IHDG vs. XLE

Last updated Jun 13, 2026

IHDG (WisdomTree International Hedged Dividend Growth Fund) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - IHDG is a Foreign Large Cap Equities fund tracking the WisdomTree International Hedged Dividend Growth Index, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, IHDG returned 10.80%/yr vs 9.91%/yr for XLE. At a 0.38 correlation, their price movements are largely independent. IHDG charges 0.58%/yr vs 0.08%/yr for XLE.

Performance

IHDG vs. XLE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree International Hedged Dividend Growth Fund (IHDG) and State Street Energy Select Sector SPDR ETF (XLE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, IHDG achieves a 7.08% return, which is significantly lower than XLE's 29.56% return. Over the past 10 years, IHDG has outperformed XLE with an annualized return of 10.80%, while XLE has yielded a comparatively lower 9.91% annualized return.

IHDG

• 1D: 0.48%
• 1M: 3.68%
• YTD: 7.08%
• 6M: 8.20%
• 1Y: 16.03%
• 3Y*: 10.87%
• 5Y*: 7.72%
• 10Y*: 10.80%

XLE

• 1D: 0.75%
• 1M: -0.14%
• YTD: 29.56%
• 6M: 28.37%
• 1Y: 37.19%
• 3Y*: 16.18%
• 5Y*: 20.12%
• 10Y*: 9.91%

*Multi-year figures are annualized to reflect compound growth (CAGR)

IHDG vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IHDG WisdomTree International Hedged Dividend Growth Fund	7.08%	14.17%	5.97%	20.00%	-11.53%	19.75%	10.51%	33.42%	-12.03%	21.93%
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 IHDG and XLE is -0.07, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.07
Correlation (3Y) Calculated over the trailing 3-year period	0.14
Correlation (5Y) Calculated over the trailing 5-year period	0.24
Correlation (10Y) Calculated over the trailing 10-year period	0.35
Correlation (All Time) Calculated using the full available price history since May 7, 2014	0.38

The correlation between IHDG and XLE shifts across timeframes, from -0.07 (1 year) to 0.38 (all time), reflecting how their relationship changes across market environments.

IHDG vs. XLE - Sectors Allocation Comparison

Sectors	IHDG	XLE
Industrials	19.7%	-
Consumer Cyclical	19.3%	-
Financial Services	15.2%	-
Healthcare	9.4%	-
Technology	7.8%	-
Basic Materials	5.4%	-
Communication Services	4.5%	-
Consumer Defensive	4.3%	-
Energy	3.7%	100.0%
Utilities	0.8%	-
Real Estate	0.3%	-

Return for Risk

IHDG vs. XLE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

IHDG

IHDG Risk / Return Rank: 36
IHDG Sharpe Ratio Rank: 36
IHDG Sortino Ratio Rank: 36
IHDG Omega Ratio Rank: 35
IHDG Calmar Ratio Rank: 35
IHDG Martin Ratio Rank: 40

XLE

XLE Risk / Return Rank: 61
XLE Sharpe Ratio Rank: 64
XLE Sortino Ratio Rank: 58
XLE Omega Ratio Rank: 54
XLE Calmar Ratio Rank: 71
XLE Martin Ratio Rank: 56

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.

IHDG vs. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree International Hedged Dividend Growth Fund (IHDG) 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.

	IHDG	XLE	Difference
Sharpe ratio: Return per unit of total volatility	1.15	1.82	-0.67
Sortino ratio: Return per unit of downside risk	1.70	2.40	-0.70
Omega ratio: Gain probability vs. loss probability	1.21	1.30	-0.08
Calmar ratio: Return relative to maximum drawdown	1.53	3.10	-1.57
Martin ratio: Return relative to average drawdown	5.68	8.63	-2.96

IHDG vs. XLE - Sharpe Ratio Comparison

The current IHDG Sharpe Ratio is 1.15, which is lower than the XLE Sharpe Ratio of 1.82. The chart below compares the historical Sharpe Ratios of IHDG and XLE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

IHDG vs. XLE - Drawdown Comparison

The maximum IHDG drawdown since its inception was -29.24%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for IHDG and XLE.

Drawdown Indicators

	IHDG	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-29.24%	-71.26%	+42.02%
Max Drawdown (1Y) Largest decline over 1 year	-10.49%	-12.05%	+1.56%
Max Drawdown (3Y) Largest decline over 3 years	-18.88%	-20.14%	+1.26%
Max Drawdown (5Y) Largest decline over 5 years	-19.52%	-26.04%	+6.52%
Max Drawdown (10Y) Largest decline over 10 years	-29.24%	-66.81%	+37.57%
Current Drawdown Current decline from peak	0.00%	-8.01%	+8.01%
Average Drawdown Average peak-to-trough decline	-4.03%	-17.97%	+13.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.84%	4.32%	-1.48%

Volatility

IHDG vs. XLE - Volatility Comparison

The current volatility for WisdomTree International Hedged Dividend Growth Fund (IHDG) is 4.87%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 7.26%. This indicates that IHDG 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.

Volatility by Period

	IHDG	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.87%	7.26%	-2.39%
Volatility (6M) Calculated over the trailing 6-month period	11.77%	16.79%	-5.02%
Volatility (1Y) Calculated over the trailing 1-year period	14.04%	20.57%	-6.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.91%	26.05%	-11.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	15.78%	29.58%	-13.80%

IHDG vs. XLE - Expense Ratio Comparison

IHDG has a 0.58% expense ratio, which is higher than XLE's 0.08% expense ratio.

Dividends

IHDG vs. XLE - Dividend Comparison

IHDG's dividend yield for the trailing twelve months is around 1.79%, less than XLE's 2.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IHDG WisdomTree International Hedged Dividend Growth Fund	1.79%	1.84%	2.42%	1.70%	13.79%	2.77%	1.94%	1.99%	0.22%	1.28%	1.91%	3.04%
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

Can I hold both IHDG and XLE in my portfolio?

IHDG and XLE have a correlation of -0.07, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IHDG or XLE?

XLE has higher volatility (7.26%) compared to IHDG (4.87%). In terms of maximum drawdown, IHDG dropped -29.24% vs XLE's -71.26%.

Which ETF is better, IHDG or XLE?

On 10-year performance, IHDG leads with 10.80% vs 9.91% for XLE. On fees, XLE is cheaper at 0.08% per year. On volatility, IHDG has been the lower-risk option at 4.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IHDG or XLE?

Over the 10-year period, IHDG has performed better with a 10.80% return vs 9.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IHDG or XLE?

XLE is cheaper with a 0.08% expense ratio, compared with 0.58% for IHDG.

Which ETF pays a higher dividend yield, IHDG or XLE?

XLE has the higher dividend yield at 2.59%, compared with 1.79% for IHDG.

What is the main difference between IHDG and XLE?

IHDG is categorized as Foreign Large Cap Equities, while XLE is Energy Equities. IHDG tracks WisdomTree International Hedged Dividend Growth Index, while XLE tracks Energy Select Sector Index. They also come from different issuers: WisdomTree and State Street. Their fees differ too: 0.58% for IHDG and 0.08% for XLE.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (1.82 vs 1.15), 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.