XOP vs. XLE

Last updated Jun 4, 2026

XOP (SPDR S&P Oil & Gas Exploration & Production ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both Energy Equities funds from State Street - XOP tracks the S&P Oil & Gas Exploration & Production Select Industry while XLE tracks the Energy Select Sector Index. Both are passively managed. Over the past 10 years, XOP returned 3.80%/yr vs 10.22%/yr for XLE. Their correlation of 0.91 suggests significant overlap in exposure. XOP charges 0.35%/yr vs 0.08%/yr for XLE.

Performance

XOP vs. XLE - Performance Comparison

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

Returns By Period

In the year-to-date period, XOP achieves a 36.08% return, which is significantly higher than XLE's 32.17% return. Over the past 10 years, XOP has underperformed XLE with an annualized return of 3.80%, while XLE has yielded a comparatively higher 10.22% annualized return.

XOP

• 1D: 1.35%
• 1M: -5.46%
• YTD: 36.08%
• 6M: 26.81%
• 1Y: 41.73%
• 3Y*: 14.10%
• 5Y*: 14.86%
• 10Y*: 3.80%

XLE

• 1D: 1.29%
• 1M: -1.14%
• YTD: 32.17%
• 6M: 29.80%
• 1Y: 45.00%
• 3Y*: 17.46%
• 5Y*: 20.44%
• 10Y*: 10.22%

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

XOP vs. XLE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XOP SPDR S&P Oil & Gas Exploration & Production ETF	36.08%	-2.15%	-1.00%	3.56%	45.37%	66.74%	-36.40%	-9.44%	-28.10%	-9.47%
XLE State Street Energy Select Sector SPDR ETF	32.17%	7.88%	5.56%	-0.63%	64.32%	53.28%	-32.67%	11.74%	-18.22%	-0.89%

Correlation

The correlation between XOP and XLE is 0.88, 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	0.88
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 23, 2006	0.91

The correlation between XOP and XLE has been stable across timeframes, ranging from 0.88 to 0.92 - a consistent structural relationship.

XOP vs. XLE - Sectors Allocation Comparison

Sectors	XOP	XLE
Energy	97.2%	100.0%
Basic Materials	2.9%	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

XOP vs. XLE — Risk / Return Rank

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

XOP

XOP Risk / Return Rank: 43
XOP Sharpe Ratio Rank: 42
XOP Sortino Ratio Rank: 38
XOP Omega Ratio Rank: 37
XOP Calmar Ratio Rank: 55
XOP Martin Ratio Rank: 43

XLE

XLE Risk / Return Rank: 63
XLE Sharpe Ratio Rank: 65
XLE Sortino Ratio Rank: 59
XLE Omega Ratio Rank: 56
XLE Calmar Ratio Rank: 73
XLE Martin Ratio Rank: 60

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.

XOP vs. XLE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Oil & Gas Exploration & Production ETF (XOP) and State Street Energy Select Sector SPDR ETF (XLE). 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.

	XOP	XLE	Difference
Sharpe ratio: Return per unit of total volatility	1.51	2.21	-0.69
Sortino ratio: Return per unit of downside risk	2.00	2.84	-0.84
Omega ratio: Gain probability vs. loss probability	1.25	1.35	-0.11
Calmar ratio: Return relative to maximum drawdown	2.77	3.75	-0.98
Martin ratio: Return relative to average drawdown	7.10	10.92	-3.82
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

XOP vs. XLE - Sharpe Ratio Comparison

The current XOP Sharpe Ratio is 1.51, which is lower than the XLE Sharpe Ratio of 2.21. The chart below compares the historical Sharpe Ratios of XOP and XLE, 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

	XOP	XLE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.51	2.21	-0.69
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.44	0.79	-0.35
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.09	0.35	-0.25
Sharpe Ratio (All Time) Calculated using the full available price history	0.06	0.31	-0.25

Drawdowns

XOP vs. XLE - Drawdown Comparison

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

Drawdown Indicators

	XOP	XLE	Difference
Max Drawdown Largest peak-to-trough decline	-90.27%	-71.26%	-19.01%
Max Drawdown (1Y) Largest decline over 1 year	-15.14%	-12.05%	-3.09%
Max Drawdown (3Y) Largest decline over 3 years	-34.98%	-20.14%	-14.84%
Max Drawdown (5Y) Largest decline over 5 years	-34.98%	-26.04%	-8.94%
Max Drawdown (10Y) Largest decline over 10 years	-82.61%	-66.81%	-15.80%
Current Drawdown Current decline from peak	-36.40%	-6.15%	-30.25%
Average Drawdown Average peak-to-trough decline	-42.59%	-17.98%	-24.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.90%	4.14%	+1.76%

Volatility

XOP vs. XLE - Volatility Comparison

SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has a higher volatility of 10.03% compared to State Street Energy Select Sector SPDR ETF (XLE) at 8.25%. This indicates that XOP's price experiences larger fluctuations and is considered to be riskier than XLE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XOP	XLE	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.03%	8.25%	+1.78%
Volatility (6M) Calculated over the trailing 6-month period	21.64%	16.58%	+5.06%
Volatility (1Y) Calculated over the trailing 1-year period	27.81%	20.53%	+7.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.88%	26.02%	+7.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.28%	29.59%	+10.69%

XOP vs. XLE - Expense Ratio Comparison

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

Dividends

XOP vs. XLE - Dividend Comparison

XOP's dividend yield for the trailing twelve months is around 1.90%, less than XLE's 2.54% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
XLE State Street Energy Select Sector SPDR ETF	2.54%	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	1.90%	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 XOP and XLE in my portfolio?

XOP and XLE have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XOP or XLE?

XOP has higher volatility (10.03%) compared to XLE (8.25%). In terms of maximum drawdown, XOP dropped -90.27% vs XLE's -71.26%.

Which ETF is better, XOP or XLE?

On 10-year performance, XLE leads with 10.22% vs 3.80% for XOP. On fees, XLE is cheaper at 0.08% per year. On volatility, XLE has been the lower-risk option at 8.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XOP or XLE?

Over the 10-year period, XLE has performed better with a 10.22% return vs 3.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XOP or XLE?

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

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

XLE has the higher dividend yield at 2.54%, compared with 1.90% for XOP.

What is the main difference between XOP and XLE?

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

Which has better risk-adjusted returns?

XLE currently has the higher Sharpe Ratio (2.21 vs 1.51), 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.