VDE vs. XYLD

Last updated Jul 26, 2026

VDE (Vanguard Energy ETF) and XYLD (Global X S&P 500 Covered Call ETF) are both exchange-traded funds - VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index, while XYLD is a Derivative Income fund tracking the Cboe S&P 500 BuyWrite Index. Both are passively managed. Over the past 10 years, VDE returned 9.81%/yr vs 8.14%/yr for XYLD. Their 0.43 correlation means their historical movements had little consistent relationship. VDE charges 0.09%/yr vs 0.60%/yr for XYLD.

Performance

VDE vs. XYLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Energy ETF (VDE) and Global X S&P 500 Covered Call ETF (XYLD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VDE achieves a 35.27% return, which is significantly higher than XYLD's 6.98% return. Over the past 10 years, VDE has outperformed XYLD with an annualized return of 9.81%, while XYLD has yielded a comparatively lower 8.14% annualized return.

VDE

• 1D: 0.04%
• 1M: 10.29%
• 6M: 22.82%
• YTD: 35.27%
• 1Y: 41.64%
• 3Y*: 15.31%
• 5Y*: 24.05%
• 10Y*: 9.81%
• ALL TIME*: 8.35%

XYLD

• 1D: 0.15%
• 1M: 2.28%
• 6M: 6.06%
• YTD: 6.98%
• 1Y: 16.60%
• 3Y*: 11.30%
• 5Y*: 7.72%
• 10Y*: 8.14%
• ALL TIME*: 8.30%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VDE Vanguard Energy ETF	$71.54M	$103.66M	$111.94M
XYLD Global X S&P 500 Covered Call ETF	$39.54M	$38.84M	$31.76M

VDE vs. XYLD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VDE Vanguard Energy ETF	35.27%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%
XYLD Global X S&P 500 Covered Call ETF	6.98%	8.02%	19.49%	11.10%	-12.05%	19.59%	-0.56%	21.41%	-6.09%	16.49%

Correlation

The correlation between VDE and XYLD is -0.10, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.10
Correlation (3Y) Balances recent behavior with more history.	0.14
Correlation (5Y) Shows whether the relationship held over a longer period.	0.27
Correlation (10Y) Provides a long-term view across more market conditions.	0.39
Correlation (All Time) Calculated using the full available price history since Jun 24, 2013	0.43

The correlation between VDE and XYLD shifts across timeframes, from -0.10 (1 year) to 0.43 (all time), reflecting how their relationship changes across market environments.

VDE vs. XYLD - Sectors Allocation Comparison

Sectors	VDE	XYLD
Energy	77.0%	3.0%
Basic Materials	0.4%	1.7%
Industrials	0.2%	8.4%
Utilities	0.1%	2.2%
Communication Services	-	9.9%
Consumer Cyclical	-	9.5%
Consumer Defensive	-	4.5%
Financial Services	-	11.6%
Healthcare	-	8.9%
Real Estate	-	1.8%
Technology	-	38.5%

Return for Risk

VDE vs. XYLD — Risk / Return Rank

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

VDE

VDE Risk / Return Rank: 75
VDE Sharpe Ratio Rank: 85
VDE Sortino Ratio Rank: 79
VDE Omega Ratio Rank: 76
VDE Calmar Ratio Rank: 75
VDE Martin Ratio Rank: 61

XYLD

XYLD Risk / Return Rank: 91
XYLD Sharpe Ratio Rank: 93
XYLD Sortino Ratio Rank: 93
XYLD Omega Ratio Rank: 95
XYLD Calmar Ratio Rank: 84
XYLD Martin Ratio Rank: 93

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. XYLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and Global X S&P 500 Covered Call ETF (XYLD). 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	XYLD	Difference
Sharpe ratio: Return per unit of total volatility	1.98	2.43	-0.44
Sortino ratio: Return per unit of downside risk	2.57	3.45	-0.89
Omega ratio: Gain probability vs. loss probability	1.32	1.54	-0.22
Calmar ratio: Return relative to maximum drawdown	2.74	3.20	-0.47
Martin ratio: Return relative to average drawdown	7.34	16.66	-9.31

VDE vs. XYLD - Sharpe Ratio Comparison

The current VDE Sharpe Ratio is 1.98, which is comparable to the XYLD Sharpe Ratio of 2.43. The chart below compares the historical Sharpe Ratios of VDE and XYLD, 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. XYLD - Drawdown Comparison

The maximum VDE drawdown since its inception was -74.20%, which is greater than XYLD's maximum drawdown of -33.46%. Use the drawdown chart below to compare losses from any high point for VDE and XYLD.

