IYE vs. VDE

Last updated Aug 5, 2026

IYE (iShares U.S. Energy ETF) and VDE (Vanguard Energy ETF) are both Energy Equities funds - IYE tracks the Dow Jones U.S. Oil & Gas Index while VDE tracks the MSCI US Investable Market Energy 25/50 Index. Both are passively managed. Over the past 10 years, IYE returned 8.89%/yr vs 9.60%/yr for VDE. Their 0.99 correlation means they have historically moved very closely together. IYE charges 0.42%/yr vs 0.09%/yr for VDE.

Performance

IYE vs. VDE - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with IYE having a 32.30% return and VDE slightly higher at 32.88%. Over the past 10 years, IYE has underperformed VDE with an annualized return of 8.89%, while VDE has yielded a comparatively higher 9.60% annualized return.

IYE

• 1D: -0.35%
• 1M: 9.69%
• 6M: 15.13%
• YTD: 32.30%
• 1Y: 40.36%
• 3Y*: 13.73%
• 5Y*: 22.20%
• 10Y*: 8.89%
• ALL TIME*: 7.45%

VDE

• 1D: -0.37%
• 1M: 9.84%
• 6M: 15.00%
• YTD: 32.88%
• 1Y: 41.79%
• 3Y*: 14.18%
• 5Y*: 23.47%
• 10Y*: 9.60%
• ALL TIME*: 8.25%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
IYE iShares U.S. Energy ETF	$45.57M	$48.49M	$74.82M
VDE Vanguard Energy ETF	$78.09M	$74.66M	$108.47M

IYE vs. VDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYE iShares U.S. Energy ETF	32.30%	7.33%	6.06%	-2.21%	60.21%	53.42%	-33.49%	10.03%	-19.37%	-1.80%
VDE Vanguard Energy ETF	32.88%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%

Correlation

The correlation between IYE and VDE is 1.00 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	1.00
Correlation (3Y) Balances recent behavior with more history.	1.00
Correlation (5Y) Shows whether the relationship held over a longer period.	1.00
Correlation (10Y) Provides a long-term view across more market conditions.	1.00
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004	0.99

The correlation between IYE and VDE has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

IYE vs. VDE - Sectors Allocation Comparison

Sectors	IYE	VDE
Energy	98.3%	76.9%
Technology	1.5%	-
Financial Services	0.0%	-
Industrials	0.0%	0.3%
Basic Materials	-	0.4%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Healthcare	-	-
Real Estate	-	-
Utilities	-	0.1%

Return for Risk

IYE vs. VDE — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

IYE

IYE Risk / Return Rank: 68
IYE Sharpe Ratio Rank: 78
IYE Sortino Ratio Rank: 70
IYE Omega Ratio Rank: 67
IYE Calmar Ratio Rank: 71
IYE Martin Ratio Rank: 56

VDE

VDE Risk / Return Rank: 70
VDE Sharpe Ratio Rank: 79
VDE Sortino Ratio Rank: 72
VDE Omega Ratio Rank: 69
VDE Calmar Ratio Rank: 72
VDE Martin Ratio Rank: 57

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

IYE vs. VDE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Energy ETF (IYE) 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.

	IYE	VDE	Difference
Sharpe ratio: Return per unit of total volatility	1.98	2.01	-0.03
Sortino ratio: Return per unit of downside risk	2.56	2.59	-0.03
Omega ratio: Gain probability vs. loss probability	1.32	1.32	0.00
Calmar ratio: Return relative to maximum drawdown	2.79	2.79	0.00
Martin ratio: Return relative to average drawdown	7.37	7.50	-0.13

IYE vs. VDE - Sharpe Ratio Comparison

The current IYE Sharpe Ratio is 1.98, which is comparable to the VDE Sharpe Ratio of 2.01. The chart below compares the historical Sharpe Ratios of IYE 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.

Drawdowns

IYE vs. VDE - Drawdown Comparison

The maximum IYE drawdown since its inception was -73.74%, roughly equal to the maximum VDE drawdown of -74.20%. Use the drawdown chart below to compare losses from any high point for IYE and VDE.

Drawdown Indicators

	IYE	VDE	Difference
Max Drawdown Largest peak-to-trough decline	-73.74%	-74.20%	+0.46%
Max Drawdown (1Y) Largest decline over 1 year	-14.54%	-15.04%	+0.50%
Max Drawdown (3Y) Largest decline over 3 years	-20.37%	-21.41%	+1.04%
Max Drawdown (5Y) Largest decline over 5 years	-25.61%	-26.58%	+0.97%
Max Drawdown (10Y) Largest decline over 10 years	-68.59%	-69.29%	+0.70%
Current Drawdown Current decline from peak	-5.49%	-5.98%	+0.49%
Average Drawdown Average peak-to-trough decline	-19.29%	-19.88%	+0.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.49%	5.59%	-0.10%

Volatility

IYE vs. VDE - Volatility Comparison

The current volatility for iShares U.S. Energy ETF (IYE) is 5.96%, while Vanguard Energy ETF (VDE) has a volatility of 6.28%. This indicates that IYE experiences smaller price fluctuations and is considered to be less risky than VDE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IYE	VDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.96%	6.28%	-0.32%
Volatility (6M) Calculated over the trailing 6-month period	16.23%	16.59%	-0.36%
Volatility (1Y) Calculated over the trailing 1-year period	20.46%	20.89%	-0.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.41%	26.11%	-0.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.49%	29.91%	-0.42%

IYE vs. VDE - Expense Ratio Comparison

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

Dividends

IYE vs. VDE - Dividend Comparison

IYE's dividend yield for the trailing twelve months is around 2.15%, less than VDE's 2.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYE iShares U.S. Energy ETF	2.15%	2.85%	2.75%	2.99%	3.37%	2.98%	4.75%	6.60%	3.16%	2.66%	2.11%	3.39%
VDE Vanguard Energy ETF	2.44%	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

Can I hold both IYE and VDE in my portfolio?

With a correlation of 1.00, IYE 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.

Which is riskier, IYE or VDE?

VDE has higher volatility (6.28%) compared to IYE (5.96%). In terms of maximum drawdown, IYE dropped -73.74% vs VDE's -74.20%.

Which ETF is better, IYE or VDE?

On 10-year performance, VDE leads with 9.60% vs 8.89% for IYE. On fees, VDE is cheaper at 0.09% per year. On volatility, IYE has been the lower-risk option at 5.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYE or VDE?

Over the 10-year period, VDE has performed better with a 9.60% return vs 8.89%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYE or VDE?

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

Which ETF pays a higher dividend yield, IYE or VDE?

VDE has the higher dividend yield at 2.44%, compared with 2.15% for IYE.

What is the main difference between IYE and VDE?

IYE tracks Dow Jones U.S. Oil & Gas 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 IYE and 0.09% for VDE.

Which has better risk-adjusted returns?

VDE currently has the higher Sharpe Ratio (2.01 vs 1.98), 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.