VIG vs. XME

Last updated Jul 21, 2026

VIG (Vanguard Dividend Appreciation ETF) and XME (SPDR S&P Metals & Mining ETF) are both exchange-traded funds - VIG is a Dividend fund tracking the S&P U.S. Dividend Growers Index, while XME is a Materials fund tracking the S&P Metals & Mining Select Industry Index. Both are passively managed. Over the past 10 years, VIG returned 12.79%/yr vs 15.15%/yr for XME. A 0.58 correlation means they provide meaningful diversification when combined. VIG charges 0.04%/yr vs 0.35%/yr for XME.

Performance

VIG vs. XME - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Dividend Appreciation ETF (VIG) and SPDR S&P Metals & Mining ETF (XME). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VIG achieves a 8.24% return, which is significantly higher than XME's -5.54% return. Over the past 10 years, VIG has underperformed XME with an annualized return of 12.79%, while XME has yielded a comparatively higher 15.15% annualized return.

VIG

• 1D: -0.70%
• 1M: 0.75%
• 6M: 5.43%
• YTD: 8.24%
• 1Y: 16.35%
• 3Y*: 14.50%
• 5Y*: 10.36%
• 10Y*: 12.79%
• ALL TIME*: 10.17%

XME

• 1D: -0.62%
• 1M: -16.42%
• 6M: -21.16%
• YTD: -5.54%
• 1Y: 30.48%
• 3Y*: 24.42%
• 5Y*: 19.38%
• 10Y*: 15.15%
• ALL TIME*: 5.32%

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

VIG vs. XME - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIG Vanguard Dividend Appreciation ETF	8.24%	14.17%	16.99%	14.51%	-9.80%	23.76%	15.43%	29.62%	-2.08%	22.22%
XME SPDR S&P Metals & Mining ETF	-5.54%	83.47%	-4.54%	21.51%	13.13%	34.92%	15.95%	14.69%	-26.78%	21.17%

Correlation

The correlation between VIG and XME is 0.50, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.50
Correlation (3Y) Calculated over the trailing 3-year period	0.53
Correlation (5Y) Calculated over the trailing 5-year period	0.55
Correlation (10Y) Calculated over the trailing 10-year period	0.55
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.58

The correlation between VIG and XME has been stable across timeframes, ranging from 0.50 to 0.58 - a consistent structural relationship.

VIG vs. XME - Sectors Allocation Comparison

Sectors	VIG	XME
Technology	26.9%	2.2%
Financial Services	20.3%	-
Healthcare	17.8%	-
Industrials	11.9%	0.4%
Consumer Defensive	9.2%	0.7%
Consumer Cyclical	4.5%	-
Basic Materials	3.4%	74.8%
Utilities	3.0%	-
Energy	3.0%	24.0%
Communication Services	0.5%	-
Real Estate	-	-

Return for Risk

VIG vs. XME — Risk / Return Rank

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

VIG

VIG Risk / Return Rank: 65
VIG Sharpe Ratio Rank: 68
VIG Sortino Ratio Rank: 70
VIG Omega Ratio Rank: 66
VIG Calmar Ratio Rank: 55
VIG Martin Ratio Rank: 64

XME

XME Risk / Return Rank: 30
XME Sharpe Ratio Rank: 30
XME Sortino Ratio Rank: 31
XME Omega Ratio Rank: 30
XME Calmar Ratio Rank: 31
XME Martin Ratio Rank: 28

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. XME - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Dividend Appreciation ETF (VIG) and SPDR S&P Metals & Mining ETF (XME). 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.

