VIG vs. XLE

Last updated Jun 9, 2026

VIG (Vanguard Dividend Appreciation ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both exchange-traded funds - VIG is a Dividend fund tracking the S&P U.S. Dividend Growers Index, while XLE is a Energy Equities fund tracking the Energy Select Sector Index. Both are passively managed. Over the past 10 years, VIG returned 13.05%/yr vs 10.02%/yr for XLE. A 0.57 correlation means they provide meaningful diversification when combined. VIG charges 0.04%/yr vs 0.08%/yr for XLE.

Performance

VIG vs. XLE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Dividend Appreciation ETF (VIG) and State Street Energy Select Sector SPDR ETF (XLE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VIG achieves a 6.58% return, which is significantly lower than XLE's 31.32% return. Over the past 10 years, VIG has outperformed XLE with an annualized return of 13.05%, while XLE has yielded a comparatively lower 10.02% annualized return.

VIG

• 1D: 0.03%
• 1M: 2.32%
• YTD: 6.58%
• 6M: 6.47%
• 1Y: 18.31%
• 3Y*: 16.04%
• 5Y*: 10.62%
• 10Y*: 13.05%

XLE

• 1D: 1.14%
• 1M: 4.72%
• YTD: 31.32%
• 6M: 30.37%
• 1Y: 44.35%
• 3Y*: 16.51%
• 5Y*: 20.33%
• 10Y*: 10.02%

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

VIG vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIG Vanguard Dividend Appreciation ETF	6.58%	14.17%	16.99%	14.51%	-9.80%	23.76%	15.43%	29.62%	-2.08%	22.22%
XLE State Street Energy Select Sector SPDR ETF	31.32%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%

Correlation

The correlation between VIG and XLE is 0.06, 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	0.06
Correlation (3Y) Calculated over the trailing 3-year period	0.29
Correlation (5Y) Calculated over the trailing 5-year period	0.35
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since Apr 28, 2006	0.57

Over the past year, the correlation between VIG and XLE has dropped to 0.06 - well below their long-term average of 0.57, suggesting their price drivers have been diverging.

VIG vs. XLE - Sectors Allocation Comparison

Sectors	VIG	XLE
Technology	26.2%	-
Financial Services	20.6%	-
Healthcare	16.5%	-
Industrials	11.8%	-
Consumer Defensive	10.1%	-
Consumer Cyclical	4.7%	-
Energy	3.5%	100.0%
Basic Materials	3.5%	-
Utilities	3.2%	-
Communication Services	0.5%	-
Real Estate	-	-

Return for Risk

VIG vs. XLE — Risk / Return Rank

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

VIG

VIG Risk / Return Rank: 58
VIG Sharpe Ratio Rank: 60
VIG Sortino Ratio Rank: 64
VIG Omega Ratio Rank: 58
VIG Calmar Ratio Rank: 52
VIG Martin Ratio Rank: 58

XLE

XLE Risk / Return Rank: 70
XLE Sharpe Ratio Rank: 75
XLE Sortino Ratio Rank: 68
XLE Omega Ratio Rank: 65
XLE Calmar Ratio Rank: 79
XLE Martin Ratio Rank: 64

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.

VIG vs. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Dividend Appreciation ETF (VIG) and State Street Energy Select Sector SPDR ETF (XLE). 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.

	VIG	XLE	Difference
Sharpe ratio: Return per unit of total volatility	1.82	2.18	-0.36
Sortino ratio: Return per unit of downside risk	2.65	2.81	-0.16
Omega ratio: Gain probability vs. loss probability	1.33	1.35	-0.03
Calmar ratio: Return relative to maximum drawdown	2.33	3.70	-1.37
Martin ratio: Return relative to average drawdown	9.37	10.59	-1.22
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VIG vs. XLE - Sharpe Ratio Comparison

The current VIG Sharpe Ratio is 1.82, which is comparable to the XLE Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of VIG and XLE, 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

	VIG	XLE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.82	2.18	-0.36
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.75	0.79	-0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.82	0.34	+0.48
Sharpe Ratio (All Time) Calculated using the full available price history	0.60	0.31	+0.29

Drawdowns

VIG vs. XLE - Drawdown Comparison

The maximum VIG drawdown since its inception was -46.81%, smaller than the maximum XLE drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for VIG and XLE.

Drawdown Indicators

	VIG	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-46.81%	-71.26%	+24.45%
Max Drawdown (1Y) Largest decline over 1 year	-7.91%	-12.05%	+4.14%
Max Drawdown (3Y) Largest decline over 3 years	-14.95%	-20.14%	+5.19%
Max Drawdown (5Y) Largest decline over 5 years	-20.39%	-26.04%	+5.65%
Max Drawdown (10Y) Largest decline over 10 years	-31.72%	-66.81%	+35.09%
Current Drawdown Current decline from peak	-1.34%	-6.76%	+5.42%
Average Drawdown Average peak-to-trough decline	-5.51%	-17.98%	+12.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.96%	4.20%	-2.24%

Volatility

VIG vs. XLE - Volatility Comparison

The current volatility for Vanguard Dividend Appreciation ETF (VIG) is 2.42%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 7.07%. This indicates that VIG experiences smaller price fluctuations and is considered to be less risky than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIG	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.42%	7.07%	-4.65%
Volatility (6M) Calculated over the trailing 6-month period	7.68%	16.58%	-8.90%
Volatility (1Y) Calculated over the trailing 1-year period	10.10%	20.48%	-10.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.24%	26.03%	-11.79%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.06%	29.58%	-13.52%

VIG vs. XLE - Expense Ratio Comparison

VIG has a 0.04% expense ratio, which is lower than XLE's 0.08% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VIG vs. XLE - Dividend Comparison

VIG's dividend yield for the trailing twelve months is around 1.48%, less than XLE's 2.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VIG Vanguard Dividend Appreciation ETF	1.48%	1.62%	1.73%	1.88%	1.96%	1.55%	1.63%	1.71%	2.08%	1.88%	2.14%	2.34%
XLE State Street Energy Select Sector SPDR ETF	2.56%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%

Frequently Asked Questions

Can I hold both VIG and XLE in my portfolio?

VIG and XLE have a correlation of 0.06, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIG or XLE?

XLE has higher volatility (7.07%) compared to VIG (2.42%). In terms of maximum drawdown, VIG dropped -46.81% vs XLE's -71.26%.

Which ETF is better, VIG or XLE?

On 10-year performance, VIG leads with 13.05% vs 10.02% for XLE. On fees, VIG is cheaper at 0.04% per year. On volatility, VIG has been the lower-risk option at 2.42%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIG or XLE?

Over the 10-year period, VIG has performed better with a 13.05% return vs 10.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIG or XLE?

VIG is cheaper with a 0.04% expense ratio, compared with 0.08% for XLE.

Which ETF pays a higher dividend yield, VIG or XLE?

XLE has the higher dividend yield at 2.56%, compared with 1.48% for VIG.

What is the main difference between VIG and XLE?

VIG is categorized as Dividend, while XLE is Energy Equities. VIG tracks S&P U.S. Dividend Growers Index, while XLE tracks Energy Select Sector Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.04% for VIG and 0.08% for XLE.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (2.18 vs 1.82), 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.