XLE vs. DGS
XLE (State Street Energy Select Sector SPDR ETF) and DGS (WisdomTree Emerging Markets SmallCap Dividend Fund) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector Index, while DGS is a Emerging Markets Diversified fund tracking the WisdomTree Emerging Markets SmallCap Dividend Index. Both are passively managed. Over the past 10 years, XLE returned 9.91%/yr vs 10.14%/yr for DGS. A 0.53 correlation means they provide meaningful diversification when combined. XLE charges 0.08%/yr vs 0.58%/yr for DGS.
Performance
XLE vs. DGS - Performance Comparison
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Returns By Period
In the year-to-date period, XLE achieves a 29.56% return, which is significantly higher than DGS's 14.94% return. Both investments have delivered pretty close results over the past 10 years, with XLE having a 9.91% annualized return and DGS not far ahead at 10.14%.
XLE
- 1D
- 0.75%
- 1M
- -0.90%
- YTD
- 29.56%
- 6M
- 28.37%
- 1Y
- 34.84%
- 3Y*
- 16.18%
- 5Y*
- 20.12%
- 10Y*
- 9.91%
DGS
- 1D
- 0.65%
- 1M
- 1.51%
- YTD
- 14.94%
- 6M
- 17.07%
- 1Y
- 25.61%
- 3Y*
- 15.36%
- 5Y*
- 8.06%
- 10Y*
- 10.14%
XLE vs. DGS - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
XLE State Street Energy Select Sector SPDR ETF | 29.56% | 7.88% | 5.56% | -0.63% | 64.32% | 53.28% | -32.67% | 11.74% | -18.22% | -0.89% |
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 14.94% | 21.18% | 1.13% | 19.08% | -12.35% | 15.33% | 4.06% | 18.90% | -16.52% | 37.47% |
Correlation
The correlation between XLE and DGS 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 | 0.18 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.29 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.40 |
Correlation (All Time) Calculated using the full available price history since Oct 30, 2007 | 0.53 |
The correlation between XLE and DGS shifts across timeframes, from -0.04 (1 year) to 0.53 (all time), reflecting how their relationship changes across market environments.
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Return for Risk
XLE vs. DGS — Risk / Return Rank
XLE
DGS
XLE vs. DGS - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS). 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.
| XLE | DGS | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.38 | ||
| Sortino ratioReturn per unit of downside risk | +0.38 | ||
| Omega ratioGain probability vs. loss probability | 1.30 | 1.27 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 3.10 | 2.38 | +0.72 |
| Martin ratioReturn relative to average drawdown | 8.63 | 7.84 | +0.79 |
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Drawdowns
XLE vs. DGS - Drawdown Comparison
The maximum XLE drawdown since its inception was -71.26%, which is greater than DGS's maximum drawdown of -61.83%. Use the drawdown chart below to compare losses from any high point for XLE and DGS.
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Drawdown Indicators
| XLE | DGS | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -71.26% | -61.83% | -9.43% |
Max Drawdown (1Y)Largest decline over 1 year | -12.05% | -10.06% | -1.99% |
Max Drawdown (3Y)Largest decline over 3 years | -20.14% | -19.31% | -0.83% |
Max Drawdown (5Y)Largest decline over 5 years | -26.04% | -24.86% | -1.18% |
Max Drawdown (10Y)Largest decline over 10 years | -66.81% | -44.08% | -22.73% |
Current DrawdownCurrent decline from peak | -8.01% | -1.05% | -6.96% |
Average DrawdownAverage peak-to-trough decline | -17.97% | -12.57% | -5.40% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.32% | 3.05% | +1.27% |
Volatility
XLE vs. DGS - Volatility Comparison
State Street Energy Select Sector SPDR ETF (XLE) and WisdomTree Emerging Markets SmallCap Dividend Fund (DGS) have volatilities of 7.26% and 7.30%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| XLE | DGS | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.26% | 7.30% | -0.04% |
Volatility (6M)Calculated over the trailing 6-month period | 16.79% | 14.27% | +2.52% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.57% | 16.60% | +3.97% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.05% | 15.08% | +10.97% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.58% | 17.39% | +12.19% |
XLE vs. DGS - Expense Ratio Comparison
XLE has a 0.08% expense ratio, which is lower than DGS's 0.58% expense ratio.
Dividends
XLE vs. DGS - Dividend Comparison
XLE's dividend yield for the trailing twelve months is around 2.59%, less than DGS's 3.20% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DGS WisdomTree Emerging Markets SmallCap Dividend Fund | 3.20% | 3.45% | 3.36% | 4.55% | 5.34% | 3.98% | 3.69% | 3.95% | 4.24% | 2.81% | 3.42% | 3.28% |
XLE State Street Energy Select Sector SPDR ETF | 2.59% | 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
XLE and DGS 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.
DGS has higher volatility (7.30%) compared to XLE (7.26%). In terms of maximum drawdown, XLE dropped -71.26% vs DGS's -61.83%.
On 10-year performance, DGS leads with 10.14% vs 9.91% for XLE. On fees, XLE is cheaper at 0.08% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, DGS has performed better with a 10.14% return vs 9.91%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
XLE is cheaper with a 0.08% expense ratio, compared with 0.58% for DGS.
DGS has the higher dividend yield at 3.20%, compared with 2.59% for XLE.
XLE is categorized as Energy Equities, while DGS is Emerging Markets Diversified. XLE tracks Energy Select Sector Index, while DGS tracks WisdomTree Emerging Markets SmallCap Dividend Index. They also come from different issuers: State Street and WisdomTree. Their fees differ too: 0.08% for XLE and 0.58% for DGS.
XLE currently has the higher Sharpe Ratio (1.82 vs 1.44), 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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