Drawdown Indicators

	VDE	XYLD	Difference
Max Drawdown Largest peak-to-trough decline	-74.20%	-33.46%	-40.74%
Max Drawdown (1Y) Largest decline over 1 year	-15.04%	-5.29%	-9.75%
Max Drawdown (3Y) Largest decline over 3 years	-21.41%	-15.53%	-5.88%
Max Drawdown (5Y) Largest decline over 5 years	-26.58%	-18.66%	-7.92%
Max Drawdown (10Y) Largest decline over 10 years	-69.29%	-33.46%	-35.83%
Current Drawdown Current decline from peak	-4.29%	-0.51%	-3.78%
Average Drawdown Average peak-to-trough decline	-19.90%	-3.68%	-16.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.59%	1.01%	+4.58%

Volatility

VDE vs. XYLD - Volatility Comparison

Vanguard Energy ETF (VDE) has a higher volatility of 5.13% compared to Global X S&P 500 Covered Call ETF (XYLD) at 1.57%. This indicates that VDE's price experiences larger fluctuations and is considered to be riskier than XYLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VDE	XYLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.13%	1.57%	+3.56%
Volatility (6M) Calculated over the trailing 6-month period	16.34%	5.80%	+10.54%
Volatility (1Y) Calculated over the trailing 1-year period	20.76%	6.98%	+13.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.14%	11.25%	+14.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.90%	14.15%	+15.75%

VDE vs. XYLD - Expense Ratio Comparison

VDE has a 0.09% expense ratio, which is lower than XYLD's 0.60% expense ratio.

Dividends

VDE vs. XYLD - Dividend Comparison

VDE's dividend yield for the trailing twelve months is around 2.39%, less than XYLD's 10.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDE Vanguard Energy ETF	2.39%	3.11%	3.23%	3.34%	3.65%	4.13%	4.76%	3.42%	3.35%	2.90%	2.31%	3.17%
XYLD Global X S&P 500 Covered Call ETF	10.63%	10.51%	11.54%	10.51%	13.43%	9.07%	7.93%	5.76%	7.12%	5.18%	3.23%	4.65%

Frequently Asked Questions

Can I hold both VDE and XYLD in my portfolio?

VDE and XYLD have a correlation of -0.10, 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 XYLD?

VDE has higher volatility (5.13%) compared to XYLD (1.57%). In terms of maximum drawdown, VDE dropped -74.20% vs XYLD's -33.46%.

Which ETF is better, VDE or XYLD?

On 10-year performance, VDE leads with 9.81% vs 8.14% for XYLD. On fees, VDE is cheaper at 0.09% per year. On volatility, XYLD has been the lower-risk option at 1.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VDE or XYLD?

Over the 10-year period, VDE has performed better with a 9.81% return vs 8.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VDE or XYLD?

VDE is cheaper with a 0.09% expense ratio, compared with 0.60% for XYLD.

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

XYLD has the higher dividend yield at 10.63%, compared with 2.39% for VDE.

What is the main difference between VDE and XYLD?

VDE is categorized as Energy Equities, while XYLD is Derivative Income. VDE tracks MSCI US Investable Market Energy 25/50 Index, while XYLD tracks Cboe S&P 500 BuyWrite Index. They also come from different issuers: Vanguard and Global X. Their fees differ too: 0.09% for VDE and 0.60% for XYLD.

Which has better risk-adjusted returns?

XYLD currently has the higher Sharpe Ratio (2.43 vs 1.98), 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.