VDE vs. IEO
Compare and contrast key facts about Vanguard Energy ETF (VDE) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO).
VDE and IEO are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VDE is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Energy 25/50 Index. It was launched on Sep 23, 2004. IEO is a passively managed fund by iShares that tracks the performance of the Dow Jones U.S. Select Oil Exploration & Production Index. It was launched on May 5, 2006. Both VDE and IEO are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VDE or IEO.
Key characteristics
| VDE | IEO | |
|---|---|---|
| YTD Return | 14.02% | 12.73% |
| 1Y Return | 25.47% | 30.71% |
| 3Y Return (Ann) | 26.14% | 28.63% |
| 5Y Return (Ann) | 13.67% | 16.34% |
| 10Y Return (Ann) | 3.44% | 3.80% |
| Sharpe Ratio | 1.43 | 1.56 |
| Daily Std Dev | 18.49% | 20.67% |
| Max Drawdown | -74.16% | -79.17% |
| Current Drawdown | -2.90% | -6.68% |
Correlation
The correlation between VDE and IEO is 0.96, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VDE vs. IEO - Performance Comparison
In the year-to-date period, VDE achieves a 14.02% return, which is significantly higher than IEO's 12.73% return. Over the past 10 years, VDE has underperformed IEO with an annualized return of 3.44%, while IEO has yielded a comparatively higher 3.80% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VDE vs. IEO - Expense Ratio Comparison
VDE has a 0.10% expense ratio, which is lower than IEO's 0.42% expense ratio.
Risk-Adjusted Performance
VDE vs. IEO - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO). 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.
Dividends
VDE vs. IEO - Dividend Comparison
VDE's dividend yield for the trailing twelve months is around 2.91%, more than IEO's 2.50% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDE Vanguard Energy ETF | 2.91% | 3.34% | 3.65% | 4.13% | 4.76% | 3.59% | 3.35% | 2.90% | 2.31% | 3.17% | 1.98% | 1.74% |
IEO iShares U.S. Oil & Gas Exploration & Production ETF | 2.50% | 3.00% | 3.77% | 2.62% | 3.17% | 1.85% | 1.67% | 0.94% | 0.98% | 2.03% | 1.30% | 0.88% |
Drawdowns
VDE vs. IEO - Drawdown Comparison
The maximum VDE drawdown since its inception was -74.16%, smaller than the maximum IEO drawdown of -79.17%. Use the drawdown chart below to compare losses from any high point for VDE and IEO. For additional features, visit the drawdowns tool.
Volatility
VDE vs. IEO - Volatility Comparison
The current volatility for Vanguard Energy ETF (VDE) is 4.74%, while iShares U.S. Oil & Gas Exploration & Production ETF (IEO) has a volatility of 5.78%. This indicates that VDE experiences smaller price fluctuations and is considered to be less risky than IEO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.