VPU vs. VDE

Last updated Jun 26, 2026

VPU (Vanguard Utilities ETF) and VDE (Vanguard Energy ETF) are both exchange-traded funds - VPU is a Utilities Equities fund tracking the MSCI US Investable Market Utilities 25/50 Index, while VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index. Both are passively managed. Over the past 10 years, VPU returned 9.30%/yr vs 9.17%/yr for VDE. At a 0.38 correlation, their price movements are largely independent. Both charge a 0.09% expense ratio.

Performance

VPU vs. VDE - Performance Comparison

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

Returns By Period

In the year-to-date period, VPU achieves a 8.52% return, which is significantly lower than VDE's 22.66% return. Both investments have delivered pretty close results over the past 10 years, with VPU having a 9.30% annualized return and VDE not far behind at 9.17%.

VPU

• 1D: 0.66%
• 1M: 1.44%
• YTD: 8.52%
• 6M: 8.11%
• 1Y: 16.97%
• 3Y*: 15.09%
• 5Y*: 10.47%
• 10Y*: 9.30%

VDE

• 1D: 1.10%
• 1M: -6.20%
• YTD: 22.66%
• 6M: 23.59%
• 1Y: 32.24%
• 3Y*: 15.22%
• 5Y*: 18.47%
• 10Y*: 9.17%

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

VPU vs. VDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VPU Vanguard Utilities ETF	8.52%	16.46%	23.04%	-7.45%	1.06%	17.40%	-0.74%	24.89%	4.38%	12.44%
VDE Vanguard Energy ETF	22.66%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%

Correlation

The correlation between VPU and VDE is 0.04, 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	0.04
Correlation (3Y) Calculated over the trailing 3-year period	0.23
Correlation (5Y) Calculated over the trailing 5-year period	0.24
Correlation (10Y) Calculated over the trailing 10-year period	0.20
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004	0.38

Over the past year, the correlation between VPU and VDE has dropped to 0.04 - well below their long-term average of 0.38, suggesting their price drivers have been diverging.

VPU vs. VDE - Sectors Allocation Comparison

Sectors	VPU	VDE
Utilities	99.3%	-
Energy	0.5%	99.5%
Industrials	0.2%	0.1%
Basic Materials	-	0.4%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Real Estate	-	-
Technology	-	-

Return for Risk

VPU vs. VDE — Risk / Return Rank

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

VPU

VPU Risk / Return Rank: 36
VPU Sharpe Ratio Rank: 37
VPU Sortino Ratio Rank: 34
VPU Omega Ratio Rank: 34
VPU Calmar Ratio Rank: 43
VPU Martin Ratio Rank: 31

VDE

VDE Risk / Return Rank: 49
VDE Sharpe Ratio Rank: 52
VDE Sortino Ratio Rank: 48
VDE Omega Ratio Rank: 45
VDE Calmar Ratio Rank: 53
VDE Martin Ratio Rank: 46

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.

VPU vs. VDE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Utilities ETF (VPU) and Vanguard Energy ETF (VDE). 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.

	VPU	VDE	Difference
Sharpe ratio: Return per unit of total volatility	1.19	1.57	-0.38
Sortino ratio: Return per unit of downside risk	1.64	2.09	-0.45
Omega ratio: Gain probability vs. loss probability	1.21	1.26	-0.05
Calmar ratio: Return relative to maximum drawdown	1.91	2.28	-0.37
Martin ratio: Return relative to average drawdown	4.07	6.79	-2.72

VPU vs. VDE - Sharpe Ratio Comparison

The current VPU Sharpe Ratio is 1.19, which is comparable to the VDE Sharpe Ratio of 1.57. The chart below compares the historical Sharpe Ratios of VPU and VDE, 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

VPU vs. VDE - Drawdown Comparison

The maximum VPU drawdown since its inception was -46.31%, smaller than the maximum VDE drawdown of -74.20%. Use the drawdown chart below to compare losses from any high point for VPU and VDE.

Drawdown Indicators

	VPU	VDE	Difference
Max Drawdown Largest peak-to-trough decline	-46.31%	-74.20%	+27.89%
Max Drawdown (1Y) Largest decline over 1 year	-8.90%	-14.20%	+5.30%
Max Drawdown (3Y) Largest decline over 3 years	-17.34%	-21.41%	+4.07%
Max Drawdown (5Y) Largest decline over 5 years	-25.15%	-26.58%	+1.43%
Max Drawdown (10Y) Largest decline over 10 years	-36.42%	-69.29%	+32.87%
Current Drawdown Current decline from peak	-2.46%	-13.22%	+10.76%
Average Drawdown Average peak-to-trough decline	-7.78%	-19.94%	+12.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.18%	4.76%	-0.58%

Volatility

VPU vs. VDE - Volatility Comparison

The current volatility for Vanguard Utilities ETF (VPU) is 5.22%, while Vanguard Energy ETF (VDE) has a volatility of 6.96%. This indicates that VPU experiences smaller price fluctuations and is considered to be less risky than VDE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VPU	VDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.22%	6.96%	-1.74%
Volatility (6M) Calculated over the trailing 6-month period	11.47%	16.74%	-5.27%
Volatility (1Y) Calculated over the trailing 1-year period	14.42%	20.70%	-6.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.03%	26.38%	-9.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.14%	29.93%	-10.79%

VPU vs. VDE - Expense Ratio Comparison

Both VPU and VDE have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VPU vs. VDE - Dividend Comparison

VPU's dividend yield for the trailing twelve months is around 3.23%, which matches VDE's 3.25% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDE Vanguard Energy ETF	3.25%	3.11%	3.23%	3.34%	3.65%	4.13%	4.76%	3.42%	3.35%	2.90%	2.31%	3.17%
VPU Vanguard Utilities ETF	3.23%	2.73%	3.02%	3.49%	2.98%	2.70%	3.17%	2.83%	3.23%	3.18%	3.19%	3.63%

Frequently Asked Questions

Can I hold both VPU and VDE in my portfolio?

VPU and VDE have a correlation of 0.04, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VPU or VDE?

VDE has higher volatility (6.96%) compared to VPU (5.22%). In terms of maximum drawdown, VPU dropped -46.31% vs VDE's -74.20%.

Which ETF is better, VPU or VDE?

On 10-year performance, VPU leads with 9.30% vs 9.17% for VDE. Both ETFs have the same 0.09% expense ratio. On volatility, VPU has been the lower-risk option at 5.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VPU or VDE?

Over the 10-year period, VPU has performed better with a 9.30% return vs 9.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VPU or VDE?

VPU and VDE have the same expense ratio: 0.09% per year.

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

VDE has the higher dividend yield at 3.25%, compared with 3.23% for VPU.

What is the main difference between VPU and VDE?

VPU is categorized as Utilities Equities, while VDE is Energy Equities. VPU tracks MSCI US Investable Market Utilities 25/50 Index, while VDE tracks MSCI US Investable Market Energy 25/50 Index.

Which has better risk-adjusted returns?

VDE currently has the higher Sharpe Ratio (1.57 vs 1.19), 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.