VDE vs. ERX

Last updated Aug 5, 2026

VDE (Vanguard Energy ETF) and ERX (Direxion Daily Energy Bull 2X Shares) are both Energy Equities funds - VDE tracks the MSCI US Investable Market Energy 25/50 Index while ERX tracks the Energy Select Sector Index (200%). Both are passively managed. Over the past 10 years, VDE returned 9.60%/yr vs -9.16%/yr for ERX. Their 0.99 correlation means they have historically moved very closely together. VDE charges 0.09%/yr vs 0.91%/yr for ERX.

Performance

VDE vs. ERX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Energy ETF (VDE) and Direxion Daily Energy Bull 2X Shares (ERX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDE achieves a 32.88% return, which is significantly lower than ERX's 64.87% return. Over the past 10 years, VDE has outperformed ERX with an annualized return of 9.60%, while ERX has yielded a comparatively lower -9.16% annualized return.

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%

ERX

• 1D: -1.02%
• 1M: 19.48%
• 6M: 24.53%
• YTD: 64.87%
• 1Y: 80.43%
• 3Y*: 16.45%
• 5Y*: 35.08%
• 10Y*: -9.16%
• ALL TIME*: -7.18%

*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)
ERX Direxion Daily Energy Bull 2X Shares	$21.67M	$22.94M	$27.89M
VDE Vanguard Energy ETF	$78.09M	$74.66M	$108.47M

VDE vs. ERX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDE Vanguard Energy ETF	32.88%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%
ERX Direxion Daily Energy Bull 2X Shares	64.87%	2.79%	1.09%	-12.26%	130.58%	111.91%	-91.60%	17.13%	-55.94%	-11.60%

Correlation

The correlation between VDE and ERX is 0.99 - 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.	0.99
Correlation (3Y) Balances recent behavior with more history.	0.99
Correlation (5Y) Shows whether the relationship held over a longer period.	1.00
Correlation (10Y) Provides a long-term view across more market conditions.	0.99
Correlation (All Time) Calculated using the full available price history since Nov 19, 2008	0.99

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

VDE vs. ERX - Sectors Allocation Comparison

Sectors	VDE	ERX
Energy	76.9%	100.0%
Basic Materials	0.4%	-
Industrials	0.3%	-
Utilities	0.1%	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-

Return for Risk

VDE vs. ERX — Risk / Return Rank

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

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

ERX

ERX Risk / Return Rank: 64
ERX Sharpe Ratio Rank: 75
ERX Sortino Ratio Rank: 62
ERX Omega Ratio Rank: 59
ERX Calmar Ratio Rank: 69
ERX Martin Ratio Rank: 53

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.

VDE vs. ERX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and Direxion Daily Energy Bull 2X Shares (ERX). 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.

	VDE	ERX	Difference
Sharpe ratio: Return per unit of total volatility	2.01	1.92	+0.09
Sortino ratio: Return per unit of downside risk	2.59	2.35	+0.25
Omega ratio: Gain probability vs. loss probability	1.32	1.29	+0.03
Calmar ratio: Return relative to maximum drawdown	2.79	2.70	+0.09
Martin ratio: Return relative to average drawdown	7.50	6.81	+0.68

VDE vs. ERX - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 2.01, which is comparable to the ERX Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of VDE and ERX, 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

VDE vs. ERX - Drawdown Comparison

The maximum VDE drawdown since its inception was -74.20%, smaller than the maximum ERX drawdown of -99.54%. Use the drawdown chart below to compare losses from any high point for VDE and ERX.

Drawdown Indicators

	VDE	ERX	Difference
Max Drawdown Largest peak-to-trough decline	-74.20%	-99.54%	+25.34%
Max Drawdown (1Y) Largest decline over 1 year	-15.04%	-29.97%	+14.93%
Max Drawdown (3Y) Largest decline over 3 years	-21.41%	-42.34%	+20.93%
Max Drawdown (5Y) Largest decline over 5 years	-26.58%	-46.90%	+20.32%
Max Drawdown (10Y) Largest decline over 10 years	-69.29%	-98.59%	+29.30%
Current Drawdown Current decline from peak	-5.98%	-91.68%	+85.70%
Average Drawdown Average peak-to-trough decline	-19.88%	-67.25%	+47.37%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.59%	11.84%	-6.25%

Volatility

VDE vs. ERX - Volatility Comparison

The current volatility for Vanguard Energy ETF (VDE) is 6.28%, while Direxion Daily Energy Bull 2X Shares (ERX) has a volatility of 12.50%. This indicates that VDE experiences smaller price fluctuations and is considered to be less risky than ERX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDE	ERX	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.28%	12.50%	-6.22%
Volatility (6M) Calculated over the trailing 6-month period	16.59%	33.60%	-17.01%
Volatility (1Y) Calculated over the trailing 1-year period	20.89%	42.22%	-21.33%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.11%	51.44%	-25.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.91%	68.84%	-38.93%

VDE vs. ERX - Expense Ratio Comparison

VDE has a 0.09% expense ratio, which is lower than ERX's 0.91% expense ratio.

Dividends

VDE vs. ERX - Dividend Comparison

VDE's dividend yield for the trailing twelve months is around 2.44%, more than ERX's 1.55% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ERX Direxion Daily Energy Bull 2X Shares	1.55%	2.54%	2.94%	3.17%	2.23%	2.16%	2.35%	1.56%	3.10%	0.85%	0.00%	0.00%
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 VDE and ERX in my portfolio?

With a correlation of 0.99, VDE and ERX 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, VDE or ERX?

ERX has higher volatility (12.50%) compared to VDE (6.28%). In terms of maximum drawdown, VDE dropped -74.20% vs ERX's -99.54%.

Which ETF is better, VDE or ERX?

On 10-year performance, VDE leads with 9.60% vs -9.16% for ERX. On fees, VDE is cheaper at 0.09% per year. On volatility, VDE has been the lower-risk option at 6.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDE or ERX?

Over the 10-year period, VDE has performed better with a 9.60% return vs -9.16%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDE or ERX?

VDE is cheaper with a 0.09% expense ratio, compared with 0.91% for ERX.

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

VDE has the higher dividend yield at 2.44%, compared with 1.55% for ERX.

What is the main difference between VDE and ERX?

VDE tracks MSCI US Investable Market Energy 25/50 Index, while ERX tracks Energy Select Sector Index (200%). They also come from different issuers: Vanguard and Direxion. Their fees differ too: 0.09% for VDE and 0.91% for ERX.

Which has better risk-adjusted returns?

VDE currently has the higher Sharpe Ratio (2.01 vs 1.92), 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.