VNOM vs. XLE
VNOM (Viper Energy Partners LP) is a stock, while XLE (State Street Energy Select Sector SPDR ETF) is Energy Equities fund tracking the Energy Select Sector Index. Over the past 10 years, VNOM returned 15.96%/yr vs 9.29%/yr for XLE. A 0.61 correlation means they provide meaningful diversification when combined.
Performance
VNOM vs. XLE - Performance Comparison
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Returns By Period
In the year-to-date period, VNOM achieves a 15.72% return, which is significantly lower than XLE's 22.58% return. Over the past 10 years, VNOM has outperformed XLE with an annualized return of 15.96%, while XLE has yielded a comparatively lower 9.29% annualized return.
VNOM
- 1D
- 0.81%
- 1M
- -7.10%
- YTD
- 15.72%
- 6M
- 16.23%
- 1Y
- 13.04%
- 3Y*
- 27.43%
- 5Y*
- 25.10%
- 10Y*
- 15.96%
XLE
- 1D
- 1.26%
- 1M
- -8.47%
- YTD
- 22.58%
- 6M
- 23.97%
- 1Y
- 26.32%
- 3Y*
- 15.44%
- 5Y*
- 18.90%
- 10Y*
- 9.29%
VNOM vs. XLE - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VNOM Viper Energy Partners LP | 15.72% | -16.58% | 65.52% | 4.83% | 61.69% | 94.24% | -50.69% | 0.66% | 19.60% | 55.99% |
XLE State Street Energy Select Sector SPDR ETF | 22.58% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
Correlation
The correlation between VNOM and XLE is 0.67, 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 | 0.67 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.65 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.67 |
Correlation (All Time) Calculated using the full available price history since Jun 18, 2014 | 0.61 |
The correlation between VNOM and XLE has been stable across timeframes, ranging from 0.61 to 0.71 - a consistent structural relationship.
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Return for Risk
VNOM vs. XLE — Risk / Return Rank
VNOM
XLE
VNOM vs. XLE - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Viper Energy Partners LP (VNOM) 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.
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.
| VNOM | XLE | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.81 | ||
| Sortino ratioReturn per unit of downside risk | -0.95 | ||
| Omega ratioGain probability vs. loss probability | 1.10 | 1.21 | -0.12 |
| Calmar ratioReturn relative to maximum drawdown | 0.94 | 1.88 | -0.94 |
| Martin ratioReturn relative to average drawdown | 2.29 | 5.70 | -3.41 |
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Drawdowns
VNOM vs. XLE - Drawdown Comparison
The maximum VNOM drawdown since its inception was -86.96%, which is greater than XLE's maximum drawdown of -71.26%. Use the drawdown chart below to compare losses from any high point for VNOM and XLE.
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Drawdown Indicators
| VNOM | XLE | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -86.96% | -71.26% | -15.70% |
Max Drawdown (1Y)Largest decline over 1 year | -13.98% | -14.05% | +0.07% |
Max Drawdown (3Y)Largest decline over 3 years | -34.46% | -20.14% | -14.32% |
Max Drawdown (5Y)Largest decline over 5 years | -34.46% | -26.04% | -8.42% |
Max Drawdown (10Y)Largest decline over 10 years | -86.96% | -66.81% | -20.15% |
Current DrawdownCurrent decline from peak | -16.24% | -12.96% | -3.28% |
Average DrawdownAverage peak-to-trough decline | -31.62% | -17.97% | -13.65% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.34% | 4.66% | +1.68% |
Volatility
VNOM vs. XLE - Volatility Comparison
The current volatility for Viper Energy Partners LP (VNOM) is 6.35%, while State Street Energy Select Sector SPDR ETF (XLE) has a volatility of 7.06%. This indicates that VNOM 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.
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Volatility by Period
| VNOM | XLE | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.35% | 7.06% | -0.71% |
Volatility (6M)Calculated over the trailing 6-month period | 19.82% | 16.89% | +2.93% |
Volatility (1Y)Calculated over the trailing 1-year period | 29.03% | 20.96% | +8.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 35.76% | 25.98% | +9.78% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 45.20% | 29.62% | +15.58% |
Dividends
VNOM vs. XLE - Dividend Comparison
VNOM's dividend yield for the trailing twelve months is around 5.30%, more than XLE's 3.47% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VNOM Viper Energy Partners LP | 5.30% | 6.03% | 4.89% | 5.58% | 7.68% | 5.16% | 5.85% | 7.38% | 8.14% | 5.27% | 4.83% | 6.16% |
XLE State Street Energy Select Sector SPDR ETF | 3.47% | 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
VNOM and XLE have a correlation of 0.67, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
XLE has higher volatility (7.06%) compared to VNOM (6.35%). In terms of maximum drawdown, VNOM dropped -86.96% vs XLE's -71.26%.
XLE currently has the higher Sharpe Ratio (1.26 vs 0.45), 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.
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