XLE vs. VOO

Last updated Jun 27, 2026

XLE (State Street Energy Select Sector SPDR ETF) and VOO (Vanguard S&P 500 ETF) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector Index, while VOO is a S&P 500 fund tracking the S&P 500 Index. Both are passively managed. Over the past 10 years, XLE returned 9.30%/yr vs 15.54%/yr for VOO. A 0.55 correlation means they provide meaningful diversification when combined. XLE charges 0.08%/yr vs 0.03%/yr for VOO.

Performance

XLE vs. VOO - 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 S&P 500 ETF (VOO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLE achieves a 22.08% return, which is significantly higher than VOO's 7.53% return. Over the past 10 years, XLE has underperformed VOO with an annualized return of 9.30%, while VOO has yielded a comparatively higher 15.54% annualized return.

XLE

• 1D: -0.46%
• 1M: -4.85%
• YTD: 22.08%
• 6M: 23.49%
• 1Y: 29.49%
• 3Y*: 14.52%
• 5Y*: 18.47%
• 10Y*: 9.30%

VOO

• 1D: -0.52%
• 1M: -2.57%
• YTD: 7.53%
• 6M: 6.22%
• 1Y: 20.58%
• 3Y*: 20.26%
• 5Y*: 12.90%
• 10Y*: 15.54%

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

XLE vs. VOO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLE State Street Energy Select Sector SPDR ETF	22.08%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%
VOO Vanguard S&P 500 ETF	7.53%	17.82%	24.98%	26.32%	-18.17%	28.79%	18.32%	31.37%	-4.50%	21.77%

Correlation

The correlation between XLE and VOO is -0.09, 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	-0.09
Correlation (3Y) Calculated over the trailing 3-year period	0.17
Correlation (5Y) Calculated over the trailing 5-year period	0.30
Correlation (10Y) Calculated over the trailing 10-year period	0.43
Correlation (All Time) Calculated using the full available price history since Sep 9, 2010	0.55

The correlation between XLE and VOO shifts across timeframes, from -0.09 (1 year) to 0.55 (all time), reflecting how their relationship changes across market environments.

XLE vs. VOO - Sectors Allocation Comparison

Sectors	XLE	VOO
Energy	100.0%	3.2%
Basic Materials	-	1.7%
Communication Services	-	10.5%
Consumer Cyclical	-	9.8%
Consumer Defensive	-	4.5%
Financial Services	-	10.9%
Healthcare	-	8.3%
Industrials	-	7.6%
Real Estate	-	1.8%
Technology	-	39.1%
Utilities	-	2.5%

Return for Risk

XLE vs. VOO — Risk / Return Rank

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

XLE

XLE Risk / Return Rank: 42
XLE Sharpe Ratio Rank: 44
XLE Sortino Ratio Rank: 41
XLE Omega Ratio Rank: 39
XLE Calmar Ratio Rank: 47
XLE Martin Ratio Rank: 41

VOO

VOO Risk / Return Rank: 55
VOO Sharpe Ratio Rank: 55
VOO Sortino Ratio Rank: 52
VOO Omega Ratio Rank: 54
VOO Calmar Ratio Rank: 53
VOO 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. VOO - 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 S&P 500 ETF (VOO). 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	VOO	Difference
Sharpe ratio: Return per unit of total volatility	1.43	1.67	-0.24
Sortino ratio: Return per unit of downside risk	1.94	2.30	-0.35
Omega ratio: Gain probability vs. loss probability	1.24	1.30	-0.07
Calmar ratio: Return relative to maximum drawdown	2.11	2.32	-0.21
Martin ratio: Return relative to average drawdown	6.02	10.21	-4.19

XLE vs. VOO - Sharpe Ratio Comparison

The current XLE Sharpe Ratio is 1.43, which is comparable to the VOO Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of XLE and VOO, 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. VOO - Drawdown Comparison

The maximum XLE drawdown since its inception was -71.26%, which is greater than VOO's maximum drawdown of -33.99%. Use the drawdown chart below to compare losses from any high point for XLE and VOO.

Drawdown Indicators

	XLE	VOO	Difference
Max Drawdown Largest peak-to-trough decline	-71.26%	-33.99%	-37.27%
Max Drawdown (1Y) Largest decline over 1 year	-14.05%	-8.90%	-5.15%
Max Drawdown (3Y) Largest decline over 3 years	-20.14%	-18.69%	-1.45%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-24.52%	-1.52%
Max Drawdown (10Y) Largest decline over 10 years	-66.81%	-33.99%	-32.82%
Current Drawdown Current decline from peak	-13.32%	-3.73%	-9.59%
Average Drawdown Average peak-to-trough decline	-17.96%	-3.68%	-14.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.91%	2.02%	+2.89%

Volatility

XLE vs. VOO - Volatility Comparison

State Street Energy Select Sector SPDR ETF (XLE) has a higher volatility of 6.74% compared to Vanguard S&P 500 ETF (VOO) at 4.76%. This indicates that XLE's price experiences larger fluctuations and is considered to be riskier than VOO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLE	VOO	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.74%	4.76%	+1.98%
Volatility (6M) Calculated over the trailing 6-month period	16.92%	9.78%	+7.14%
Volatility (1Y) Calculated over the trailing 1-year period	20.80%	12.40%	+8.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.98%	16.90%	+9.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.58%	18.01%	+11.57%

XLE vs. VOO - Expense Ratio Comparison

XLE has a 0.08% expense ratio, which is higher than VOO's 0.03% 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. VOO - Dividend Comparison

XLE's dividend yield for the trailing twelve months is around 2.82%, more than VOO's 1.36% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VOO Vanguard S&P 500 ETF	1.36%	1.13%	1.24%	1.46%	1.69%	1.25%	1.54%	1.88%	2.06%	1.78%	2.02%	2.10%
XLE State Street Energy Select Sector SPDR ETF	2.82%	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 VOO in my portfolio?

XLE and VOO have a correlation of -0.09, 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 VOO?

XLE has higher volatility (6.74%) compared to VOO (4.76%). In terms of maximum drawdown, XLE dropped -71.26% vs VOO's -33.99%.

Which ETF is better, XLE or VOO?

On 10-year performance, VOO leads with 15.54% vs 9.30% for XLE. On fees, VOO is cheaper at 0.03% per year. On volatility, VOO has been the lower-risk option at 4.76%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLE or VOO?

Over the 10-year period, VOO has performed better with a 15.54% return vs 9.30%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLE or VOO?

VOO is cheaper with a 0.03% expense ratio, compared with 0.08% for XLE.

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

XLE has the higher dividend yield at 2.82%, compared with 1.36% for VOO.

What is the main difference between XLE and VOO?

XLE is categorized as Energy Equities, while VOO is S&P 500. XLE tracks Energy Select Sector Index, while VOO tracks S&P 500 Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLE and 0.03% for VOO.

Which has better risk-adjusted returns?

VOO currently has the higher Sharpe Ratio (1.67 vs 1.43), 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.