VDE vs. VUG

Last updated Jun 4, 2026

VDE (Vanguard Energy ETF) and VUG (Vanguard Growth ETF) are both exchange-traded funds - VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index, while VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index. Both are passively managed. Over the past 10 years, VDE returned 9.70%/yr vs 18.26%/yr for VUG. At a 0.50 correlation, their price movements are largely independent. VDE charges 0.09%/yr vs 0.03%/yr for VUG.

Performance

VDE vs. VUG - Performance Comparison

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

Returns By Period

In the year-to-date period, VDE achieves a 32.24% return, which is significantly higher than VUG's 9.49% return. Over the past 10 years, VDE has underperformed VUG with an annualized return of 9.70%, while VUG has yielded a comparatively higher 18.26% annualized return.

VDE

• 1D: 1.13%
• 1M: -2.17%
• YTD: 32.24%
• 6M: 29.32%
• 1Y: 45.53%
• 3Y*: 17.97%
• 5Y*: 20.43%
• 10Y*: 9.70%

VUG

• 1D: -1.23%
• 1M: 6.22%
• YTD: 9.49%
• 6M: 8.72%
• 1Y: 27.84%
• 3Y*: 25.93%
• 5Y*: 15.11%
• 10Y*: 18.26%

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

VDE vs. VUG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDE Vanguard Energy ETF	32.24%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%
VUG Vanguard Growth ETF	9.49%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	27.72%

Correlation

The correlation between VDE and VUG is -0.18, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.04
Correlation (5Y) Calculated over the trailing 5-year period	0.18
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Sep 30, 2004	0.50

The correlation between VDE and VUG shifts across timeframes, from -0.18 (1 year) to 0.50 (all time), reflecting how their relationship changes across market environments.

VDE vs. VUG - Sectors Allocation Comparison

Sectors	VDE	VUG
Energy	99.5%	0.4%
Basic Materials	0.4%	0.6%
Industrials	0.1%	3.6%
Communication Services	-	17.3%
Consumer Cyclical	-	12.2%
Consumer Defensive	-	1.5%
Financial Services	-	4.3%
Healthcare	-	4.6%
Real Estate	-	1.0%
Technology	-	53.5%
Utilities	-	0.9%

Return for Risk

VDE vs. VUG — Risk / Return Rank

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

VDE

VDE Risk / Return Rank: 64
VDE Sharpe Ratio Rank: 66
VDE Sortino Ratio Rank: 60
VDE Omega Ratio Rank: 57
VDE Calmar Ratio Rank: 75
VDE Martin Ratio Rank: 62

VUG

VUG Risk / Return Rank: 43
VUG Sharpe Ratio Rank: 50
VUG Sortino Ratio Rank: 47
VUG Omega Ratio Rank: 48
VUG Calmar Ratio Rank: 33
VUG Martin Ratio Rank: 37

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. VUG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and Vanguard Growth ETF (VUG). 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	VUG	Difference
Sharpe ratio: Return per unit of total volatility	2.25	1.77	+0.48
Sortino ratio: Return per unit of downside risk	2.88	2.40	+0.48
Omega ratio: Gain probability vs. loss probability	1.36	1.31	+0.05
Calmar ratio: Return relative to maximum drawdown	3.88	1.69	+2.18
Martin ratio: Return relative to average drawdown	11.42	5.92	+5.49
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. VUG - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 2.25, which is comparable to the VUG Sharpe Ratio of 1.77. The chart below compares the historical Sharpe Ratios of VDE and VUG, 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	VUG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.25	1.77	+0.48
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	0.68	+0.09
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.33	0.85	-0.53
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.62	-0.34

Drawdowns

VDE vs. VUG - Drawdown Comparison

The maximum VDE drawdown since its inception was -74.20%, which is greater than VUG's maximum drawdown of -50.68%. Use the drawdown chart below to compare losses from any high point for VDE and VUG.

Drawdown Indicators

	VDE	VUG	Difference
Max Drawdown Largest peak-to-trough decline	-74.20%	-50.68%	-23.52%
Max Drawdown (1Y) Largest decline over 1 year	-11.80%	-16.53%	+4.73%
Max Drawdown (3Y) Largest decline over 3 years	-21.41%	-22.85%	+1.44%
Max Drawdown (5Y) Largest decline over 5 years	-26.58%	-35.61%	+9.03%
Max Drawdown (10Y) Largest decline over 10 years	-69.29%	-35.61%	-33.68%
Current Drawdown Current decline from peak	-6.43%	-1.51%	-4.92%
Average Drawdown Average peak-to-trough decline	-19.96%	-7.09%	-12.87%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.00%	4.71%	-0.71%

Volatility

VDE vs. VUG - Volatility Comparison

Vanguard Energy ETF (VDE) has a higher volatility of 7.99% compared to Vanguard Growth ETF (VUG) at 3.83%. This indicates that VDE's price experiences larger fluctuations and is considered to be riskier than VUG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDE	VUG	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.99%	3.83%	+4.16%
Volatility (6M) Calculated over the trailing 6-month period	16.33%	12.11%	+4.22%
Volatility (1Y) Calculated over the trailing 1-year period	20.38%	15.84%	+4.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.40%	22.22%	+4.18%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.93%	21.44%	+8.49%

VDE vs. VUG - Expense Ratio Comparison

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

VDE's dividend yield for the trailing twelve months is around 2.37%, more than VUG's 0.37% 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%
VUG Vanguard Growth ETF	0.37%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both VDE and VUG in my portfolio?

VDE and VUG have a correlation of -0.18, 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 VUG?

VDE has higher volatility (7.99%) compared to VUG (3.83%). In terms of maximum drawdown, VDE dropped -74.20% vs VUG's -50.68%.

Which ETF is better, VDE or VUG?

On 10-year performance, VUG leads with 18.26% vs 9.70% for VDE. On fees, VUG is cheaper at 0.03% per year. On volatility, VUG has been the lower-risk option at 3.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDE or VUG?

Over the 10-year period, VUG has performed better with a 18.26% return vs 9.70%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDE or VUG?

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

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

VDE has the higher dividend yield at 2.37%, compared with 0.37% for VUG.

What is the main difference between VDE and VUG?

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

Which has better risk-adjusted returns?

VDE currently has the higher Sharpe Ratio (2.25 vs 1.77), 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.