XLE vs. VSDB

Last updated Jun 26, 2026

XLE (State Street Energy Select Sector SPDR ETF) and VSDB (Vanguard Short Duration Bond ETF Shares) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector Index, while VSDB is a Short-Term Bond fund actively managed by Vanguard. XLE is passively managed, while VSDB is actively managed. Over the past year, XLE returned 31.95% vs 4.64% for VSDB. At a correlation of -0.22, they often move in opposite directions. XLE charges 0.08%/yr vs 0.15%/yr for VSDB.

Performance

XLE vs. VSDB - 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 Short Duration Bond ETF Shares (VSDB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLE achieves a 22.65% return, which is significantly higher than VSDB's 1.23% return.

XLE

• 1D: 0.97%
• 1M: -5.83%
• YTD: 22.65%
• 6M: 23.59%
• 1Y: 31.95%
• 3Y*: 14.78%
• 5Y*: 18.58%
• 10Y*: 9.65%

VSDB

• 1D: 0.13%
• 1M: 0.40%
• YTD: 1.23%
• 6M: 1.33%
• 1Y: 4.64%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

XLE vs. VSDB - Yearly Performance Comparison

	2026 (YTD)	2025
XLE State Street Energy Select Sector SPDR ETF	22.65%	-2.59%
VSDB Vanguard Short Duration Bond ETF Shares	1.23%	4.88%

Correlation

The correlation between XLE and VSDB is -0.26, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.26
Correlation (All Time) Calculated using the full available price history since Apr 3, 2025	-0.22

Return for Risk

XLE vs. VSDB — Risk / Return Rank

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

XLE

XLE Risk / Return Rank: 49
XLE Sharpe Ratio Rank: 52
XLE Sortino Ratio Rank: 47
XLE Omega Ratio Rank: 45
XLE Calmar Ratio Rank: 54
XLE Martin Ratio Rank: 46

VSDB

VSDB Risk / Return Rank: 87
VSDB Sharpe Ratio Rank: 91
VSDB Sortino Ratio Rank: 94
VSDB Omega Ratio Rank: 93
VSDB Calmar Ratio Rank: 74
VSDB Martin Ratio Rank: 82

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. VSDB - 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 Short Duration Bond ETF Shares (VSDB). 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	VSDB	Difference
Sharpe ratio: Return per unit of total volatility	1.54	2.68	-1.14
Sortino ratio: Return per unit of downside risk	2.07	4.15	-2.08
Omega ratio: Gain probability vs. loss probability	1.25	1.55	-0.30
Calmar ratio: Return relative to maximum drawdown	2.28	3.27	-0.99
Martin ratio: Return relative to average drawdown	6.62	14.30	-7.68

XLE vs. VSDB - Sharpe Ratio Comparison

The current XLE Sharpe Ratio is 1.54, which is lower than the VSDB Sharpe Ratio of 2.68. The chart below compares the historical Sharpe Ratios of XLE and VSDB, 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. VSDB - Drawdown Comparison

The maximum XLE drawdown since its inception was -71.26%, which is greater than VSDB's maximum drawdown of -1.42%. Use the drawdown chart below to compare losses from any high point for XLE and VSDB.

Drawdown Indicators

	XLE	VSDB	Difference
Max Drawdown Largest peak-to-trough decline	-71.26%	-1.42%	-69.84%
Max Drawdown (1Y) Largest decline over 1 year	-14.05%	-1.42%	-12.63%
Max Drawdown (3Y) Largest decline over 3 years	-20.14%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-66.81%	—	—
Current Drawdown Current decline from peak	-12.92%	0.00%	-12.92%
Average Drawdown Average peak-to-trough decline	-17.96%	-0.19%	-17.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.84%	0.33%	+4.51%

Volatility

XLE vs. VSDB - Volatility Comparison

State Street Energy Select Sector SPDR ETF (XLE) has a higher volatility of 6.85% compared to Vanguard Short Duration Bond ETF Shares (VSDB) at 0.52%. This indicates that XLE's price experiences larger fluctuations and is considered to be riskier than VSDB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLE	VSDB	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.85%	0.52%	+6.33%
Volatility (6M) Calculated over the trailing 6-month period	16.92%	1.39%	+15.53%
Volatility (1Y) Calculated over the trailing 1-year period	20.80%	1.74%	+19.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.99%	1.90%	+24.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.59%	1.90%	+27.69%

XLE vs. VSDB - Expense Ratio Comparison

XLE has a 0.08% expense ratio, which is lower than VSDB's 0.15% expense ratio. Despite the difference, 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. VSDB - Dividend Comparison

XLE's dividend yield for the trailing twelve months is around 2.81%, less than VSDB's 4.15% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VSDB Vanguard Short Duration Bond ETF Shares	4.15%	3.30%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
XLE State Street Energy Select Sector SPDR ETF	2.81%	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 VSDB in my portfolio?

XLE and VSDB have a correlation of -0.26, 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 VSDB?

XLE has higher volatility (6.85%) compared to VSDB (0.52%). In terms of maximum drawdown, XLE dropped -71.26% vs VSDB's -1.42%.

Which ETF is better, XLE or VSDB?

On 1-year performance, XLE leads with 31.95% vs 4.64% for VSDB. On fees, XLE is cheaper at 0.08% per year. On volatility, VSDB has been the lower-risk option at 0.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLE or VSDB?

Over the 1-year period, XLE has performed better with a 31.95% return vs 4.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLE or VSDB?

XLE is cheaper with a 0.08% expense ratio, compared with 0.15% for VSDB.

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

VSDB has the higher dividend yield at 4.15%, compared with 2.81% for XLE.

What is the main difference between XLE and VSDB?

XLE is categorized as Energy Equities, while VSDB is Short-Term Bond. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLE and 0.15% for VSDB.

Which has better risk-adjusted returns?

VSDB currently has the higher Sharpe Ratio (2.68 vs 1.54), 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.