XYLD vs. VDE

Last updated Jul 26, 2026

XYLD (Global X S&P 500 Covered Call ETF) and VDE (Vanguard Energy ETF) are both exchange-traded funds - XYLD is a Derivative Income fund tracking the Cboe S&P 500 BuyWrite Index, while VDE is a Energy Equities fund tracking the MSCI US Investable Market Energy 25/50 Index. Both are passively managed. Over the past 10 years, XYLD returned 8.14%/yr vs 9.81%/yr for VDE. Their 0.43 correlation means their historical movements had little consistent relationship. XYLD charges 0.60%/yr vs 0.09%/yr for VDE.

Performance

XYLD vs. VDE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Global X S&P 500 Covered Call ETF (XYLD) and Vanguard Energy ETF (VDE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XYLD achieves a 6.98% return, which is significantly lower than VDE's 35.27% return. Over the past 10 years, XYLD has underperformed VDE with an annualized return of 8.14%, while VDE has yielded a comparatively higher 9.81% annualized return.

XYLD

• 1D: 0.15%
• 1M: 2.28%
• 6M: 6.06%
• YTD: 6.98%
• 1Y: 16.60%
• 3Y*: 11.30%
• 5Y*: 7.72%
• 10Y*: 8.14%
• ALL TIME*: 8.30%

VDE

• 1D: 0.04%
• 1M: 10.29%
• 6M: 22.82%
• YTD: 35.27%
• 1Y: 41.64%
• 3Y*: 15.31%
• 5Y*: 24.05%
• 10Y*: 9.81%
• ALL TIME*: 8.35%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VDE Vanguard Energy ETF	$71.54M	$103.66M	$111.94M
XYLD Global X S&P 500 Covered Call ETF	$39.54M	$38.84M	$31.76M

XYLD vs. VDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XYLD Global X S&P 500 Covered Call ETF	6.98%	8.02%	19.49%	11.10%	-12.05%	19.59%	-0.56%	21.41%	-6.09%	16.49%
VDE Vanguard Energy ETF	35.27%	7.11%	6.75%	0.03%	62.89%	56.31%	-33.02%	9.28%	-19.95%	-2.50%

Correlation

The correlation between XYLD and VDE is -0.10, meaning they have often moved in opposite directions in the past. This relationship can weaken or reverse as market conditions change.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	-0.10
Correlation (3Y) Balances recent behavior with more history.	0.14
Correlation (5Y) Shows whether the relationship held over a longer period.	0.27
Correlation (10Y) Provides a long-term view across more market conditions.	0.39
Correlation (All Time) Calculated using the full available price history since Jun 24, 2013	0.43

The correlation between XYLD and VDE shifts across timeframes, from -0.10 (1 year) to 0.43 (all time), reflecting how their relationship changes across market environments.

XYLD vs. VDE - Sectors Allocation Comparison

Sectors	XYLD	VDE
Technology	38.5%	-
Financial Services	11.6%	-
Communication Services	9.9%	-
Consumer Cyclical	9.5%	-
Healthcare	8.9%	-
Industrials	8.4%	0.2%
Consumer Defensive	4.5%	-
Energy	3.0%	77.0%
Utilities	2.2%	0.1%
Real Estate	1.8%	-
Basic Materials	1.7%	0.4%

Return for Risk

XYLD vs. VDE — Risk / Return Rank

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

XYLD

XYLD Risk / Return Rank: 91
XYLD Sharpe Ratio Rank: 93
XYLD Sortino Ratio Rank: 93
XYLD Omega Ratio Rank: 95
XYLD Calmar Ratio Rank: 84
XYLD Martin Ratio Rank: 93

VDE

VDE Risk / Return Rank: 75
VDE Sharpe Ratio Rank: 85
VDE Sortino Ratio Rank: 79
VDE Omega Ratio Rank: 76
VDE Calmar Ratio Rank: 75
VDE Martin Ratio Rank: 61

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.

XYLD vs. VDE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Global X S&P 500 Covered Call ETF (XYLD) and Vanguard Energy ETF (VDE). 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.

