VGK vs XLE
Vanguard FTSE Europe ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VGK or XLE?
Large Cap Blend against Large Cap Value.
VGK has a lower expense ratio. VGK led over 3Y, XLE over 1Y, 5Y and the full window. VGK is less concentrated, with 18.4% of the fund in its ten largest positions against 73.5%.
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 | VGK | XLE |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $38.5B | $42.4B |
| Dividend Yield | 2.81% | 2.55% |
| Holdings | 1,240 | 24 |
| YTD Return | +5.99% | +38.51%Best |
| 1Y Return | +13.93% | +43.01%Best |
| 3Y Return (annualized) | +18.28%Best | +14.69% |
| 5Y Return (annualized) | +8.54% | +23.96%Best |
| Volatility (annualized) | 18.5%Best | 26.2% |
| Max Drawdown | -67.3%Best | -76.7% |
| $10,000 over 5 years | $15,064 | $29,269Best |
| Top 10 Weight | 18.4%Best | 73.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Mar 4, 2005 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Sep 23, 2026 (21.5 years).
VGK 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 21.5 years both funds cover.
VGK vs XLE Performance
Vanguard FTSE Europe ETF (VGK) 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 VGK returned +13.93% while XLE returned +43.01%. Year to date, VGK is up 5.99% versus a gain of 38.51% for XLE.
Over three years, VGK compounded at +18.28% per year against +14.69% for XLE; over five years the annualized figures are +8.54% and +23.96% respectively. Across the full 22-year window we track, XLE has the edge at +6.13% annualized vs +3.44%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 26.2% compared with 18.5% for VGK. 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 -67.3% for VGK 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 0.60. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VGK charges 0.06% per year while XLE charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, VGK currently yields 2.81% against 2.55% for XLE.
Holdings Overlap
We hold position weights for 1,101 holdings in VGK and 22 in XLE, totalling 95.3% and 99.7% 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 1,101 positions we hold weights for in VGK and 22 in XLE, against full books of 1,240 and 24.
What only one of them owns
Measured across the 1,101 and 22 positions we hold weights for.
VGK holds 13 positions XLE does not, 3.3% of the fund.
Largest: SHEL 1.44%, CURV 0.71%, BASFY 0.32%, ALC 0.21%, SUNB 0.18%
You are not choosing between two funds in isolation.
Whichever of VGK 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, VGK or XLE?
VGK has an expense ratio of 0.06% while XLE charges 0.08%. VGK is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VGK or XLE?
Over the past year VGK returned +13.93% vs +43.01% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (22 years), VGK annualized +3.44% vs +6.13% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGK or XLE?
XLE has been the more volatile fund at 26.2% annualized versus 18.5% for VGK. Worst drawdown: VGK -67.3% vs XLE -76.7%.
Should I hold both VGK and XLE?
VGK and XLE have a monthly-return correlation of 0.60, 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, VGK or XLE?
VGK yields 2.81% while XLE yields 2.55%, so VGK currently pays the higher dividend yield.
Is XLE better than VGK?
VGK has a lower expense ratio. VGK led over 3Y, XLE over 1Y, 5Y and the full window. VGK is less concentrated, with 18.4% of the fund in its ten largest positions against 73.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.