VDIGX vs XLE
Vanguard Dividend Growth Fund Investor Class vs State Street Energy Select Sector SPDR ETF
Quick Verdict
XLE has a lower expense ratio. XLE delivered stronger 1-year returns. VDIGX offers more diversification with 62 holdings.
Side-by-Side Comparison
| Metric | VDIGX | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.08% | |
| AUM | $35.5B | $40.6B | |
| Dividend Yield | 23.36% | 2.55% | |
| Holdings | 62 | 24 | |
| YTD Return | -1.31% | +42.04% | |
| 1Y Return | -12.26% | +45.72% | |
| 3Y Return (annualized) | -3.33% | +15.79% | |
| 5Y Return (annualized) | -3.31% | +25.96% | |
| Volatility (annualized) | 16.1% | 25.1% | |
| Max Drawdown | -32.6% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | May 15, 1992 | Dec 16, 1998 |
VDIGX vs XLE Performance
Vanguard Dividend Growth Fund Investor Class (VDIGX) is a mutual fund 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 VDIGX returned -12.26% while XLE returned +45.72%. Year to date, VDIGX is down 1.31% versus a gain of 42.04% for XLE.
Over three years, VDIGX compounded at -3.33% per year against +15.79% for XLE; over five years the annualized figures are -3.31% and +25.96% respectively. Across the full 5-year window we track, XLE has the edge at +7.13% annualized vs -3.31%. 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 16.1% for VDIGX. 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 -32.6% for VDIGX 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 0.32. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VDIGX charges 0.20% per year while XLE charges 0.08%. On a $10,000 position that is $20 vs $8 annually, a gap of $12 per year that compounds over a long holding period. On income, VDIGX currently yields 23.36% against 2.55% for XLE.
Holdings Overlap
VDIGX and XLE share 1 holdings out of 72 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VDIGX | Weight in XLE | Difference |
|---|---|---|---|
| XOM | 1.64% | 21.04% | 19.40% |
Frequently Asked Questions
Which is cheaper, VDIGX or XLE?
VDIGX has an expense ratio of 0.20% while XLE charges 0.08%. XLE is the cheaper option. On a $10,000 investment, that is $12 per year of difference.
Which performed better, VDIGX or XLE?
Over the past year VDIGX returned -12.26% vs +45.72% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (5 years), VDIGX annualized -3.31% vs +7.13% for XLE. Past performance does not guarantee future results.
Which is riskier, VDIGX or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 16.1% for VDIGX. Worst drawdown: VDIGX -32.6% vs XLE -76.7%.
Should I hold both VDIGX and XLE?
VDIGX and XLE have a monthly-return correlation of 0.32, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VDIGX and XLE?
VDIGX and XLE share 1 common holdings with a 1.6% weight overlap. Combined, they hold 72 unique securities.
Which pays a higher dividend, VDIGX or XLE?
VDIGX yields 23.36% while XLE yields 2.55%, so VDIGX currently pays the higher dividend yield.
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