VBK vs XLE
Vanguard Morningstar Small-Cap Growth ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VBK or XLE?
Small Cap Growth against Large Cap Value.
VBK has a lower expense ratio. VBK led over 3Y and the full window, XLE over 1Y and 5Y. VBK is less concentrated, with 9.1% of the fund in its ten largest positions against 73.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VBK | XLE |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.08% |
| AUM | $23.2B | $42.4B |
| Dividend Yield | 0.44% | 2.55% |
| Holdings | 553 | 24 |
| YTD Return | +10.60% | +43.20%Best |
| 1Y Return | +13.31% | +47.77%Best |
| 3Y Return (annualized) | +15.92%Best | +15.24% |
| 5Y Return (annualized) | +3.67% | +25.69%Best |
| Volatility (annualized) | 19.6%Best | 25.9% |
| Max Drawdown | -59.4%Best | -76.7% |
| $10,000 over 5 years | $11,975 | $31,369Best |
| Top 10 Weight | 9.1%Best | 73.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Small Cap Growth | Large Cap Value |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 17, 2026 (22.6 years).
VBK vs XLE growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 22.6 years both funds cover.
VBK vs XLE Performance
Vanguard Morningstar Small-Cap Growth ETF (VBK) is an ETF from Vanguard (US) and State Street Energy Select Sector SPDR ETF (XLE) is an ETF from SPDR State Street Global Advisors. Over the past year VBK returned +13.31% while XLE returned +47.77%. Year to date, VBK is up 10.60% versus a gain of 43.20% for XLE.
Over three years, VBK compounded at +15.92% per year against +15.24% for XLE; over five years the annualized figures are +3.67% and +25.69% respectively. Across the full 23-year window we track, VBK has the edge at +9.06% annualized vs +7.92%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.9% compared with 19.6% for VBK. 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 -59.4% for VBK and -76.7% for XLE. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.57. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VBK charges 0.05% per year while XLE charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VBK currently yields 0.44% against 2.55% for XLE.
Holdings Overlap
0.6% of VBK's money is in holdings XLE also owns. 3.2% of XLE's money is in holdings VBK also owns.
XLE and VBK share little of their money.
The two holdings books were reported 63 days apart, VBK as of Jun 30, 2026 and XLE as of Sep 1, 2026, so some of the difference between them is the time between the two reports rather than the funds.
2 positions in common, counted across the 542 positions we hold weights for in VBK and 22 in XLE, against full books of 553 and 24.
What only one of them owns
Our book lists 20 positions for XLE that do not appear in our book for VBK (96.5% of the fund), and 523 for VBK that do not appear in XLE (91.9%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of VBK and XLE you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VBK or XLE?
VBK has an expense ratio of 0.05% while XLE charges 0.08%. VBK is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VBK or XLE?
Over the past year VBK returned +13.31% vs +47.77% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (23 years), VBK annualized +9.06% vs +7.92% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VBK or XLE?
XLE has been the more volatile fund at 25.9% annualized versus 19.6% for VBK. Worst drawdown: VBK -59.4% vs XLE -76.7%.
Should I hold both VBK and XLE?
VBK and XLE have a monthly-return correlation of 0.57, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VBK and XLE?
3.2% of XLE's money is in holdings VBK also owns. 3.2% of XLE's is in holdings VBK also owns. They hold 2 positions in common, counted across the 542 positions we hold weights for in VBK and 22 in XLE.
Which pays a higher dividend, VBK or XLE?
VBK yields 0.44% while XLE yields 2.55%, so XLE currently pays the higher dividend yield.
Is XLE better than VBK?
VBK has a lower expense ratio. VBK led over 3Y and the full window, XLE over 1Y and 5Y. VBK is less concentrated, with 9.1% of the fund in its ten largest positions against 73.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.