VDE vs. SOXX

Last updated Jun 13, 2026

VDE (Vanguard Energy ETF) and SOXX (iShares Semiconductor ETF) are both exchange-traded funds - VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index, while SOXX is a Semiconductors fund tracking the NYSE Semiconductor Index. Both are passively managed. Over the past 10 years, VDE returned 9.39%/yr vs 35.55%/yr for SOXX. At a 0.42 correlation, their price movements are largely independent. VDE charges 0.09%/yr vs 0.34%/yr for SOXX.

Performance

VDE vs. SOXX - Performance Comparison

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

Returns By Period

In the year-to-date period, VDE achieves a 29.66% return, which is significantly lower than SOXX's 98.11% return. Over the past 10 years, VDE has underperformed SOXX with an annualized return of 9.39%, while SOXX has yielded a comparatively higher 35.55% annualized return.

VDE

• 1D: 0.77%
• 1M: -1.49%
• YTD: 29.66%
• 6M: 28.33%
• 1Y: 35.15%
• 3Y*: 16.71%
• 5Y*: 20.05%
• 10Y*: 9.39%

SOXX

• 1D: 1.59%
• 1M: 12.49%
• YTD: 98.11%
• 6M: 99.51%
• 1Y: 171.57%
• 3Y*: 53.00%
• 5Y*: 33.69%
• 10Y*: 35.55%

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

VDE vs. SOXX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDE Vanguard Energy ETF	29.66%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%
SOXX iShares Semiconductor ETF	98.11%	40.74%	12.92%	67.12%	-35.09%	44.09%	52.72%	62.42%	-6.49%	39.79%

Correlation

The correlation between VDE and SOXX is 0.00, 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	0.00
Correlation (3Y) Calculated over the trailing 3-year period	0.13
Correlation (5Y) Calculated over the trailing 5-year period	0.23
Correlation (10Y) Calculated over the trailing 10-year period	0.31
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004	0.42

Over the past year, the correlation between VDE and SOXX has dropped to 0.00 - well below their long-term average of 0.42, suggesting their price drivers have been diverging.

VDE vs. SOXX - Sectors Allocation Comparison

Sectors	VDE	SOXX
Energy	99.5%	-
Basic Materials	0.4%	-
Industrials	0.1%	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	100.0%
Utilities	-	-

Return for Risk

VDE vs. SOXX — Risk / Return Rank

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

VDE

VDE Risk / Return Rank: 62
VDE Sharpe Ratio Rank: 65
VDE Sortino Ratio Rank: 59
VDE Omega Ratio Rank: 55
VDE Calmar Ratio Rank: 73
VDE Martin Ratio Rank: 58

SOXX

SOXX Risk / Return Rank: 96
SOXX Sharpe Ratio Rank: 97
SOXX Sortino Ratio Rank: 94
SOXX Omega Ratio Rank: 94
SOXX Calmar Ratio Rank: 97
SOXX Martin Ratio Rank: 97

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. SOXX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and iShares Semiconductor ETF (SOXX). 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	SOXX	Difference
Sharpe ratio: Return per unit of total volatility	1.85	4.43	-2.59
Sortino ratio: Return per unit of downside risk	2.43	4.37	-1.95
Omega ratio: Gain probability vs. loss probability	1.30	1.62	-0.32
Calmar ratio: Return relative to maximum drawdown	3.20	10.50	-7.30
Martin ratio: Return relative to average drawdown	8.95	38.20	-29.25

VDE vs. SOXX - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 1.85, which is lower than the SOXX Sharpe Ratio of 4.43. The chart below compares the historical Sharpe Ratios of VDE and SOXX, 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. SOXX - Drawdown Comparison

The maximum VDE drawdown since its inception was -74.20%, which is greater than SOXX's maximum drawdown of -70.21%. Use the drawdown chart below to compare losses from any high point for VDE and SOXX.

Drawdown Indicators

	VDE	SOXX	Difference
Max Drawdown Largest peak-to-trough decline	-74.20%	-70.21%	-3.99%
Max Drawdown (1Y) Largest decline over 1 year	-11.80%	-15.77%	+3.97%
Max Drawdown (3Y) Largest decline over 3 years	-21.41%	-41.36%	+19.95%
Max Drawdown (5Y) Largest decline over 5 years	-26.58%	-45.75%	+19.17%
Max Drawdown (10Y) Largest decline over 10 years	-69.29%	-45.75%	-23.54%
Current Drawdown Current decline from peak	-8.26%	-3.16%	-5.10%
Average Drawdown Average peak-to-trough decline	-19.95%	-19.95%	0.00%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.21%	4.33%	-0.12%

Volatility

VDE vs. SOXX - Volatility Comparison

The current volatility for Vanguard Energy ETF (VDE) is 7.15%, while iShares Semiconductor ETF (SOXX) has a volatility of 19.42%. This indicates that VDE experiences smaller price fluctuations and is considered to be less risky than SOXX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDE	SOXX	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.15%	19.42%	-12.27%
Volatility (6M) Calculated over the trailing 6-month period	16.59%	31.46%	-14.87%
Volatility (1Y) Calculated over the trailing 1-year period	20.46%	37.35%	-16.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.45%	36.73%	-10.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.93%	33.77%	-3.84%

VDE vs. SOXX - Expense Ratio Comparison

VDE has a 0.09% expense ratio, which is lower than SOXX's 0.34% expense ratio.

Dividends

VDE vs. SOXX - Dividend Comparison

VDE's dividend yield for the trailing twelve months is around 2.42%, more than SOXX's 0.28% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SOXX iShares Semiconductor ETF	0.28%	0.57%	0.67%	0.78%	1.26%	0.64%	0.81%	1.23%	1.37%	0.90%	1.08%	1.29%
VDE Vanguard Energy ETF	2.42%	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 SOXX in my portfolio?

VDE and SOXX have a correlation of 0.00, 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 SOXX?

SOXX has higher volatility (19.42%) compared to VDE (7.15%). In terms of maximum drawdown, VDE dropped -74.20% vs SOXX's -70.21%.

Which ETF is better, VDE or SOXX?

On 10-year performance, SOXX leads with 35.55% vs 9.39% for VDE. On fees, VDE is cheaper at 0.09% per year. On volatility, VDE has been the lower-risk option at 7.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDE or SOXX?

Over the 10-year period, SOXX has performed better with a 35.55% return vs 9.39%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDE or SOXX?

VDE is cheaper with a 0.09% expense ratio, compared with 0.34% for SOXX.

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

VDE has the higher dividend yield at 2.42%, compared with 0.28% for SOXX.

What is the main difference between VDE and SOXX?

VDE is categorized as Energy Equities, while SOXX is Semiconductors. VDE tracks MSCI US Investable Market Energy 25/50 Index, while SOXX tracks NYSE Semiconductor Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.09% for VDE and 0.34% for SOXX.

Which has better risk-adjusted returns?

SOXX currently has the higher Sharpe Ratio (4.43 vs 1.85), 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.