VDE vs. MGV

Last updated Jun 23, 2026

VDE (Vanguard Energy ETF) and MGV (Vanguard Mega Cap Value ETF) are both exchange-traded funds - VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index, while MGV is a Large Cap Value Equities fund tracking the CRSP US Mega Cap Value Index. Both are passively managed. Over the past 10 years, VDE returned 8.84%/yr vs 13.43%/yr for MGV. A 0.67 correlation means they provide meaningful diversification when combined. VDE charges 0.09%/yr vs 0.05%/yr for MGV.

Performance

VDE vs. MGV - Performance Comparison

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

Returns By Period

In the year-to-date period, VDE achieves a 22.80% return, which is significantly higher than MGV's 16.85% return. Over the past 10 years, VDE has underperformed MGV with an annualized return of 8.84%, while MGV has yielded a comparatively higher 13.43% annualized return.

VDE

• 1D: 1.27%
• 1M: -8.49%
• YTD: 22.80%
• 6M: 24.09%
• 1Y: 26.80%
• 3Y*: 15.90%
• 5Y*: 18.82%
• 10Y*: 8.84%

MGV

• 1D: 1.09%
• 1M: 4.51%
• YTD: 16.85%
• 6M: 16.55%
• 1Y: 30.47%
• 3Y*: 19.86%
• 5Y*: 13.34%
• 10Y*: 13.43%

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

VDE vs. MGV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDE Vanguard Energy ETF	22.80%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%
MGV Vanguard Mega Cap Value ETF	16.85%	15.45%	16.94%	9.16%	-1.22%	25.93%	2.50%	25.54%	-4.13%	16.85%

Correlation

The correlation between VDE and MGV is 0.19, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.19
Correlation (3Y) Calculated over the trailing 3-year period	0.42
Correlation (5Y) Calculated over the trailing 5-year period	0.51
Correlation (10Y) Calculated over the trailing 10-year period	0.60
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.67

Over the past year, the correlation between VDE and MGV has dropped to 0.19 - well below their long-term average of 0.67, suggesting their price drivers have been diverging.

VDE vs. MGV - Sectors Allocation Comparison

Sectors	VDE	MGV
Energy	99.5%	6.0%
Basic Materials	0.4%	2.3%
Industrials	0.1%	13.2%
Communication Services	-	3.2%
Consumer Cyclical	-	3.4%
Consumer Defensive	-	11.0%
Financial Services	-	22.8%
Healthcare	-	16.0%
Real Estate	-	1.2%
Technology	-	18.5%
Utilities	-	2.3%

Return for Risk

VDE vs. MGV — Risk / Return Rank

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

VDE

VDE Risk / Return Rank: 36
VDE Sharpe Ratio Rank: 37
VDE Sortino Ratio Rank: 35
VDE Omega Ratio Rank: 33
VDE Calmar Ratio Rank: 39
VDE Martin Ratio Rank: 39

MGV

MGV Risk / Return Rank: 90
MGV Sharpe Ratio Rank: 92
MGV Sortino Ratio Rank: 92
MGV Omega Ratio Rank: 89
MGV Calmar Ratio Rank: 87
MGV Martin Ratio Rank: 88

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. MGV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and Vanguard Mega Cap Value ETF (MGV). 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	MGV	Difference
Sharpe ratio: Return per unit of total volatility	1.29	3.02	-1.73
Sortino ratio: Return per unit of downside risk	1.78	4.27	-2.49
Omega ratio: Gain probability vs. loss probability	1.22	1.54	-0.33
Calmar ratio: Return relative to maximum drawdown	1.90	4.77	-2.88
Martin ratio: Return relative to average drawdown	5.92	18.12	-12.19

VDE vs. MGV - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 1.29, which is lower than the MGV Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of VDE and MGV, 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. MGV - Drawdown Comparison

The maximum VDE drawdown since its inception was -74.20%, which is greater than MGV's maximum drawdown of -56.07%. Use the drawdown chart below to compare losses from any high point for VDE and MGV.

Drawdown Indicators

	VDE	MGV	Difference
Max Drawdown Largest peak-to-trough decline	-74.20%	-56.07%	-18.13%
Max Drawdown (1Y) Largest decline over 1 year	-14.20%	-6.42%	-7.78%
Max Drawdown (3Y) Largest decline over 3 years	-21.41%	-13.18%	-8.23%
Max Drawdown (5Y) Largest decline over 5 years	-26.58%	-16.54%	-10.04%
Max Drawdown (10Y) Largest decline over 10 years	-69.29%	-35.41%	-33.88%
Current Drawdown Current decline from peak	-13.11%	0.00%	-13.11%
Average Drawdown Average peak-to-trough decline	-19.94%	-7.78%	-12.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.57%	1.69%	+2.88%

Volatility

VDE vs. MGV - Volatility Comparison

Vanguard Energy ETF (VDE) has a higher volatility of 7.02% compared to Vanguard Mega Cap Value ETF (MGV) at 3.32%. This indicates that VDE's price experiences larger fluctuations and is considered to be riskier than MGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDE	MGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.02%	3.32%	+3.70%
Volatility (6M) Calculated over the trailing 6-month period	16.69%	7.77%	+8.92%
Volatility (1Y) Calculated over the trailing 1-year period	20.84%	10.15%	+10.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.37%	13.57%	+12.80%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.96%	16.36%	+13.60%

VDE vs. MGV - Expense Ratio Comparison

VDE has a 0.09% expense ratio, which is higher than MGV's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VDE vs. MGV - Dividend Comparison

VDE's dividend yield for the trailing twelve months is around 2.56%, more than MGV's 1.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGV Vanguard Mega Cap Value ETF	1.82%	2.04%	2.31%	2.48%	2.45%	2.17%	2.47%	2.69%	2.65%	2.34%	2.53%	2.59%
VDE Vanguard Energy ETF	2.56%	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 MGV in my portfolio?

VDE and MGV have a correlation of 0.19, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VDE or MGV?

VDE has higher volatility (7.02%) compared to MGV (3.32%). In terms of maximum drawdown, VDE dropped -74.20% vs MGV's -56.07%.

Which ETF is better, VDE or MGV?

On 10-year performance, MGV leads with 13.43% vs 8.84% for VDE. On fees, MGV is cheaper at 0.05% per year. On volatility, MGV has been the lower-risk option at 3.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDE or MGV?

Over the 10-year period, MGV has performed better with a 13.43% return vs 8.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDE or MGV?

MGV is cheaper with a 0.05% expense ratio, compared with 0.09% for VDE.

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

VDE has the higher dividend yield at 2.56%, compared with 1.82% for MGV.

What is the main difference between VDE and MGV?

VDE is categorized as Energy Equities, while MGV is Large Cap Value Equities. VDE tracks MSCI US Investable Market Energy 25/50 Index, while MGV tracks CRSP US Mega Cap Value Index. Their fees differ too: 0.09% for VDE and 0.05% for MGV.

Which has better risk-adjusted returns?

MGV currently has the higher Sharpe Ratio (3.02 vs 1.29), 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.