USAI vs. VDE

Last updated Jun 5, 2026

USAI (Pacer American Energy Independence ETF) and VDE (Vanguard Energy ETF) are both Energy Equities funds - USAI tracks the American Energy Independence Index while VDE tracks the MSCI US Investable Market Energy 25/50 Index. Both are passively managed. Over the past 5 years, USAI returned 18.67%/yr vs 20.47%/yr for VDE. A 0.78 correlation means they provide meaningful diversification when combined. USAI charges 0.75%/yr vs 0.09%/yr for VDE.

Performance

USAI vs. VDE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Pacer American Energy Independence ETF (USAI) 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, USAI achieves a 23.98% return, which is significantly lower than VDE's 32.48% return.

USAI

• 1D: 1.47%
• 1M: -1.05%
• YTD: 23.98%
• 6M: 21.70%
• 1Y: 22.36%
• 3Y*: 26.68%
• 5Y*: 18.67%
• 10Y*: —

VDE

• 1D: 0.18%
• 1M: -1.99%
• YTD: 32.48%
• 6M: 28.99%
• 1Y: 48.54%
• 3Y*: 18.32%
• 5Y*: 20.47%
• 10Y*: 9.47%

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

USAI vs. VDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
USAI Pacer American Energy Independence ETF	23.98%	0.69%	43.99%	14.21%	19.82%	37.10%	-15.10%	21.63%	-17.31%	3.69%
VDE Vanguard Energy ETF	32.48%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	4.86%

Correlation

The correlation between USAI and VDE is 0.67, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.67
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.79
Correlation (All Time) Calculated using the full available price history since Dec 14, 2017	0.78

The correlation between USAI and VDE shifts across timeframes, from 0.67 (1 year) to 0.79 (5 years), reflecting how their relationship changes across market environments.

USAI vs. VDE - Sectors Allocation Comparison

Sectors	USAI	VDE
Energy	97.8%	99.5%
Utilities	2.1%	-
Basic Materials	-	0.4%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	0.1%
Real Estate	-	-
Technology	-	-

Return for Risk

USAI vs. VDE — Risk / Return Rank

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

USAI

USAI Risk / Return Rank: 41
USAI Sharpe Ratio Rank: 41
USAI Sortino Ratio Rank: 39
USAI Omega Ratio Rank: 38
USAI Calmar Ratio Rank: 51
USAI Martin Ratio Rank: 37

VDE

VDE Risk / Return Rank: 71
VDE Sharpe Ratio Rank: 75
VDE Sortino Ratio Rank: 68
VDE Omega Ratio Rank: 65
VDE Calmar Ratio Rank: 81
VDE Martin Ratio Rank: 67

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.

USAI vs. VDE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Pacer American Energy Independence ETF (USAI) 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.

	USAI	VDE	Difference
Sharpe ratio: Return per unit of total volatility	1.43	2.41	-0.98
Sortino ratio: Return per unit of downside risk	1.96	3.06	-1.09
Omega ratio: Gain probability vs. loss probability	1.24	1.39	-0.14
Calmar ratio: Return relative to maximum drawdown	2.49	4.13	-1.64
Martin ratio: Return relative to average drawdown	5.62	12.11	-6.50
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

USAI vs. VDE - Sharpe Ratio Comparison

The current USAI Sharpe Ratio is 1.43, which is lower than the VDE Sharpe Ratio of 2.41. The chart below compares the historical Sharpe Ratios of USAI 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.

Sharpe Ratios by Period

	USAI	VDE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.43	2.41	-0.98
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.91	0.78	+0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.32	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.28	+0.23

Drawdowns

USAI vs. VDE - Drawdown Comparison

The maximum USAI drawdown since its inception was -65.25%, smaller than the maximum VDE drawdown of -74.20%. Use the drawdown chart below to compare losses from any high point for USAI and VDE.

Drawdown Indicators

	USAI	VDE	Difference
Max Drawdown Largest peak-to-trough decline	-65.25%	-74.20%	+8.95%
Max Drawdown (1Y) Largest decline over 1 year	-9.01%	-11.80%	+2.79%
Max Drawdown (3Y) Largest decline over 3 years	-18.22%	-21.41%	+3.19%
Max Drawdown (5Y) Largest decline over 5 years	-20.68%	-26.58%	+5.90%
Max Drawdown (10Y) Largest decline over 10 years	—	-69.29%	—
Current Drawdown Current decline from peak	-4.60%	-6.27%	+1.67%
Average Drawdown Average peak-to-trough decline	-9.36%	-19.96%	+10.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.99%	4.02%	-0.03%

Volatility

USAI vs. VDE - Volatility Comparison

The current volatility for Pacer American Energy Independence ETF (USAI) is 6.69%, while Vanguard Energy ETF (VDE) has a volatility of 7.99%. This indicates that USAI 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

	USAI	VDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.69%	7.99%	-1.30%
Volatility (6M) Calculated over the trailing 6-month period	12.27%	16.27%	-4.00%
Volatility (1Y) Calculated over the trailing 1-year period	15.81%	20.34%	-4.53%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.56%	26.40%	-5.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.31%	29.93%	-2.62%

USAI vs. VDE - Expense Ratio Comparison

USAI has a 0.75% expense ratio, which is higher than VDE's 0.09% expense ratio.

Dividends

USAI vs. VDE - Dividend Comparison

USAI's dividend yield for the trailing twelve months is around 4.13%, more than VDE's 2.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
USAI Pacer American Energy Independence ETF	4.13%	5.03%	3.62%	4.99%	5.41%	6.15%	7.67%	6.50%	5.56%	0.08%	0.00%	0.00%
VDE Vanguard Energy ETF	2.37%	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 USAI and VDE in my portfolio?

USAI and VDE have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, USAI or VDE?

VDE has higher volatility (7.99%) compared to USAI (6.69%). In terms of maximum drawdown, USAI dropped -65.25% vs VDE's -74.20%.

Which ETF is better, USAI or VDE?

On 5-year performance, VDE leads with 20.47% vs 18.67% for USAI. On fees, VDE is cheaper at 0.09% per year. On volatility, USAI has been the lower-risk option at 6.69%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, USAI or VDE?

Over the 5-year period, VDE has performed better with a 20.47% return vs 18.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, USAI or VDE?

VDE is cheaper with a 0.09% expense ratio, compared with 0.75% for USAI.

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

USAI has the higher dividend yield at 4.13%, compared with 2.37% for VDE.

What is the main difference between USAI and VDE?

USAI tracks American Energy Independence Index, while VDE tracks MSCI US Investable Market Energy 25/50 Index. They also come from different issuers: Pacer and Vanguard. Their fees differ too: 0.75% for USAI and 0.09% for VDE.

Which has better risk-adjusted returns?

VDE currently has the higher Sharpe Ratio (2.41 vs 1.43), 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.