XLE vs. ERX

Last updated Jun 5, 2026

XLE (State Street Energy Select Sector SPDR ETF) and ERX (Direxion Daily Energy Bull 2X Shares) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector Index, while ERX is a Leveraged Equities fund tracking the Energy Select Sector Index (300%). Both are passively managed. Over the past 10 years, XLE returned 9.99%/yr vs -9.37%/yr for ERX. With a 0.99 correlation, they move nearly in lockstep. XLE charges 0.08%/yr vs 1.09%/yr for ERX.

Performance

XLE vs. ERX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Energy Select Sector SPDR ETF (XLE) and Direxion Daily Energy Bull 2X Shares (ERX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLE achieves a 32.26% return, which is significantly lower than ERX's 66.84% return. Over the past 10 years, XLE has outperformed ERX with an annualized return of 9.99%, while ERX has yielded a comparatively lower -9.37% annualized return.

XLE

• 1D: 0.07%
• 1M: -1.18%
• YTD: 32.26%
• 6M: 29.34%
• 1Y: 47.98%
• 3Y*: 17.74%
• 5Y*: 20.45%
• 10Y*: 9.99%

ERX

• 1D: -0.05%
• 1M: -3.57%
• YTD: 66.84%
• 6M: 58.30%
• 1Y: 98.14%
• 3Y*: 24.19%
• 5Y*: 28.74%
• 10Y*: -9.37%

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

XLE vs. ERX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLE State Street Energy Select Sector SPDR ETF	32.26%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%
ERX Direxion Daily Energy Bull 2X Shares	66.84%	2.79%	1.09%	-12.26%	130.58%	111.91%	-91.60%	17.13%	-55.94%	-11.60%

Correlation

The correlation between XLE and ERX is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	0.99
Correlation (All Time) Calculated using the full available price history since Nov 20, 2008	0.99

The correlation between XLE and ERX has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

XLE vs. ERX - Sectors Allocation Comparison

Sectors	XLE	ERX
Energy	100.0%	100.0%
Basic Materials	-	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XLE vs. ERX — Risk / Return Rank

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

XLE

XLE Risk / Return Rank: 70
XLE Sharpe Ratio Rank: 74
XLE Sortino Ratio Rank: 67
XLE Omega Ratio Rank: 64
XLE Calmar Ratio Rank: 79
XLE Martin Ratio Rank: 65

ERX

ERX Risk / Return Rank: 68
ERX Sharpe Ratio Rank: 76
ERX Sortino Ratio Rank: 60
ERX Omega Ratio Rank: 58
ERX Calmar Ratio Rank: 82
ERX 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.

XLE vs. ERX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) and Direxion Daily Energy Bull 2X Shares (ERX). 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.

	XLE	ERX	Difference
Sharpe ratio: Return per unit of total volatility	2.36	2.42	-0.05
Sortino ratio: Return per unit of downside risk	3.01	2.79	+0.23
Omega ratio: Gain probability vs. loss probability	1.38	1.35	+0.03
Calmar ratio: Return relative to maximum drawdown	4.00	4.23	-0.23
Martin ratio: Return relative to average drawdown	11.60	11.45	+0.15
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XLE vs. ERX - Sharpe Ratio Comparison

The current XLE Sharpe Ratio is 2.36, which is comparable to the ERX Sharpe Ratio of 2.42. The chart below compares the historical Sharpe Ratios of XLE and ERX, 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

	XLE	ERX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.36	2.42	-0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.79	0.56	+0.23
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.34	-0.14	+0.47
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	-0.09	+0.40

Drawdowns

XLE vs. ERX - Drawdown Comparison

The maximum XLE drawdown since its inception was -71.26%, smaller than the maximum ERX drawdown of -99.54%. Use the drawdown chart below to compare losses from any high point for XLE and ERX.

Drawdown Indicators

	XLE	ERX	Difference
Max Drawdown Largest peak-to-trough decline	-71.26%	-99.54%	+28.28%
Max Drawdown (1Y) Largest decline over 1 year	-12.05%	-23.34%	+11.29%
Max Drawdown (3Y) Largest decline over 3 years	-20.14%	-42.34%	+22.20%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-46.90%	+20.86%
Max Drawdown (10Y) Largest decline over 10 years	-66.81%	-98.59%	+31.78%
Current Drawdown Current decline from peak	-6.09%	-91.58%	+85.49%
Average Drawdown Average peak-to-trough decline	-17.98%	-67.03%	+49.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.15%	8.60%	-4.45%

Volatility

XLE vs. ERX - Volatility Comparison

The current volatility for State Street Energy Select Sector SPDR ETF (XLE) is 8.25%, while Direxion Daily Energy Bull 2X Shares (ERX) has a volatility of 16.49%. This indicates that XLE experiences smaller price fluctuations and is considered to be less risky than ERX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLE	ERX	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.25%	16.49%	-8.24%
Volatility (6M) Calculated over the trailing 6-month period	16.51%	33.31%	-16.80%
Volatility (1Y) Calculated over the trailing 1-year period	20.50%	41.08%	-20.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.01%	51.98%	-25.97%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.58%	69.16%	-39.58%

XLE vs. ERX - Expense Ratio Comparison

XLE has a 0.08% expense ratio, which is lower than ERX's 1.09% expense ratio.

Dividends

XLE vs. ERX - Dividend Comparison

XLE's dividend yield for the trailing twelve months is around 2.54%, more than ERX's 1.61% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ERX Direxion Daily Energy Bull 2X Shares	1.61%	2.54%	2.94%	3.17%	2.23%	2.16%	2.35%	1.56%	3.10%	0.85%	0.00%	0.00%
XLE State Street Energy Select Sector SPDR ETF	2.54%	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 XLE and ERX in my portfolio?

With a correlation of 1.00, XLE and ERX move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XLE or ERX?

ERX has higher volatility (16.49%) compared to XLE (8.25%). In terms of maximum drawdown, XLE dropped -71.26% vs ERX's -99.54%.

Which ETF is better, XLE or ERX?

On 10-year performance, XLE leads with 9.99% vs -9.37% for ERX. On fees, XLE is cheaper at 0.08% per year. On volatility, XLE has been the lower-risk option at 8.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLE or ERX?

Over the 10-year period, XLE has performed better with a 9.99% return vs -9.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLE or ERX?

XLE is cheaper with a 0.08% expense ratio, compared with 1.09% for ERX.

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

XLE has the higher dividend yield at 2.54%, compared with 1.61% for ERX.

What is the main difference between XLE and ERX?

XLE is categorized as Energy Equities, while ERX is Leveraged Equities. XLE tracks Energy Select Sector Index, while ERX tracks Energy Select Sector Index (300%). They also come from different issuers: State Street and Direxion. Their fees differ too: 0.08% for XLE and 1.09% for ERX.

Which has better risk-adjusted returns?

ERX currently has the higher Sharpe Ratio (2.42 vs 2.36), 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.