BND vs XLE
Vanguard Total Bond Market ETF vs State Street Energy Select Sector SPDR ETF
Quick Verdict
BND has a lower expense ratio. XLE delivered stronger 1-year returns. BND offers more diversification with 10790 holdings.
Side-by-Side Comparison
| Metric | BND | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $159.8B | $38.1B | |
| Dividend Yield | 3.94% | 2.85% | |
| Holdings | 17,528 | 25 | |
| YTD Return | -0.43% | +35.54% | |
| 1Y Return | +1.98% | +48.67% | |
| 3Y Return (annualized) | +4.25% | +14.52% | |
| 5Y Return (annualized) | -0.27% | +23.97% | |
| Volatility (annualized) | 4.6% | 25.1% | |
| Max Drawdown | -19.6% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Apr 3, 2007 | Dec 16, 1998 |
BND vs XLE Performance
Vanguard Total Bond Market ETF (BND) is a ETF from Vanguard (US) and State Street Energy Select Sector SPDR ETF (XLE) is a ETF from SPDR State Street Global Advisors. Over the past year BND returned +1.98% while XLE returned +48.67%. Year to date, BND is down 0.43% versus a gain of 35.54% for XLE.
Over three years, BND compounded at +4.25% per year against +14.52% for XLE; over five years the annualized figures are -0.27% and +23.97% respectively. Across the full 19-year window we track, XLE has the edge at +6.96% annualized vs +0.68%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.1% compared with 4.6% for BND. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -19.6% for BND and -76.7% for XLE. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.00. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
BND charges 0.03% per year while XLE charges 0.08%. On a $10,000 position that is $3 vs $8 annually, a gap of $5 per year that compounds over a long holding period. On income, BND currently yields 3.94% against 2.85% for XLE.
Holdings Overlap
BND and XLE share 0 holdings out of 10812 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, BND or XLE?
BND has an expense ratio of 0.03% while XLE charges 0.08%. BND is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, BND or XLE?
Over the past year BND returned +1.98% vs +48.67% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (19 years), BND annualized +0.68% vs +6.96% for XLE. Past performance does not guarantee future results.
Which is riskier, BND or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 4.6% for BND. Worst drawdown: BND -19.6% vs XLE -76.7%.
Should I hold both BND and XLE?
BND and XLE have a monthly-return correlation of 0.00, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between BND and XLE?
BND and XLE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 10812 unique securities.
Which pays a higher dividend, BND or XLE?
BND yields 3.94% while XLE yields 2.85%, so BND currently pays the higher dividend yield.
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