VGIT vs XLE
Vanguard Intermediate Term Treasury ETF vs State Street Energy Select Sector SPDR ETF
Quick Verdict
VGIT has a lower expense ratio. XLE delivered stronger 1-year returns. VGIT offers more diversification with 209 holdings.
Side-by-Side Comparison
| Metric | VGIT | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $42.4B | $40.0B | |
| Dividend Yield | 3.88% | 2.55% | |
| Holdings | 209 | 24 | |
| YTD Return | -0.22% | +38.33% | |
| 1Y Return | +1.22% | +43.98% | |
| 3Y Return (annualized) | +4.11% | +15.87% | |
| 5Y Return (annualized) | -0.07% | +24.83% | |
| Volatility (annualized) | 4.3% | 25.1% | |
| Max Drawdown | -17.2% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Nov 19, 2009 | Dec 16, 1998 |
VGIT vs XLE Performance
Vanguard Intermediate Term Treasury ETF (VGIT) 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 VGIT returned +1.22% while XLE returned +43.98%. Year to date, VGIT is down 0.22% versus a gain of 38.33% for XLE.
Over three years, VGIT compounded at +4.11% per year against +15.87% for XLE; over five years the annualized figures are -0.07% and +24.83% respectively. Across the full 17-year window we track, XLE has the edge at +7.03% annualized vs +0.78%. 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 4.3% for VGIT. 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 -17.2% for VGIT 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 -0.26. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VGIT 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, VGIT currently yields 3.88% against 2.55% for XLE.
Holdings Overlap
VGIT and XLE share 0 holdings out of 106 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VGIT or XLE?
VGIT has an expense ratio of 0.03% while XLE charges 0.08%. VGIT is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VGIT or XLE?
Over the past year VGIT returned +1.22% vs +43.98% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (17 years), VGIT annualized +0.78% vs +7.03% for XLE. Past performance does not guarantee future results.
Which is riskier, VGIT or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 4.3% for VGIT. Worst drawdown: VGIT -17.2% vs XLE -76.7%.
Should I hold both VGIT and XLE?
VGIT and XLE have a monthly-return correlation of -0.26, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VGIT and XLE?
VGIT and XLE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, VGIT or XLE?
VGIT yields 3.88% while XLE yields 2.55%, so VGIT currently pays the higher dividend yield.
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