VDE vs VOO
Vanguard Energy ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VDE delivered stronger 1-year returns. VOO offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | VDE | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $9.0B | $979.0B | |
| Dividend Yield | 3.43% | 1.09% | |
| Holdings | 109 | 509 | |
| YTD Return | +27.78% | +13.80% | |
| 1Y Return | +40.81% | +23.71% | |
| 3Y Return (annualized) | +13.24% | +21.50% | |
| 5Y Return (annualized) | +23.18% | +13.44% | |
| Volatility (annualized) | 26.6% | 14.1% | |
| Max Drawdown | -78.5% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 23, 2004 | Sep 7, 2010 |
VDE vs VOO Performance
Vanguard Energy ETF (VDE) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VDE returned +40.81% while VOO returned +23.71%. Year to date, VDE is up 27.78% versus a gain of 13.80% for VOO.
Over three years, VDE compounded at +13.24% per year against +21.50% for VOO; over five years the annualized figures are +23.18% and +13.44% respectively. Across the full 16-year window we track, VOO has the edge at +13.58% annualized vs +6.48%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VDE has been the more volatile fund, with annualized monthly volatility of 26.6% compared with 14.1% for VOO. 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 -78.5% for VDE and -34.3% for VOO. 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 0.59. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDE charges 0.09% per year while VOO charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, VDE currently yields 3.43% against 1.09% for VOO.
Holdings Overlap
VDE and VOO share 22 holdings out of 595 unique holdings combined, representing a 3.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VDE or VOO?
VDE has an expense ratio of 0.09% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VDE or VOO?
Over the past year VDE returned +40.81% vs +23.71% for VOO, so VDE leads on 1-year performance. Over the longest common window we track (16 years), VDE annualized +6.48% vs +13.58% for VOO. Past performance does not guarantee future results.
Which is riskier, VDE or VOO?
VDE has been the more volatile fund at 26.6% annualized versus 14.1% for VOO. Worst drawdown: VDE -78.5% vs VOO -34.3%.
Should I hold both VDE and VOO?
VDE and VOO have a monthly-return correlation of 0.59, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDE and VOO?
VDE and VOO share 22 common holdings with a 3.0% weight overlap. Combined, they hold 595 unique securities.
Which pays a higher dividend, VDE or VOO?
VDE yields 3.43% while VOO yields 1.09%, so VDE currently pays the higher dividend yield.
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