	VIG	XME	Difference
Sharpe ratio: Return per unit of total volatility	1.64	0.84	+0.80
Sortino ratio: Return per unit of downside risk	2.40	1.31	+1.09
Omega ratio: Gain probability vs. loss probability	1.30	1.16	+0.13
Calmar ratio: Return relative to maximum drawdown	2.08	1.16	+0.91
Martin ratio: Return relative to average drawdown	8.39	2.79	+5.60

VIG vs. XME - Sharpe Ratio Comparison

The current VIG Sharpe Ratio is 1.64, which is higher than the XME Sharpe Ratio of 0.84. The chart below compares the historical Sharpe Ratios of VIG and XME, 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

VIG vs. XME - Drawdown Comparison

The maximum VIG drawdown since its inception was -46.81%, smaller than the maximum XME drawdown of -85.89%. Use the drawdown chart below to compare losses from any high point for VIG and XME.

Drawdown Indicators

	VIG	XME	Difference
Max Drawdown Largest peak-to-trough decline	-46.81%	-85.89%	+39.08%
Max Drawdown (1Y) Largest decline over 1 year	-7.91%	-26.37%	+18.46%
Max Drawdown (3Y) Largest decline over 3 years	-14.95%	-30.47%	+15.52%
Max Drawdown (5Y) Largest decline over 5 years	-20.39%	-37.27%	+16.88%
Max Drawdown (10Y) Largest decline over 10 years	-31.72%	-61.69%	+29.97%
Current Drawdown Current decline from peak	-1.33%	-26.37%	+25.04%
Average Drawdown Average peak-to-trough decline	-5.48%	-43.97%	+38.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.95%	10.94%	-8.99%

Volatility

VIG vs. XME - Volatility Comparison

The current volatility for Vanguard Dividend Appreciation ETF (VIG) is 2.08%, while SPDR S&P Metals & Mining ETF (XME) has a volatility of 8.26%. This indicates that VIG experiences smaller price fluctuations and is considered to be less risky than XME based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VIG	XME	Difference
Volatility (1M) Calculated over the trailing 1-month period	2.08%	8.26%	-6.18%
Volatility (6M) Calculated over the trailing 6-month period	7.67%	28.01%	-20.34%
Volatility (1Y) Calculated over the trailing 1-year period	10.03%	36.42%	-26.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.19%	32.67%	-18.48%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.02%	32.86%	-16.84%

VIG vs. XME - Expense Ratio Comparison

VIG has a 0.04% expense ratio, which is lower than XME's 0.35% expense ratio.

Dividends

VIG vs. XME - Dividend Comparison

VIG's dividend yield for the trailing twelve months is around 1.52%, more than XME's 0.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VIG Vanguard Dividend Appreciation ETF	1.52%	1.62%	1.73%	1.88%	1.96%	1.55%	1.63%	1.71%	2.08%	1.88%	2.14%	2.34%
XME SPDR S&P Metals & Mining ETF	0.38%	0.38%	0.65%	1.00%	1.64%	0.70%	0.99%	2.43%	2.23%	1.15%	1.02%	2.61%

Frequently Asked Questions

Can I hold both VIG and XME in my portfolio?

VIG and XME have a correlation of 0.50, 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 XME?

XME has higher volatility (8.26%) compared to VIG (2.08%). In terms of maximum drawdown, VIG dropped -46.81% vs XME's -85.89%.

Which ETF is better, VIG or XME?

On 10-year performance, XME leads with 15.15% vs 12.79% for VIG. On fees, VIG is cheaper at 0.04% per year. On volatility, VIG has been the lower-risk option at 2.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIG or XME?

Over the 10-year period, XME has performed better with a 15.15% return vs 12.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIG or XME?

VIG is cheaper with a 0.04% expense ratio, compared with 0.35% for XME.

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

VIG has the higher dividend yield at 1.52%, compared with 0.38% for XME.

What is the main difference between VIG and XME?

VIG is categorized as Dividend, while XME is Materials. VIG tracks S&P U.S. Dividend Growers Index, while XME tracks S&P Metals & Mining Select Industry Index. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.04% for VIG and 0.35% for XME.

Which has better risk-adjusted returns?

VIG currently has the higher Sharpe Ratio (1.64 vs 0.84), 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.