VCIT vs XLE
Vanguard Intermediate Term Corporate Bond ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VCIT or XLE?
Long Term Mid Quality against Large Cap Value.
VCIT has a lower expense ratio. XLE led over 1Y, 3Y, 5Y and the full window.
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 | VCIT | XLE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $69.8B | $42.4B |
| Dividend Yield | 4.89% | 2.55% |
| Holdings | 2,271 | 24 |
| YTD Return | -1.72% | +42.82%Best |
| 1Y Return | -0.83% | +47.84%Best |
| 3Y Return (annualized) | +5.86% | +15.50%Best |
| 5Y Return (annualized) | +0.46% | +26.44%Best |
| Volatility (annualized) | 5.9%Best | 26.6% |
| Max Drawdown | -20.7%Best | -76.7% |
| $10,000 over 5 years | $10,232 | $32,316Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Value |
| Inception | Nov 19, 2009 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 18, 2026 (16.8 years).
VCIT 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 16.8 years both funds cover.
VCIT vs XLE Performance
Vanguard Intermediate Term Corporate Bond ETF (VCIT) 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 VCIT returned -0.83% while XLE returned +47.84%. Year to date, VCIT is down 1.72% versus a gain of 42.82% for XLE.
Over three years, VCIT compounded at +5.86% per year against +15.50% for XLE; over five years the annualized figures are +0.46% and +26.44% respectively. Across the full 17-year window we track, XLE has the edge at +6.19% annualized vs +1.66%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 26.6% compared with 5.9% for VCIT. 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 -20.7% for VCIT 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 0.21. They move largely independently of each other.
Fees and Cost Over Time
VCIT 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, VCIT currently yields 4.89% against 2.55% for XLE.
Holdings Overlap
We hold position weights for 1,364 holdings in VCIT and 22 in XLE, totalling 61.8% and 99.7% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 1,364 positions we hold weights for in VCIT and 22 in XLE, against full books of 2,271 and 24.
What only one of them owns
Measured across the 1,364 and 22 positions we hold weights for.
VCIT holds 1,195 positions XLE does not, 61.8% of the fund.
Largest: BA 6.528 05/01/34 0.28%, BAC V5.015 07/22/33 0.27%, PFE 4.75 05/19/33 0.26%, JPM V4.912 07/25/33 0.25%, JPM V5.35 06/01/34 0.25%
You are not choosing between two funds in isolation.
Whichever of VCIT 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, VCIT or XLE?
VCIT has an expense ratio of 0.03% while XLE charges 0.08%. VCIT is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VCIT or XLE?
Over the past year VCIT returned -0.83% vs +47.84% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (17 years), VCIT annualized +1.66% vs +6.19% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VCIT or XLE?
XLE has been the more volatile fund at 26.6% annualized versus 5.9% for VCIT. Worst drawdown: VCIT -20.7% vs XLE -76.7%.
Should I hold both VCIT and XLE?
VCIT and XLE have a monthly-return correlation of 0.21, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VCIT or XLE?
VCIT yields 4.89% while XLE yields 2.55%, so VCIT currently pays the higher dividend yield.
Is XLE better than VCIT?
VCIT has a lower expense ratio. XLE led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.