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VDE vs. IYE
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VDE vs. IYE

Last updated Jun 5, 2026

VDE (Vanguard Energy ETF) and IYE (iShares U.S. Energy ETF) are both Energy Equities funds - VDE tracks the MSCI US Investable Market Energy 25/50 Index while IYE tracks the Dow Jones U.S. Oil & Gas Index. Both are passively managed. Over the past 10 years, VDE returned 9.47%/yr vs 8.76%/yr for IYE. With a 0.99 correlation, they move nearly in lockstep. VDE charges 0.09%/yr vs 0.42%/yr for IYE.

Performance

VDE vs. IYE - Performance Comparison

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

Loading charts...

Returns By Period

The year-to-date returns for both stocks are quite close, with VDE having a 32.48% return and IYE slightly lower at 31.95%. Over the past 10 years, VDE has outperformed IYE with an annualized return of 9.47%, while IYE has yielded a comparatively lower 8.76% annualized return.

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%

IYE

1D
0.03%
1M
-1.09%
YTD
31.95%
6M
28.91%
1Y
46.86%
3Y*
17.38%
5Y*
19.52%
10Y*
8.76%
*Multi-year figures are annualized to reflect compound growth (CAGR)

VDE vs. IYE - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
VDE
Vanguard Energy ETF		32.48%7.11%6.75%0.03%62.89%56.31%-33.02%9.28%-19.95%-2.50%
IYE
iShares U.S. Energy ETF		31.95%7.33%6.06%-2.21%60.21%53.42%-33.49%10.03%-19.37%-1.80%

Correlation

The correlation between VDE and IYE is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

1.00

Correlation (3Y)
Calculated over the trailing 3-year period

1.00

Correlation (5Y)
Calculated over the trailing 5-year period

1.00

Correlation (10Y)
Calculated over the trailing 10-year period

1.00

Correlation (All Time)
Calculated using the full available price history since Sep 30, 2004

0.99

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

VDE vs. IYE - Sectors Allocation Comparison

Sectors
VDE
IYE

Energy

99.5%
98.9%

Basic Materials

0.4%

-

Industrials

0.1%

-

Communication Services

-

-

Consumer Cyclical

-

-

Consumer Defensive

-

-

Financial Services

-

-

Healthcare

-

-

Real Estate

-

-

Technology

-

1.1%

Utilities

-

-

Energy

VDE
99.5%
IYE
98.9%

Basic Materials

VDE
0.4%
IYE

-

Industrials

VDE
0.1%
IYE

-

Communication Services

VDE

-

IYE

-

Consumer Cyclical

VDE

-

IYE

-

Consumer Defensive

VDE

-

IYE

-

Financial Services

VDE

-

IYE

-

Healthcare

VDE

-

IYE

-

Real Estate

VDE

-

IYE

-

Technology

VDE

-

IYE
1.1%

Utilities

VDE

-

IYE

-

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

Vanguard Energy ETF

iShares U.S. Energy ETF

Often compared with VDE:
VDE vs. XLEVDE vs. IXCVDE vs. FENYVDE vs. VOOVDE vs. VGENXVDE vs. XOPVDE vs. VGT
Often compared with IYE:
IYE vs. XLEIYE vs. IXCIYE vs. FENYIYE vs. OIHIYE vs. IYHIYE vs. XOPIYE vs. MLPX

Return for Risk

VDE vs. IYE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VDE
VDE Risk / Return Rank: 7171
Overall Rank
VDE Sharpe Ratio Rank: 7575
Sharpe Ratio Rank
VDE Sortino Ratio Rank: 6868
Sortino Ratio Rank
VDE Omega Ratio Rank: 6565
Omega Ratio Rank
VDE Calmar Ratio Rank: 8181
Calmar Ratio Rank
VDE Martin Ratio Rank: 6767
Martin Ratio Rank
IYE
IYE Risk / Return Rank: 6969
Overall Rank
IYE Sharpe Ratio Rank: 7373
Sharpe Ratio Rank
IYE Sortino Ratio Rank: 6767
Sortino Ratio Rank
IYE Omega Ratio Rank: 6464
Omega Ratio Rank
IYE Calmar Ratio Rank: 7878
Calmar Ratio Rank
IYE Martin Ratio Rank: 6565
Martin Ratio Rank
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.

VDE vs. IYE - Risk-Adjusted Trends Comparison

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

VDEIYEDifference
Sharpe ratioReturn per unit of total volatility
2.41
2.37

+0.04

Sortino ratioReturn per unit of downside risk
3.06
3.03

+0.03

Omega ratioGain probability vs. loss probability

1.39

1.38

0.00

Calmar ratioReturn relative to maximum drawdown

4.13

3.95

+0.18

Martin ratioReturn relative to average drawdown

12.11

11.64

+0.47

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VDE vs. IYE - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 2.41, which is comparable to the IYE Sharpe Ratio of 2.37. The chart below compares the historical Sharpe Ratios of VDE and IYE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

VDEIYEDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

2.41

2.37

+0.04

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

0.78

0.76

+0.02

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.32

0.30

+0.02

Sharpe Ratio (All Time)

Calculated using the full available price history

0.28

0.26

+0.02

Drawdowns

VDE vs. IYE - Drawdown Comparison

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

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Drawdown Indicators

VDEIYEDifference

Max Drawdown

Largest peak-to-trough decline

-74.20%

-73.74%

-0.46%

Max Drawdown (1Y)

Largest decline over 1 year

-11.80%

-11.92%

+0.12%

Max Drawdown (3Y)

Largest decline over 3 years

-21.41%

-20.37%

-1.04%

Max Drawdown (5Y)

Largest decline over 5 years

-26.58%

-25.61%

-0.97%

Max Drawdown (10Y)

Largest decline over 10 years

-69.29%

-68.59%

-0.70%

Current Drawdown

Current decline from peak

-6.27%

-5.74%

-0.53%

Average Drawdown

Average peak-to-trough decline

-19.96%

-19.36%

-0.60%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.02%

4.04%

-0.02%

Volatility

VDE vs. IYE - Volatility Comparison

Vanguard Energy ETF (VDE) and iShares U.S. Energy ETF (IYE) have volatilities of 7.99% and 7.92%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

VDEIYEDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.99%

7.92%

+0.07%

Volatility (6M)

Calculated over the trailing 6-month period

16.27%

16.06%

+0.21%

Volatility (1Y)

Calculated over the trailing 1-year period

20.34%

19.96%

+0.38%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

26.40%

25.71%

+0.69%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

29.93%

29.51%

+0.42%

VDE vs. IYE - Expense Ratio Comparison

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

Dividends

VDE vs. IYE - Dividend Comparison

VDE's dividend yield for the trailing twelve months is around 2.37%, more than IYE's 2.13% yield.

PositionTTM20252024202320222021202020192018201720162015
IYE
iShares U.S. Energy ETF		2.13%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		2.37%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

With a correlation of 1.00, VDE and IYE 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.

VDE has higher volatility (7.99%) compared to IYE (7.92%). In terms of maximum drawdown, VDE dropped -74.20% vs IYE's -73.74%.

On 10-year performance, VDE leads with 9.47% vs 8.76% for IYE. On fees, VDE is cheaper at 0.09% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, VDE has performed better with a 9.47% return vs 8.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

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

VDE has the higher dividend yield at 2.37%, compared with 2.13% for IYE.

VDE tracks MSCI US Investable Market Energy 25/50 Index, while IYE tracks Dow Jones U.S. Oil & Gas Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VDE and 0.42% for IYE.

VDE currently has the higher Sharpe Ratio (2.41 vs 2.37), 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.

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