VDE vs. VTI

Last updated Jun 5, 2026

VDE (Vanguard Energy ETF) and VTI (Vanguard Total Stock Market ETF) are both exchange-traded funds - VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index, while VTI is a Large Cap Blend Equities fund tracking the CRSP US Total Market Index. Both are passively managed. Over the past 10 years, VDE returned 9.47%/yr vs 15.04%/yr for VTI. A 0.60 correlation means they provide meaningful diversification when combined. VDE charges 0.09%/yr vs 0.03%/yr for VTI.

Performance

VDE vs. VTI - Performance Comparison

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

Returns By Period

In the year-to-date period, VDE achieves a 32.48% return, which is significantly higher than VTI's 11.72% return. Over the past 10 years, VDE has underperformed VTI with an annualized return of 9.47%, while VTI has yielded a comparatively higher 15.04% 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%

VTI

• 1D: 0.47%
• 1M: 4.59%
• YTD: 11.72%
• 6M: 11.43%
• 1Y: 28.79%
• 3Y*: 22.37%
• 5Y*: 12.80%
• 10Y*: 15.04%

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

VDE vs. VTI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDE Vanguard Energy ETF	32.48%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%
VTI Vanguard Total Stock Market ETF	11.72%	17.10%	23.81%	26.05%	-19.52%	25.68%	21.08%	30.67%	-5.23%	21.21%

Correlation

The correlation between VDE and VTI is -0.05, 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	-0.05
Correlation (3Y) Calculated over the trailing 3-year period	0.21
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (10Y) Calculated over the trailing 10-year period	0.47
Correlation (All Time) Calculated using the full available price history since Sep 30, 2004	0.60

The correlation between VDE and VTI shifts across timeframes, from -0.05 (1 year) to 0.60 (all time), reflecting how their relationship changes across market environments.

VDE vs. VTI - Sectors Allocation Comparison

Sectors	VDE	VTI
Energy	99.5%	3.7%
Basic Materials	0.4%	2.0%
Industrials	0.1%	9.8%
Communication Services	-	10.3%
Consumer Cyclical	-	10.0%
Consumer Defensive	-	4.7%
Financial Services	-	12.0%
Healthcare	-	9.2%
Real Estate	-	2.4%
Technology	-	33.5%
Utilities	-	2.3%

Return for Risk

VDE vs. VTI — Risk / Return Rank

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

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

VTI

VTI Risk / Return Rank: 73
VTI Sharpe Ratio Rank: 74
VTI Sortino Ratio Rank: 73
VTI Omega Ratio Rank: 73
VTI Calmar Ratio Rank: 66
VTI Martin Ratio Rank: 78

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. VTI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and Vanguard Total Stock Market ETF (VTI). 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.

	VDE	VTI	Difference
Sharpe ratio: Return per unit of total volatility	2.41	2.38	+0.03
Sortino ratio: Return per unit of downside risk	3.06	3.24	-0.19
Omega ratio: Gain probability vs. loss probability	1.39	1.43	-0.04
Calmar ratio: Return relative to maximum drawdown	4.13	3.24	+0.89
Martin ratio: Return relative to average drawdown	12.11	14.94	-2.83
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. VTI - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 2.41, which is comparable to the VTI Sharpe Ratio of 2.38. The chart below compares the historical Sharpe Ratios of VDE and VTI, 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

	VDE	VTI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.41	2.38	+0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	0.74	+0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.32	0.82	-0.51
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.51	-0.23

Drawdowns

VDE vs. VTI - Drawdown Comparison

The maximum VDE drawdown since its inception was -74.20%, which is greater than VTI's maximum drawdown of -55.45%. Use the drawdown chart below to compare losses from any high point for VDE and VTI.

Drawdown Indicators

	VDE	VTI	Difference
Max Drawdown Largest peak-to-trough decline	-74.20%	-55.45%	-18.75%
Max Drawdown (1Y) Largest decline over 1 year	-11.80%	-8.92%	-2.88%
Max Drawdown (3Y) Largest decline over 3 years	-21.41%	-19.30%	-2.11%
Max Drawdown (5Y) Largest decline over 5 years	-26.58%	-25.36%	-1.22%
Max Drawdown (10Y) Largest decline over 10 years	-69.29%	-35.00%	-34.29%
Current Drawdown Current decline from peak	-6.27%	-0.26%	-6.01%
Average Drawdown Average peak-to-trough decline	-19.96%	-8.03%	-11.93%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.02%	1.93%	+2.09%

Volatility

VDE vs. VTI - Volatility Comparison

Vanguard Energy ETF (VDE) has a higher volatility of 7.99% compared to Vanguard Total Stock Market ETF (VTI) at 2.90%. This indicates that VDE's price experiences larger fluctuations and is considered to be riskier than VTI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDE	VTI	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.99%	2.90%	+5.09%
Volatility (6M) Calculated over the trailing 6-month period	16.27%	9.13%	+7.14%
Volatility (1Y) Calculated over the trailing 1-year period	20.34%	12.17%	+8.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.40%	17.40%	+9.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.93%	18.30%	+11.63%

VDE vs. VTI - Expense Ratio Comparison

VDE has a 0.09% expense ratio, which is higher than VTI's 0.03% 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. VTI - Dividend Comparison

VDE's dividend yield for the trailing twelve months is around 2.37%, more than VTI's 1.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VTI Vanguard Total Stock Market ETF	1.01%	1.12%	1.27%	1.44%	1.66%	1.21%	1.42%	1.78%	2.04%	1.71%	1.92%	1.98%

Frequently Asked Questions

Can I hold both VDE and VTI in my portfolio?

VDE and VTI have a correlation of -0.05, 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 VTI?

VDE has higher volatility (7.99%) compared to VTI (2.90%). In terms of maximum drawdown, VDE dropped -74.20% vs VTI's -55.45%.

Which ETF is better, VDE or VTI?

On 10-year performance, VTI leads with 15.04% vs 9.47% for VDE. On fees, VTI is cheaper at 0.03% per year. On volatility, VTI has been the lower-risk option at 2.90%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDE or VTI?

Over the 10-year period, VTI has performed better with a 15.04% return vs 9.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDE or VTI?

VTI is cheaper with a 0.03% expense ratio, compared with 0.09% for VDE.

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

VDE has the higher dividend yield at 2.37%, compared with 1.01% for VTI.

What is the main difference between VDE and VTI?

VDE is categorized as Energy Equities, while VTI is Large Cap Blend Equities. VDE tracks MSCI US Investable Market Energy 25/50 Index, while VTI tracks CRSP US Total Market Index. Their fees differ too: 0.09% for VDE and 0.03% for VTI.

Which has better risk-adjusted returns?

VDE currently has the higher Sharpe Ratio (2.41 vs 2.38), 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.