XLE vs. XOP

Last updated Jun 25, 2026

XLE (State Street Energy Select Sector SPDR ETF) and XOP (SPDR S&P Oil & Gas Exploration & Production ETF) are both Energy Equities funds from State Street - XLE tracks the Energy Select Sector Index while XOP tracks the S&P Oil & Gas Exploration & Production Select Industry. Both are passively managed. Over the past 10 years, XLE returned 9.19%/yr vs 2.96%/yr for XOP. Their correlation of 0.92 suggests significant overlap in exposure. XLE charges 0.08%/yr vs 0.35%/yr for XOP.

Performance

XLE vs. XOP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in State Street Energy Select Sector SPDR ETF (XLE) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with XLE having a 21.47% return and XOP slightly higher at 22.29%. Over the past 10 years, XLE has outperformed XOP with an annualized return of 9.19%, while XOP has yielded a comparatively lower 2.96% annualized return.

XLE

• 1D: -1.63%
• 1M: -9.30%
• YTD: 21.47%
• 6M: 22.40%
• 1Y: 30.11%
• 3Y*: 15.10%
• 5Y*: 18.36%
• 10Y*: 9.19%

XOP

• 1D: -1.30%
• 1M: -10.57%
• YTD: 22.29%
• 6M: 22.62%
• 1Y: 22.30%
• 3Y*: 10.52%
• 5Y*: 11.58%
• 10Y*: 2.96%

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

XLE vs. XOP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XLE State Street Energy Select Sector SPDR ETF	21.47%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	22.29%	-2.15%	-1.00%	3.56%	45.37%	66.74%	-36.40%	-9.44%	-28.10%	-9.47%

Correlation

The correlation between XLE and XOP is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.90
Correlation (5Y) Calculated over the trailing 5-year period	0.92
Correlation (10Y) Calculated over the trailing 10-year period	0.91
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.92

The correlation between XLE and XOP has been stable across timeframes, ranging from 0.89 to 0.92 - a consistent structural relationship.

XLE vs. XOP - Sectors Allocation Comparison

Sectors	XLE	XOP
Energy	100.0%	96.8%
Basic Materials	-	3.2%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XLE vs. XOP — Risk / Return Rank

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

XLE

XLE Risk / Return Rank: 44
XLE Sharpe Ratio Rank: 46
XLE Sortino Ratio Rank: 42
XLE Omega Ratio Rank: 40
XLE Calmar Ratio Rank: 48
XLE Martin Ratio Rank: 43

XOP

XOP Risk / Return Rank: 24
XOP Sharpe Ratio Rank: 24
XOP Sortino Ratio Rank: 23
XOP Omega Ratio Rank: 22
XOP Calmar Ratio Rank: 27
XOP Martin Ratio Rank: 27

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. XOP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for State Street Energy Select Sector SPDR ETF (XLE) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP). 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	XOP	Difference
Sharpe ratio: Return per unit of total volatility	1.46	0.80	+0.66
Sortino ratio: Return per unit of downside risk	1.98	1.20	+0.78
Omega ratio: Gain probability vs. loss probability	1.24	1.15	+0.10
Calmar ratio: Return relative to maximum drawdown	2.15	1.21	+0.94
Martin ratio: Return relative to average drawdown	6.33	3.34	+2.99

XLE vs. XOP - Sharpe Ratio Comparison

The current XLE Sharpe Ratio is 1.46, which is higher than the XOP Sharpe Ratio of 0.80. The chart below compares the historical Sharpe Ratios of XLE and XOP, 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. XOP - Drawdown Comparison

The maximum XLE drawdown since its inception was -71.26%, smaller than the maximum XOP drawdown of -90.27%. Use the drawdown chart below to compare losses from any high point for XLE and XOP.

Drawdown Indicators

	XLE	XOP	Difference
Max Drawdown Largest peak-to-trough decline	-71.26%	-90.27%	+19.01%
Max Drawdown (1Y) Largest decline over 1 year	-14.05%	-18.50%	+4.45%
Max Drawdown (3Y) Largest decline over 3 years	-20.14%	-34.98%	+14.84%
Max Drawdown (5Y) Largest decline over 5 years	-26.04%	-34.98%	+8.94%
Max Drawdown (10Y) Largest decline over 10 years	-66.81%	-82.61%	+15.80%
Current Drawdown Current decline from peak	-13.75%	-42.84%	+29.09%
Average Drawdown Average peak-to-trough decline	-17.96%	-42.58%	+24.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.77%	6.69%	-1.92%

Volatility

XLE vs. XOP - Volatility Comparison

The current volatility for State Street Energy Select Sector SPDR ETF (XLE) is 7.16%, while SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has a volatility of 8.96%. This indicates that XLE experiences smaller price fluctuations and is considered to be less risky than XOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XLE	XOP	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.16%	8.96%	-1.80%
Volatility (6M) Calculated over the trailing 6-month period	16.92%	22.01%	-5.09%
Volatility (1Y) Calculated over the trailing 1-year period	20.83%	28.09%	-7.26%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.99%	33.88%	-7.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.60%	40.25%	-10.65%

XLE vs. XOP - Expense Ratio Comparison

XLE has a 0.08% expense ratio, which is lower than XOP's 0.35% expense ratio.

Dividends

XLE vs. XOP - Dividend Comparison

XLE's dividend yield for the trailing twelve months is around 2.83%, more than XOP's 2.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLE State Street Energy Select Sector SPDR ETF	2.83%	3.28%	3.36%	3.55%	3.68%	4.21%	5.62%	6.72%	3.54%	3.03%	2.26%	3.39%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	2.12%	2.62%	2.45%	2.63%	2.47%	1.61%	2.34%	1.47%	0.99%	0.76%	0.76%	2.21%

Frequently Asked Questions

Can I hold both XLE and XOP in my portfolio?

XLE and XOP have a correlation of 0.89, 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 XOP?

XOP has higher volatility (8.96%) compared to XLE (7.16%). In terms of maximum drawdown, XLE dropped -71.26% vs XOP's -90.27%.

Which ETF is better, XLE or XOP?

On 10-year performance, XLE leads with 9.19% vs 2.96% for XOP. On fees, XLE is cheaper at 0.08% per year. On volatility, XLE has been the lower-risk option at 7.16%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XLE or XOP?

Over the 10-year period, XLE has performed better with a 9.19% return vs 2.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XLE or XOP?

XLE is cheaper with a 0.08% expense ratio, compared with 0.35% for XOP.

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

XLE has the higher dividend yield at 2.83%, compared with 2.12% for XOP.

What is the main difference between XLE and XOP?

XLE tracks Energy Select Sector Index, while XOP tracks S&P Oil & Gas Exploration & Production Select Industry. Their fees differ too: 0.08% for XLE and 0.35% for XOP.

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (1.46 vs 0.80), 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.