U.S. Select Oil Exploration & Production Index while VDE tracks the MSCI US Investable Market Energy 25/50 Index. Both are passively managed. Over the past 10 years, IEO returned 9.65%/yr vs 8.84%/yr for VDE. With a 0.96 correlation, they move nearly in lockstep. IEO charges 0.42%/yr vs 0.09%/yr for VDE.

Performance

IEO vs. VDE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Oil & Gas Exploration & Production ETF (IEO) and Vanguard Energy ETF (VDE). The values are adjusted to include any dividend payments, if applicable.

Loading charts...

Returns By Period

The year-to-date returns for both stocks are quite close, with IEO having a 23.98% return and VDE slightly lower at 22.80%. Over the past 10 years, IEO has outperformed VDE with an annualized return of 9.65%, while VDE has yielded a comparatively lower 8.84% annualized return.

IEO

1D
2.04%
1M
-7.55%
YTD
23.98%
6M
24.56%
1Y
20.16%
3Y*
13.42%
5Y*
17.17%
10Y*
9.65%

VDE

1D
1.27%
1M
-8.49%
YTD
22.80%
6M
24.09%
1Y
26.80%
3Y*
15.90%
5Y*
18.82%
10Y*
8.84%
*Multi-year figures are annualized to reflect compound growth (CAGR)

IEO vs. VDE - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
IEO
iShares U.S. Oil & Gas Exploration & Production ETF		23.98%2.15%-1.45%3.57%57.82%75.57%-32.77%9.63%-19.44%0.33%
VDE
Vanguard Energy ETF		22.80%7.11%6.75%0.03%62.89%56.31%-33.02%9.28%-19.95%-2.50%

Correlation

The correlation between IEO and VDE is 0.95, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.95

Correlation (3Y)
Calculated over the trailing 3-year period

0.95

Correlation (5Y)
Calculated over the trailing 5-year period

0.97

Correlation (10Y)
Calculated over the trailing 10-year period

0.97

Correlation (All Time)
Calculated using the full available price history since May 5, 2006

0.96

The correlation between IEO and VDE has been stable across timeframes, ranging from 0.95 to 0.97 - a consistent structural relationship.

IEO vs. VDE - Sectors Allocation Comparison

Sectors
IEO
VDE

Energy

99.3%
99.5%

Basic Materials

0.7%
0.4%

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Financial Services

-

-

Healthcare

-

-

Industrials

-

0.1%

Real Estate

-

-

Technology

-

-

Utilities

-

-

Energy

IEO
99.3%
VDE
99.5%

Basic Materials

IEO
0.7%
VDE
0.4%

Communication Services

IEO

-

VDE

-

Consumer Cyclical

IEO

-

VDE

-

Consumer Defensive

IEO

-

VDE

-

Financial Services

IEO

-

VDE

-

Healthcare

IEO

-

VDE

-

Industrials

IEO

-

VDE
0.1%

Real Estate

IEO

-

VDE

-

Technology

IEO

-

VDE

-

Utilities

IEO

-

VDE

-

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares U.S. Oil & Gas Exploration & Production ETF

Vanguard Energy ETF

Often compared with IEO:
IEO vs. XLEIEO vs. FCGIEO vs. FENYIEO vs. DEOIEO vs. PCEFIEO vs. IEZIEO vs. CRAK
Often compared with VDE:
VDE vs. XLEVDE vs. IXCVDE vs. FENYVDE vs. VOOVDE vs. VGENXVDE vs. XOPVDE vs. VGT

Return for Risk

IEO vs. VDE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
IEO
IEO Risk / Return Rank: 2424
Overall Rank
IEO Sharpe Ratio Rank: 2323
Sharpe Ratio Rank
IEO Sortino Ratio Rank: 2222
Sortino Ratio Rank
IEO Omega Ratio Rank: 2121
Omega Ratio Rank
IEO Calmar Ratio Rank: 2626
Calmar Ratio Rank
IEO Martin Ratio Rank: 2727
Martin Ratio Rank
VDE
VDE Risk / Return Rank: 3636
Overall Rank
VDE Sharpe Ratio Rank: 3737
Sharpe Ratio Rank
VDE Sortino Ratio Rank: 3535
Sortino Ratio Rank
VDE Omega Ratio Rank: 3333
Omega Ratio Rank
VDE Calmar Ratio Rank: 3939
Calmar Ratio Rank
VDE Martin Ratio Rank: 3939
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

IEO vs. VDE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Oil & Gas Exploration & Production ETF (IEO) and Vanguard Energy ETF (VDE). 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.

