XLE vs. VTV

Last updated Jun 9, 2026

XLE (State Street Energy Select Sector SPDR ETF) and VTV (Vanguard Value ETF) are both exchange-traded funds - XLE is a Energy Equities fund tracking the Energy Select Sector Index, while VTV is a Large Cap Value Equities fund tracking the CRSP US Large Cap Value Index. Both are passively managed. Over the past 10 years, XLE returned 10.02%/yr vs 12.42%/yr for VTV. A 0.66 correlation means they provide meaningful diversification when combined. XLE charges 0.08%/yr vs 0.04%/yr for VTV.

Performance

XLE vs. VTV - 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 Value ETF (VTV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XLE achieves a 31.32% return, which is significantly higher than VTV's 11.91% return. Over the past 10 years, XLE has underperformed VTV with an annualized return of 10.02%, while VTV has yielded a comparatively higher 12.42% annualized return.

XLE

• 1D: 1.14%
• 1M: 4.72%
• YTD: 31.32%
• 6M: 30.37%
• 1Y: 44.35%
• 3Y*: 16.51%
• 5Y*: 20.33%
• 10Y*: 10.02%

VTV

• 1D: 0.25%
• 1M: 2.67%
• YTD: 11.91%
• 6M: 13.41%
• 1Y: 25.49%
• 3Y*: 17.72%
• 5Y*: 11.30%
• 10Y*: 12.42%

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

XLE vs. VTV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLE State Street Energy Select Sector SPDR ETF	31.32%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%
VTV Vanguard Value ETF	11.91%	15.27%	15.95%	9.32%	-2.09%	26.53%	2.33%	25.66%	-5.47%	17.15%

Correlation

The correlation between XLE and VTV is 0.21, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.21
Correlation (3Y) Calculated over the trailing 3-year period	0.44
Correlation (5Y) Calculated over the trailing 5-year period	0.52
Correlation (10Y) Calculated over the trailing 10-year period	0.61
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.66

Over the past year, the correlation between XLE and VTV has dropped to 0.21 - well below their long-term average of 0.66, suggesting their price drivers have been diverging.

XLE vs. VTV - Sectors Allocation Comparison

Sectors	XLE	VTV
Energy	100.0%	8.1%
Basic Materials	-	3.1%
Communication Services	-	3.3%
Consumer Cyclical	-	4.0%
Consumer Defensive	-	9.4%
Financial Services	-	22.3%
Healthcare	-	14.5%
Industrials	-	14.0%
Real Estate	-	2.8%
Technology	-	13.4%
Utilities	-	5.2%

Return for Risk

XLE vs. VTV — 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: 75
XLE Sortino Ratio Rank: 68
XLE Omega Ratio Rank: 65
XLE Calmar Ratio Rank: 79
XLE Martin Ratio Rank: 64

VTV

VTV Risk / Return Rank: 84
VTV Sharpe Ratio Rank: 85
VTV Sortino Ratio Rank: 87
VTV Omega Ratio Rank: 83
VTV Calmar Ratio Rank: 83
VTV Martin Ratio Rank: 83

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. VTV - 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 Value ETF (VTV). 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	VTV	Difference
Sharpe ratio: Return per unit of total volatility	2.18	2.52	-0.34
Sortino ratio: Return per unit of downside risk	2.81	3.58	-0.77
Omega ratio: Gain probability vs. loss probability	1.35	1.45	-0.10
Calmar ratio: Return relative to maximum drawdown	3.70	4.03	-0.33
Martin ratio: Return relative to average drawdown	10.59	15.20	-4.61
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. VTV - Sharpe Ratio Comparison

The current XLE Sharpe Ratio is 2.18, which is comparable to the VTV Sharpe Ratio of 2.52. The chart below compares the historical Sharpe Ratios of XLE and VTV, 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	VTV	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.18	2.52	-0.34
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.79	0.82	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.34	0.75	-0.41
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.51	-0.20

Drawdowns

XLE vs. VTV - Drawdown Comparison

The maximum XLE drawdown since its inception was -71.26%, which is greater than VTV's maximum drawdown of -59.27%. Use the drawdown chart below to compare losses from any high point for XLE and VTV.

Drawdown Indicators

	XLE	VTV	Difference
Max Drawdown Largest peak-to-trough decline	-71.26%	-59.27%	-11.99%
Max Drawdown (1Y) Largest decline over 1 year	-12.05%	-6.35%	-5.70%
Max Drawdown (3Y) Largest decline over 3 years	-20.14%	-14.52%	-5.62%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-17.04%	-9.00%
Max Drawdown (10Y) Largest decline over 10 years	-66.81%	-36.78%	-30.03%
Current Drawdown Current decline from peak	-6.76%	-1.11%	-5.65%
Average Drawdown Average peak-to-trough decline	-17.98%	-7.87%	-10.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.20%	1.68%	+2.52%

Volatility

XLE vs. VTV - Volatility Comparison

State Street Energy Select Sector SPDR ETF (XLE) has a higher volatility of 7.07% compared to Vanguard Value ETF (VTV) at 2.65%. This indicates that XLE's price experiences larger fluctuations and is considered to be riskier than VTV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLE	VTV	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.07%	2.65%	+4.42%
Volatility (6M) Calculated over the trailing 6-month period	16.58%	7.67%	+8.91%
Volatility (1Y) Calculated over the trailing 1-year period	20.48%	10.18%	+10.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.03%	13.89%	+12.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.58%	16.68%	+12.90%

XLE vs. VTV - Expense Ratio Comparison

XLE has a 0.08% expense ratio, which is higher than VTV's 0.04% 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. VTV - Dividend Comparison

XLE's dividend yield for the trailing twelve months is around 2.56%, more than VTV's 1.87% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VTV Vanguard Value ETF	1.87%	2.05%	2.31%	2.46%	2.52%	2.15%	2.56%	2.50%	2.73%	2.29%	2.44%	2.60%
XLE State Street Energy Select Sector SPDR ETF	2.56%	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 VTV in my portfolio?

XLE and VTV have a correlation of 0.21, 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 VTV?

XLE has higher volatility (7.07%) compared to VTV (2.65%). In terms of maximum drawdown, XLE dropped -71.26% vs VTV's -59.27%.

Which ETF is better, XLE or VTV?

On 10-year performance, VTV leads with 12.42% vs 10.02% for XLE. On fees, VTV is cheaper at 0.04% per year. On volatility, VTV has been the lower-risk option at 2.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLE or VTV?

Over the 10-year period, VTV has performed better with a 12.42% return vs 10.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLE or VTV?

VTV is cheaper with a 0.04% expense ratio, compared with 0.08% for XLE.

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

XLE has the higher dividend yield at 2.56%, compared with 1.87% for VTV.

What is the main difference between XLE and VTV?

XLE is categorized as Energy Equities, while VTV is Large Cap Value Equities. XLE tracks Energy Select Sector Index, while VTV tracks CRSP US Large Cap Value Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.08% for XLE and 0.04% for VTV.

Which has better risk-adjusted returns?

VTV currently has the higher Sharpe Ratio (2.52 vs 2.18), 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.