	XYLD	VDE	Difference
Sharpe ratio: Return per unit of total volatility	2.43	1.98	+0.44
Sortino ratio: Return per unit of downside risk	3.45	2.57	+0.89
Omega ratio: Gain probability vs. loss probability	1.54	1.32	+0.22
Calmar ratio: Return relative to maximum drawdown	3.20	2.74	+0.47
Martin ratio: Return relative to average drawdown	16.66	7.34	+9.31

XYLD vs. VDE - Sharpe Ratio Comparison

The current XYLD Sharpe Ratio is 2.43, which is comparable to the VDE Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of XYLD and VDE, 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

XYLD vs. VDE - Drawdown Comparison

The maximum XYLD drawdown since its inception was -33.46%, smaller than the maximum VDE drawdown of -74.20%. Use the drawdown chart below to compare losses from any high point for XYLD and VDE.

Drawdown Indicators

	XYLD	VDE	Difference
Max Drawdown Largest peak-to-trough decline	-33.46%	-74.20%	+40.74%
Max Drawdown (1Y) Largest decline over 1 year	-5.29%	-15.04%	+9.75%
Max Drawdown (3Y) Largest decline over 3 years	-15.53%	-21.41%	+5.88%
Max Drawdown (5Y) Largest decline over 5 years	-18.66%	-26.58%	+7.92%
Max Drawdown (10Y) Largest decline over 10 years	-33.46%	-69.29%	+35.83%
Current Drawdown Current decline from peak	-0.51%	-4.29%	+3.78%
Average Drawdown Average peak-to-trough decline	-3.68%	-19.90%	+16.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.01%	5.59%	-4.58%

Volatility

XYLD vs. VDE - Volatility Comparison

The current volatility for Global X S&P 500 Covered Call ETF (XYLD) is 1.57%, while Vanguard Energy ETF (VDE) has a volatility of 5.13%. This indicates that XYLD experiences smaller price fluctuations and is considered to be less risky than VDE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XYLD	VDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.57%	5.13%	-3.56%
Volatility (6M) Calculated over the trailing 6-month period	5.80%	16.34%	-10.54%
Volatility (1Y) Calculated over the trailing 1-year period	6.98%	20.76%	-13.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	11.25%	26.14%	-14.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.15%	29.90%	-15.75%

XYLD vs. VDE - Expense Ratio Comparison

XYLD has a 0.60% expense ratio, which is higher than VDE's 0.09% expense ratio.

Dividends

XYLD vs. VDE - Dividend Comparison

XYLD's dividend yield for the trailing twelve months is around 10.63%, more than VDE's 2.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VDE Vanguard Energy ETF	2.39%	3.11%	3.23%	3.34%	3.65%	4.13%	4.76%	3.42%	3.35%	2.90%	2.31%	3.17%
XYLD Global X S&P 500 Covered Call ETF	10.63%	10.51%	11.54%	10.51%	13.43%	9.07%	7.93%	5.76%	7.12%	5.18%	3.23%	4.65%

Frequently Asked Questions

Can I hold both XYLD and VDE in my portfolio?

XYLD and VDE have a correlation of -0.10, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XYLD or VDE?

VDE has higher volatility (5.13%) compared to XYLD (1.57%). In terms of maximum drawdown, XYLD dropped -33.46% vs VDE's -74.20%.

Which ETF is better, XYLD or VDE?

On 10-year performance, VDE leads with 9.81% vs 8.14% for XYLD. On fees, VDE is cheaper at 0.09% per year. On volatility, XYLD has been the lower-risk option at 1.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XYLD or VDE?

Over the 10-year period, VDE has performed better with a 9.81% return vs 8.14%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XYLD or VDE?

VDE is cheaper with a 0.09% expense ratio, compared with 0.60% for XYLD.

Which ETF pays a higher dividend yield, XYLD or VDE?

XYLD has the higher dividend yield at 10.63%, compared with 2.39% for VDE.

What is the main difference between XYLD and VDE?

XYLD is categorized as Derivative Income, while VDE is Energy Equities. XYLD tracks Cboe S&P 500 BuyWrite Index, while VDE tracks MSCI US Investable Market Energy 25/50 Index. They also come from different issuers: Global X and Vanguard. Their fees differ too: 0.60% for XYLD and 0.09% for VDE.

Which has better risk-adjusted returns?

XYLD currently has the higher Sharpe Ratio (2.43 vs 1.98), 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.