VEA vs XLE
Vanguard FTSE Developed Markets ETF vs State Street Energy Select Sector SPDR ETF
Quick Verdict
VEA has a lower expense ratio. XLE delivered stronger 1-year returns. VEA offers more diversification with 3008 holdings.
Side-by-Side Comparison
| Metric | VEA | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $230.9B | $38.1B | |
| Dividend Yield | 2.57% | 2.85% | |
| Holdings | 3,918 | 25 | |
| YTD Return | +17.17% | +35.60% | |
| 1Y Return | +28.88% | +47.04% | |
| 3Y Return (annualized) | +20.71% | +14.53% | |
| 5Y Return (annualized) | +10.20% | +24.28% | |
| Volatility (annualized) | 17.8% | 25.1% | |
| Max Drawdown | -62.9% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Jul 20, 2007 | Dec 16, 1998 |
VEA vs XLE Performance
Vanguard FTSE Developed Markets ETF (VEA) is a ETF 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 VEA returned +28.88% while XLE returned +47.04%. Year to date, VEA is up 17.17% versus a gain of 35.60% for XLE.
Over three years, VEA compounded at +20.71% per year against +14.53% for XLE; over five years the annualized figures are +10.20% and +24.28% respectively. Across the full 19-year window we track, XLE has the edge at +6.96% annualized vs +3.18%. 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 17.8% 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 worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.61. They move independently enough that combining them can meaningfully diversify a portfolio.
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 2.57% against 2.85% for XLE.
Holdings Overlap
VEA and XLE share 1 holdings out of 3029 unique holdings combined, representing a 1.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in VEA | Weight in XLE | Difference |
|---|---|---|---|
| SLB:CW | 1.10% | 4.46% | 3.36% |
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. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VEA or XLE?
Over the past year VEA returned +28.88% vs +47.04% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (19 years), VEA annualized +3.18% vs +6.96% for XLE. Past performance does not guarantee future results.
Which is riskier, VEA or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 17.8% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VEA and XLE?
VEA and XLE share 1 common holdings with a 1.1% weight overlap. Combined, they hold 3029 unique securities.
Which pays a higher dividend, VEA or XLE?
VEA yields 2.57% while XLE yields 2.85%, so XLE currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.