XLE vs. VDE
Compare and contrast key facts about Energy Select Sector SPDR Fund (XLE) and Vanguard Energy ETF (VDE).
XLE and VDE are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLE is a passively managed fund by State Street that tracks the performance of the Energy Select Sector Index. It was launched on Dec 16, 1998. VDE is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Energy 25/50 Index. It was launched on Sep 23, 2004. Both XLE and VDE are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLE or VDE.
Key characteristics
| XLE | VDE | |
|---|---|---|
| YTD Return | 15.77% | 15.29% |
| 1Y Return | 18.13% | 17.23% |
| 3Y Return (Ann) | 22.34% | 21.74% |
| 5Y Return (Ann) | 14.98% | 15.60% |
| 10Y Return (Ann) | 5.03% | 4.41% |
| Sharpe Ratio | 0.89 | 0.82 |
| Sortino Ratio | 1.30 | 1.22 |
| Omega Ratio | 1.16 | 1.15 |
| Calmar Ratio | 1.19 | 1.11 |
| Martin Ratio | 2.77 | 2.68 |
| Ulcer Index | 5.71% | 5.56% |
| Daily Std Dev | 17.79% | 18.09% |
| Max Drawdown | -71.54% | -74.16% |
| Current Drawdown | -1.84% | -1.81% |
Correlation
The correlation between XLE and VDE is 0.99, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
XLE vs. VDE - Performance Comparison
The year-to-date returns for both stocks are quite close, with XLE having a 15.77% return and VDE slightly lower at 15.29%. Over the past 10 years, XLE has outperformed VDE with an annualized return of 5.03%, while VDE has yielded a comparatively lower 4.41% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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XLE vs. VDE - Expense Ratio Comparison
XLE has a 0.13% expense ratio, which is higher than VDE's 0.10% 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%.
Risk-Adjusted Performance
XLE vs. VDE - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Energy Select Sector SPDR Fund (XLE) 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.
Dividends
XLE vs. VDE - Dividend Comparison
XLE's dividend yield for the trailing twelve months is around 3.14%, more than VDE's 3.04% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLE Energy Select Sector SPDR Fund | 3.14% | 3.55% | 3.68% | 4.21% | 5.62% | 5.73% | 3.54% | 3.03% | 2.26% | 3.39% | 2.35% | 1.73% |
VDE Vanguard Energy ETF | 3.04% | 3.34% | 3.65% | 4.13% | 4.76% | 3.59% | 3.35% | 2.90% | 2.31% | 3.17% | 1.98% | 1.74% |
Drawdowns
XLE vs. VDE - Drawdown Comparison
The maximum XLE drawdown since its inception was -71.54%, roughly equal to the maximum VDE drawdown of -74.16%. Use the drawdown chart below to compare losses from any high point for XLE and VDE. For additional features, visit the drawdowns tool.
Volatility
XLE vs. VDE - Volatility Comparison
Energy Select Sector SPDR Fund (XLE) and Vanguard Energy ETF (VDE) have volatilities of 4.84% and 5.08%, 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.