XLE vs. VBK

Last updated Jun 16, 2026

XLE (State Street Energy Select Sector SPDR ETF) and VBK (Vanguard Small-Cap Growth ETF) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector Index, while VBK is a Small Cap Growth Equities fund tracking the CRSP US Small Cap Growth Index. Both are passively managed. Over the past 10 years, XLE returned 9.49%/yr vs 12.03%/yr for VBK. A 0.55 correlation means they provide meaningful diversification when combined. XLE charges 0.08%/yr vs 0.05%/yr for VBK.

Performance

XLE vs. VBK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Energy Select Sector SPDR ETF (XLE) and Vanguard Small-Cap Growth ETF (VBK). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLE achieves a 25.06% return, which is significantly higher than VBK's 18.24% return. Over the past 10 years, XLE has underperformed VBK with an annualized return of 9.49%, while VBK has yielded a comparatively higher 12.03% annualized return.

XLE

• 1D: -3.48%
• 1M: -6.54%
• YTD: 25.06%
• 6M: 24.78%
• 1Y: 30.16%
• 3Y*: 14.85%
• 5Y*: 19.05%
• 10Y*: 9.49%

VBK

• 1D: 1.71%
• 1M: 5.71%
• YTD: 18.24%
• 6M: 17.85%
• 1Y: 34.10%
• 3Y*: 16.97%
• 5Y*: 5.40%
• 10Y*: 12.03%

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

XLE vs. VBK - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLE State Street Energy Select Sector SPDR ETF	25.06%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%
VBK Vanguard Small-Cap Growth ETF	18.24%	8.50%	16.50%	21.45%	-28.44%	5.66%	35.44%	32.75%	-5.70%	21.87%

Correlation

The correlation between XLE and VBK is -0.01, 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	-0.01
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.32
Correlation (10Y) Calculated over the trailing 10-year period	0.42
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.55

The correlation between XLE and VBK shifts across timeframes, from -0.01 (1 year) to 0.55 (all time), reflecting how their relationship changes across market environments.

XLE vs. VBK - Sectors Allocation Comparison

Sectors	XLE	VBK
Energy	100.0%	4.8%
Basic Materials	-	3.2%
Communication Services	-	3.5%
Consumer Cyclical	-	9.6%
Consumer Defensive	-	2.4%
Financial Services	-	5.6%
Healthcare	-	15.3%
Industrials	-	24.7%
Real Estate	-	3.9%
Technology	-	25.9%
Utilities	-	1.2%

Return for Risk

XLE vs. VBK — Risk / Return Rank

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

XLE

XLE Risk / Return Rank: 46
XLE Sharpe Ratio Rank: 46
XLE Sortino Ratio Rank: 43
XLE Omega Ratio Rank: 41
XLE Calmar Ratio Rank: 56
XLE Martin Ratio Rank: 46

VBK

VBK Risk / Return Rank: 59
VBK Sharpe Ratio Rank: 56
VBK Sortino Ratio Rank: 53
VBK Omega Ratio Rank: 51
VBK Calmar Ratio Rank: 66
VBK Martin Ratio Rank: 68

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. VBK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) and Vanguard Small-Cap Growth ETF (VBK). 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	VBK	Difference
Sharpe ratio: Return per unit of total volatility	1.46	1.72	-0.26
Sortino ratio: Return per unit of downside risk	1.97	2.35	-0.38
Omega ratio: Gain probability vs. loss probability	1.24	1.29	-0.05
Calmar ratio: Return relative to maximum drawdown	2.51	2.99	-0.48
Martin ratio: Return relative to average drawdown	6.91	11.23	-4.32

XLE vs. VBK - Sharpe Ratio Comparison

The current XLE Sharpe Ratio is 1.46, which is comparable to the VBK Sharpe Ratio of 1.72. The chart below compares the historical Sharpe Ratios of XLE and VBK, 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

XLE vs. VBK - Drawdown Comparison

The maximum XLE drawdown since its inception was -71.26%, which is greater than VBK's maximum drawdown of -58.68%. Use the drawdown chart below to compare losses from any high point for XLE and VBK.

Drawdown Indicators

	XLE	VBK	Difference
Max Drawdown Largest peak-to-trough decline	-71.26%	-58.68%	-12.58%
Max Drawdown (1Y) Largest decline over 1 year	-12.05%	-11.44%	-0.61%
Max Drawdown (3Y) Largest decline over 3 years	-20.14%	-27.54%	+7.40%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-38.39%	+12.35%
Max Drawdown (10Y) Largest decline over 10 years	-66.81%	-38.70%	-28.11%
Current Drawdown Current decline from peak	-11.21%	-0.36%	-10.85%
Average Drawdown Average peak-to-trough decline	-17.97%	-10.14%	-7.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.38%	3.04%	+1.34%

Volatility

XLE vs. VBK - Volatility Comparison

State Street Energy Select Sector SPDR ETF (XLE) has a higher volatility of 8.02% compared to Vanguard Small-Cap Growth ETF (VBK) at 7.47%. This indicates that XLE's price experiences larger fluctuations and is considered to be riskier than VBK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLE	VBK	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.02%	7.47%	+0.55%
Volatility (6M) Calculated over the trailing 6-month period	17.19%	15.66%	+1.53%
Volatility (1Y) Calculated over the trailing 1-year period	20.86%	19.99%	+0.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.10%	23.60%	+2.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.61%	22.93%	+6.68%

XLE vs. VBK - Expense Ratio Comparison

XLE has a 0.08% expense ratio, which is higher than VBK's 0.05% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

XLE vs. VBK - Dividend Comparison

XLE's dividend yield for the trailing twelve months is around 2.69%, more than VBK's 0.44% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VBK Vanguard Small-Cap Growth ETF	0.44%	0.54%	0.54%	0.68%	0.55%	0.36%	0.44%	0.57%	0.79%	0.82%	1.08%	0.98%
XLE State Street Energy Select Sector SPDR ETF	2.69%	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 VBK in my portfolio?

XLE and VBK have a correlation of -0.01, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XLE or VBK?

XLE has higher volatility (8.02%) compared to VBK (7.47%). In terms of maximum drawdown, XLE dropped -71.26% vs VBK's -58.68%.

Which ETF is better, XLE or VBK?

On 10-year performance, VBK leads with 12.03% vs 9.49% for XLE. On fees, VBK is cheaper at 0.05% per year. On volatility, VBK has been the lower-risk option at 7.47%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLE or VBK?

Over the 10-year period, VBK has performed better with a 12.03% return vs 9.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLE or VBK?

VBK is cheaper with a 0.05% expense ratio, compared with 0.08% for XLE.

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

XLE has the higher dividend yield at 2.69%, compared with 0.44% for VBK.

What is the main difference between XLE and VBK?

XLE is categorized as Energy Equities, while VBK is Small Cap Growth Equities. XLE tracks Energy Select Sector Index, while VBK tracks CRSP US Small Cap Growth Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLE and 0.05% for VBK.

Which has better risk-adjusted returns?

VBK currently has the higher Sharpe Ratio (1.72 vs 1.46), 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.