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 (+45.02% vs +42.47% 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 | 27.6 | 25.3 |
| Latest closei | $61.63 | $171.07 |
| 1M returni | -3.33% | -4.25% |
| 3M returni | +6.60% | +4.87% |
| 6M returni | +11.61% | +8.76% |
| 1Y returni | +45.02% | +42.47% |
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 | $14.92K (+49.2%) started 2025-11-05 | $14.64K (+46.4%) started 2025-11-05 |
| 5Y ago | $30.22K (+202.2%) started 2021-11-08 | $29.18K (+191.8%) started 2021-11-08 |
| 10Y ago | $44K (+340.0%) started 2016-11-07 | $38.53K (+285.3%) started 2016-11-07 |
Hypothetical — past performance does not guarantee future results.
| Metric | XLE | VDE |
|---|---|---|
| Expense ratioi | 0.08% | 0.09% |
| Total assets (AUM)i | $46.37B | $14.14B |
| Dividend yieldi | 2.18% | 2.09% |
| Trailing P/Ei | 15.39 | 16.80 |
| Betai | 0.46 | 0.48 |
| 52-week change | 45.02% | 42.47% |
| Metric | XLE | VDE |
|---|---|---|
| 1Y returni | +45.02% | +42.47% |
| 6M returni | +11.61% | +8.76% |
| 3M returni | +6.60% | +4.87% |
| 1M returni | -3.33% | -4.25% |
| 1Y Sharpe ratio | 1.53 | 1.45 |
| Betai | 0.46 | 0.48 |
| Dividend yieldi | 2.18% | 2.09% |
| 5Y CAGR | +20.15% | +19.49% |
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 | +45.02% | +42.47% |
| CAGRi | +45.05% | +42.51% | |
| Volatilityi | 23.30% | 23.27% | |
| Sharpe ratioi | 1.53 | 1.45 | |
| Sortino ratioi | 2.19 | 2.07 | |
| Max drawdowni | 14.98% | 15.04% | |
| Current drawdowni | 11.98% | 12.48% | |
| Avg drawdowni | 3.90% | 3.93% | |
| Ulcer Indexi | 5.63% | 5.66% | |
| Max daily dropi | 4.74% | 5.05% | |
| Max wkly dropi | 10.30% | 10.91% | |
| 5Y | Growthi | +149.96% | +143.18% |
| CAGRi | +20.15% | +19.49% | |
| Volatilityi | 25.67% | 26.02% | |
| Sharpe ratioi | 0.67 | 0.64 | |
| Sortino ratioi | 0.93 | 0.89 | |
| Max drawdowni | 26.04% | 26.58% | |
| Current drawdowni | 11.98% | 12.48% | |
| Avg drawdowni | 6.85% | 7.02% | |
| Ulcer Indexi | 8.49% | 8.71% | |
| Max daily dropi | 9.20% | 9.07% | |
| Max wkly dropi | 18.68% | 18.78% | |
| 10Y | Growthi | +167.23% | +155.35% |
| CAGRi | +10.34% | +9.84% | |
| Volatilityi | 29.69% | 30.02% | |
| Sharpe ratioi | 0.33 | 0.31 | |
| Sortino ratioi | 0.46 | 0.44 | |
| Max drawdowni | 66.81% | 69.29% | |
| Current drawdowni | 11.98% | 12.48% | |
| Avg drawdowni | 13.96% | 15.20% | |
| 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 | $46.37B | $14.14B |
| Dividend yieldi | 2.18% | 2.09% |
- 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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