XLE vs VDE Stock Comparison: AI Score, Valuation, Performance and Upside
XLE and VDE provide nearly identical energy sector exposure at nearly identical cost, but VDE is broader (110 holdings vs XLE's 20–25) and includes mid and small-cap energy companies that XLE excludes through its S&P 500 filter. In practice, the two ETFs are highly correlated because both are dominated by ExxonMobil and Chevron, but VDE gives slightly more exposure to oil price upside through smaller E&P companies.
XLE vs VDE is a choice between the most liquid megacap-only energy ETF and a slightly broader energy sector fund — in most oil price environments they track nearly identically, but VDE provides more small-cap E&P upside in commodity bull markets while XLE offers tighter spreads for trading.
XLE holds the edge across 5 of 5 key metrics in this comparison. XLE has delivered stronger 1-year price return (+47.84% vs +46.83% for VDE).
- prefer the most liquid energy ETF with the tightest bid-ask spreads for tactical trading
- value simplicity in a concentrated megacap energy ETF focused on integrated oil majors with dividends
- want energy sector exposure with S&P 500 membership quality filter ensuring financial stability
- are comfortable with ExxonMobil and Chevron representing nearly half the fund's assets
- prefer broader energy sector coverage including smaller E&P and oil services companies beyond S&P 500 megacaps
- value Vanguard's ownership structure and long-term fund management approach
- want slightly more sensitivity to oil price upside through small-cap E&P company inclusion
- are comfortable with the same cost (0.10% vs 0.09%) for meaningfully broader sector coverage
| Metric | XLE | VDE |
|---|---|---|
| ETF scorei | 89.0 | 89.0 |
| Latest closei | $64.31 | $180.31 |
| 1M returni | +1.15% | +0.70% |
| 6M returni | +9.93% | +8.82% |
| 1Y returni | +47.84% | +46.83% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XLE | VDE |
|---|---|---|
| 1Y ago | $15.25K (+52.5%) started 2025-09-18 | $15.11K (+51.1%) started 2025-09-18 |
| 5Y ago | $39.31K (+293.1%) started 2021-09-20 | $38.45K (+284.5%) started 2021-09-20 |
| 10Y ago | $46.46K (+364.6%) started 2016-09-19 | $41.31K (+313.1%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | XLE | VDE |
|---|---|---|
| Expense ratioi | 0.08% | 0.09% |
| Total assets (AUM)i | $41.44B | $13.27B |
| Dividend yieldi | 2.37% | 2.24% |
| Trailing P/Ei | 17.84 | 17.58 |
| Betai | 0.49 | 0.51 |
| 52-week change | 47.84% | 46.83% |
| Metric | XLE | VDE |
|---|---|---|
| 1Y returni | +47.84% | +46.83% |
| 6M returni | +9.93% | +8.82% |
| 1M returni | +1.15% | +0.70% |
| 1Y Sharpe ratio | 1.70 | 1.67 |
| Betai | 0.49 | 0.51 |
| Dividend yieldi | 2.37% | 2.24% |
| 5Y CAGR | +26.44% | +26.08% |
Over the past year, XLE and VDE have moved strongly in the same direction (correlation of 1.00), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | XLE | VDE |
|---|---|---|---|
| 1Y | Growthi | +47.84% | +46.83% |
| CAGRi | +47.88% | +46.87% | |
| Volatilityi | 21.86% | 21.79% | |
| Sharpe ratioi | 1.70 | 1.67 | |
| Sortino ratioi | 2.50 | 2.45 | |
| Max drawdowni | 14.98% | 15.04% | |
| Current drawdowni | 2.46% | 2.86% | |
| Avg drawdowni | 4.06% | 4.05% | |
| Ulcer Indexi | 5.67% | 5.65% | |
| Max daily dropi | 4.12% | 4.02% | |
| Max wkly dropi | 7.02% | 7.16% | |
| 5Y | Growthi | +222.68% | +218.09% |
| CAGRi | +26.44% | +26.08% | |
| Volatilityi | 25.59% | 25.93% | |
| Sharpe ratioi | 0.87 | 0.85 | |
| Sortino ratioi | 1.23 | 1.20 | |
| Max drawdowni | 26.04% | 26.58% | |
| Current drawdowni | 2.46% | 2.86% | |
| Avg drawdowni | 6.79% | 6.96% | |
| Ulcer Indexi | 8.47% | 8.68% | |
| Max daily dropi | 9.20% | 9.07% | |
| Max wkly dropi | 18.68% | 18.78% | |
| 10Y | Growthi | +184.69% | +173.49% |
| CAGRi | +11.03% | +10.59% | |
| Volatilityi | 29.59% | 29.92% | |
| Sharpe ratioi | 0.35 | 0.34 | |
| Sortino ratioi | 0.49 | 0.47 | |
| Max drawdowni | 66.81% | 69.29% | |
| Current drawdowni | 2.46% | 2.86% | |
| Avg drawdowni | 13.94% | 15.19% | |
| Ulcer Indexi | 19.30% | 21.01% | |
| Max daily dropi | 20.14% | 19.83% | |
| Max wkly dropi | 34.55% | 35.20% |
| Category | XLE | VDE |
|---|---|---|
| Fund name | State Street Energy Select Sector SPDR ETF | Vanguard Energy Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.08% | 0.09% |
| Total assets (AUM)i | $41.44B | $13.27B |
| Dividend yieldi | 2.37% | 2.24% |
- 0.09% expense ratio is one of the lowest in sector ETFs
- S&P 500 universe filter ensures holdings are large, financially stable, dividend-paying energy companies
- High daily trading volume and tight bid-ask spreads make it the most liquid energy ETF for tactical trading
- Broader coverage (110 holdings) includes smaller E&P companies, oil services, and midstream names absent from XLE
- 0.10% expense ratio is virtually equal to XLE, with broader diversification at the same cost
- Vanguard ownership structure and brand provide confidence in long-term fund management without conflicts of interest
- Top 2 holdings (ExxonMobil and Chevron) can represent 40–50% of assets, creating extreme concentration
- Exclusion of smaller energy companies, MLPs, and midstream companies limits sector breadth versus VDE
- Energy sector performance is heavily correlated to crude oil price, and XLF provides no diversification against oil price risk
- Despite broader coverage, ExxonMobil and Chevron still dominate VDE due to cap-weighting, limiting effective diversification vs XLE
- Smaller energy company holdings increase exposure to high-cost producers that can be decimated by low oil prices
- Slightly lower daily trading volume and wider bid-ask spreads than XLE in some market conditions
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