MXI vs. VDE

Last updated Jun 24, 2026

MXI (iShares Global Materials ETF) and VDE (Vanguard Energy ETF) are both exchange-traded funds - MXI is a Materials fund tracking the S&P Global Materials Index, while VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index. Both are passively managed. Over the past 10 years, MXI returned 11.38%/yr vs 8.90%/yr for VDE. A 0.67 correlation means they provide meaningful diversification when combined. MXI charges 0.46%/yr vs 0.09%/yr for VDE.

Performance

MXI vs. VDE - Performance Comparison

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

Returns By Period

In the year-to-date period, MXI achieves a 11.62% return, which is significantly lower than VDE's 23.55% return. Over the past 10 years, MXI has outperformed VDE with an annualized return of 11.38%, while VDE has yielded a comparatively lower 8.90% annualized return.

MXI

• 1D: -2.55%
• 1M: -2.16%
• YTD: 11.62%
• 6M: 10.06%
• 1Y: 29.81%
• 3Y*: 13.19%
• 5Y*: 6.60%
• 10Y*: 11.38%

VDE

• 1D: 0.60%
• 1M: -7.94%
• YTD: 23.55%
• 6M: 24.06%
• 1Y: 31.01%
• 3Y*: 16.13%
• 5Y*: 18.74%
• 10Y*: 8.90%

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

MXI vs. VDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MXI iShares Global Materials ETF	11.62%	27.43%	-8.25%	14.37%	-9.09%	15.06%	22.31%	22.19%	-16.06%	30.33%
VDE Vanguard Energy ETF	23.55%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%

Correlation

The correlation between MXI and VDE 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	0.28
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Sep 22, 2006	0.67

Over the past year, the correlation between MXI and VDE has dropped to 0.07 - well below their long-term average of 0.67, suggesting their price drivers have been diverging.

MXI vs. VDE - Sectors Allocation Comparison

Sectors	MXI	VDE
Basic Materials	95.2%	0.4%
Consumer Cyclical	4.4%	-
Consumer Defensive	0.6%	-
Industrials	0.5%	0.1%
Communication Services	-	-
Energy	-	99.5%
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

MXI vs. VDE — Risk / Return Rank

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

MXI

MXI Risk / Return Rank: 41
MXI Sharpe Ratio Rank: 43
MXI Sortino Ratio Rank: 39
MXI Omega Ratio Rank: 41
MXI Calmar Ratio Rank: 39
MXI Martin Ratio Rank: 45

VDE

VDE Risk / Return Rank: 43
VDE Sharpe Ratio Rank: 45
VDE Sortino Ratio Rank: 41
VDE Omega Ratio Rank: 40
VDE Calmar Ratio Rank: 45
VDE Martin Ratio Rank: 43

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.

MXI vs. VDE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Materials ETF (MXI) 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.

	MXI	VDE	Difference
Sharpe ratio: Return per unit of total volatility	1.45	1.51	-0.06
Sortino ratio: Return per unit of downside risk	1.94	2.04	-0.10
Omega ratio: Gain probability vs. loss probability	1.26	1.25	+0.01
Calmar ratio: Return relative to maximum drawdown	1.85	2.19	-0.34
Martin ratio: Return relative to average drawdown	7.13	6.75	+0.38

MXI vs. VDE - Sharpe Ratio Comparison

The current MXI Sharpe Ratio is 1.45, which is comparable to the VDE Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of MXI 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

MXI vs. VDE - Drawdown Comparison

The maximum MXI drawdown since its inception was -68.44%, smaller than the maximum VDE drawdown of -74.20%. Use the drawdown chart below to compare losses from any high point for MXI and VDE.

Drawdown Indicators

	MXI	VDE	Difference
Max Drawdown Largest peak-to-trough decline	-68.44%	-74.20%	+5.76%
Max Drawdown (1Y) Largest decline over 1 year	-16.18%	-14.20%	-1.98%
Max Drawdown (3Y) Largest decline over 3 years	-22.25%	-21.41%	-0.84%
Max Drawdown (5Y) Largest decline over 5 years	-28.76%	-26.58%	-2.18%
Max Drawdown (10Y) Largest decline over 10 years	-39.52%	-69.29%	+29.77%
Current Drawdown Current decline from peak	-7.43%	-12.59%	+5.16%
Average Drawdown Average peak-to-trough decline	-18.03%	-19.94%	+1.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.19%	4.61%	-0.42%

Volatility

MXI vs. VDE - Volatility Comparison

iShares Global Materials ETF (MXI) has a higher volatility of 8.08% compared to Vanguard Energy ETF (VDE) at 7.06%. This indicates that MXI'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.

Volatility by Period

	MXI	VDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.08%	7.06%	+1.02%
Volatility (6M) Calculated over the trailing 6-month period	17.94%	16.61%	+1.33%
Volatility (1Y) Calculated over the trailing 1-year period	20.66%	20.80%	-0.14%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.86%	26.37%	-6.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.42%	29.94%	-9.52%

MXI vs. VDE - Expense Ratio Comparison

MXI has a 0.46% expense ratio, which is higher than VDE's 0.09% expense ratio.

Dividends

MXI vs. VDE - Dividend Comparison

MXI's dividend yield for the trailing twelve months is around 1.72%, less than VDE's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MXI iShares Global Materials ETF	1.72%	2.22%	3.24%	2.92%	4.84%	3.51%	1.21%	3.64%	2.77%	1.76%	1.31%	3.64%
VDE Vanguard Energy ETF	2.54%	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 MXI and VDE in my portfolio?

MXI and VDE 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, MXI or VDE?

MXI has higher volatility (8.08%) compared to VDE (7.06%). In terms of maximum drawdown, MXI dropped -68.44% vs VDE's -74.20%.

Which ETF is better, MXI or VDE?

On 10-year performance, MXI leads with 11.38% vs 8.90% for VDE. On fees, VDE is cheaper at 0.09% per year. On volatility, VDE has been the lower-risk option at 7.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MXI or VDE?

Over the 10-year period, MXI has performed better with a 11.38% return vs 8.90%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MXI or VDE?

VDE is cheaper with a 0.09% expense ratio, compared with 0.46% for MXI.

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

VDE has the higher dividend yield at 2.54%, compared with 1.72% for MXI.

What is the main difference between MXI and VDE?

MXI is categorized as Materials, while VDE is Energy Equities. MXI tracks S&P Global Materials 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: 0.46% for MXI and 0.09% for VDE.

Which has better risk-adjusted returns?

VDE currently has the higher Sharpe Ratio (1.51 vs 1.45), 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.