IEOVDEDifference
Sharpe ratioReturn per unit of total volatility
0.79
1.29

-0.51

Sortino ratioReturn per unit of downside risk
1.18
1.78

-0.60

Omega ratioGain probability vs. loss probability

1.14

1.22

-0.07

Calmar ratioReturn relative to maximum drawdown

1.24

1.90

-0.65

Martin ratioReturn relative to average drawdown

3.49

5.92

-2.44

IEO vs. VDE - Sharpe Ratio Comparison

The current IEO Sharpe Ratio is 0.79, which is lower than the VDE Sharpe Ratio of 1.29. The chart below compares the historical Sharpe Ratios of IEO and VDE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Drawdowns

IEO vs. VDE - Drawdown Comparison

The maximum IEO drawdown since its inception was -79.17%, which is greater than VDE's maximum drawdown of -74.20%. Use the drawdown chart below to compare losses from any high point for IEO and VDE.

Loading charts...

Drawdown Indicators

IEOVDEDifference

Max Drawdown

Largest peak-to-trough decline

-79.17%

-74.20%

-4.97%

Max Drawdown (1Y)

Largest decline over 1 year

-16.32%

-14.20%

-2.12%

Max Drawdown (3Y)

Largest decline over 3 years

-31.46%

-21.41%

-10.05%

Max Drawdown (5Y)

Largest decline over 5 years

-31.46%

-26.58%

-4.88%

Max Drawdown (10Y)

Largest decline over 10 years

-75.00%

-69.29%

-5.71%

Current Drawdown

Current decline from peak

-14.61%

-13.11%

-1.50%

Average Drawdown

Average peak-to-trough decline

-26.23%

-19.94%

-6.29%

Ulcer Index

Depth and duration of drawdowns from previous peaks

5.88%

4.57%

+1.31%

Volatility

IEO vs. VDE - Volatility Comparison

iShares U.S. Oil & Gas Exploration & Production ETF (IEO) has a higher volatility of 8.79% compared to Vanguard Energy ETF (VDE) at 7.02%. This indicates that IEO's price experiences larger fluctuations and is considered to be riskier than VDE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

IEOVDEDifference

Volatility (1M)

Calculated over the trailing 1-month period

8.79%

7.02%

+1.77%

Volatility (6M)

Calculated over the trailing 6-month period

20.20%

16.69%

+3.51%

Volatility (1Y)

Calculated over the trailing 1-year period

25.71%

20.84%

+4.87%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

30.53%

26.37%

+4.16%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

35.02%

29.96%

+5.06%

IEO vs. VDE - Expense Ratio Comparison

IEO has a 0.42% expense ratio, which is higher than VDE's 0.09% expense ratio.

Dividends

IEO vs. VDE - Dividend Comparison

IEO's dividend yield for the trailing twelve months is around 2.13%, less than VDE's 2.56% yield.

PositionTTM20252024202320222021202020192018201720162015
IEO
iShares U.S. Oil & Gas Exploration & Production ETF		2.13%2.61%2.63%3.00%3.77%2.62%3.17%1.85%1.67%0.94%0.98%2.03%
VDE
Vanguard Energy ETF		2.56%3.11%3.23%3.34%3.65%4.13%4.76%3.42%3.35%2.90%2.31%3.17%

Frequently Asked Questions

With a correlation of 0.95, IEO and VDE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

IEO has higher volatility (8.79%) compared to VDE (7.02%). In terms of maximum drawdown, IEO dropped -79.17% vs VDE's -74.20%.

On 10-year performance, IEO leads with 9.65% vs 8.84% for VDE. On fees, VDE is cheaper at 0.09% per year. On volatility, VDE has been the lower-risk option at 7.02%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, IEO has performed better with a 9.65% return vs 8.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

VDE is cheaper with a 0.09% expense ratio, compared with 0.42% for IEO.

VDE has the higher dividend yield at 2.56%, compared with 2.13% for IEO.

IEO tracks Dow Jones U.S. Select Oil Exploration & Production Index, while VDE tracks MSCI US Investable Market Energy 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.42% for IEO and 0.09% for VDE.

VDE currently has the higher Sharpe Ratio (1.29 vs 0.79), 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.

Portfolio Optimizer

Find the right allocation for IEO and VDE

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer