VEA vs XLE
Vanguard FTSE Developed Markets ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VEA or XLE?
Large Cap Blend against Large Cap Value.
VEA has a lower expense ratio. VEA led over 3Y, XLE over 1Y, 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 | VEA | XLE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $230.3B | $40.6B |
| Dividend Yield | 2.55% | 2.55% |
| Holdings | 3,886 | 24 |
| YTD Return | +17.01% | +43.51%Best |
| 1Y Return | +29.57% | +50.60%Best |
| 3Y Return (annualized) | +21.13%Best | +16.00% |
| 5Y Return (annualized) | +9.93% | +26.11%Best |
| Volatility (annualized) | 17.7%Best | 26.9% |
| Max Drawdown | -62.9%Best | -76.7% |
| $10,000 over 5 years | $16,054 | $31,897Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Jul 20, 2007 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jul 26, 2007 to Sep 3, 2026 (19.1 years).
VEA 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 19.1 years both funds cover.
VEA vs XLE Performance
Vanguard FTSE Developed Markets ETF (VEA) 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 VEA returned +29.57% while XLE returned +50.60%. Year to date, VEA is up 17.01% versus a gain of 43.51% for XLE.
Over three years, VEA compounded at +21.13% per year against +16.00% for XLE; over five years the annualized figures are +9.93% and +26.11% respectively. Across the full 19-year window we track, XLE has the edge at +4.32% annualized vs +3.16%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 26.9% compared with 17.7% for VEA. 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 -62.9% for VEA 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 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VEA 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, VEA currently yields 2.55% against 2.55% for XLE.
Holdings Overlap
We hold position weights for 3,744 holdings in VEA and 22 in XLE, totalling 94.7% and 99.9% 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 3,744 positions we hold weights for in VEA and 22 in XLE, against full books of 3,886 and 24.
What only one of them owns
Measured across the 3,744 and 22 positions we hold weights for.
VEA holds 36 positions XLE does not, 4.5% of the fund.
Largest: VEA 1.20%, SHEL 0.67%, SAN 0.61%, SUMIBK 2.93 09/17/41 0.43%, BALN 3.4 04/15/30 14 0.22%
You are not choosing between two funds in isolation.
Whichever of VEA 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, VEA or XLE?
VEA has an expense ratio of 0.03% while XLE charges 0.08%. VEA is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VEA or XLE?
Over the past year VEA returned +29.57% vs +50.60% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.16% vs +4.32% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VEA or XLE?
XLE has been the more volatile fund at 26.9% annualized versus 17.7% for VEA. Worst drawdown: VEA -62.9% vs XLE -76.7%.
Should I hold both VEA and XLE?
VEA and XLE have a monthly-return correlation of 0.61, 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, VEA or XLE?
VEA yields 2.55% while XLE yields 2.55%, so VEA currently pays the higher dividend yield.
Is XLE better than VEA?
VEA has a lower expense ratio. VEA led over 3Y, XLE over 1Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.