VGSH vs XLE
Vanguard Short Term Treasury ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VGSH or XLE?
Short Term Government Bond against Large Cap Value.
VGSH has a lower expense ratio. XLE led over 1Y, 3Y, 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 | VGSH | XLE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $34.7B | $42.4B |
| Dividend Yield | 3.82% | 2.55% |
| Holdings | 94 | 24 |
| YTD Return | +0.70% | +44.20%Best |
| 1Y Return | +1.92% | +50.27%Best |
| 3Y Return (annualized) | +4.16% | +16.33%Best |
| 5Y Return (annualized) | +1.86% | +26.66%Best |
| Volatility (annualized) | 1.4%Best | 26.6% |
| Max Drawdown | -6.7%Best | -76.7% |
| $10,000 over 5 years | $10,965 | $32,598Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Fixed Income | Equity |
| Style | Short Term Government Bond | Large Cap Value |
| Inception | Nov 19, 2009 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Nov 23, 2009 to Sep 10, 2026 (16.8 years).
VGSH 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VGSH vs XLE Performance
Vanguard Short Term Treasury ETF (VGSH) 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 VGSH returned +1.92% while XLE returned +50.27%. Year to date, VGSH is up 0.70% versus a gain of 44.20% for XLE.
Over three years, VGSH compounded at +4.16% per year against +16.33% for XLE; over five years the annualized figures are +1.86% and +26.66% respectively. Across the full 17-year window we track, XLE has the edge at +6.26% annualized vs +0.71%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 26.6% compared with 1.4% for VGSH. 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 -6.7% for VGSH 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 -0.19. They move largely independently of each other.
Fees and Cost Over Time
VGSH 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, VGSH currently yields 3.82% against 2.55% for XLE.
Holdings Overlap
We hold position weights for 16 holdings in VGSH and 22 in XLE, totalling 15.5% 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 16 positions we hold weights for in VGSH and 22 in XLE, against full books of 94 and 24.
You are not choosing between two funds in isolation.
Whichever of VGSH 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, VGSH or XLE?
VGSH has an expense ratio of 0.03% while XLE charges 0.08%. VGSH is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VGSH or XLE?
Over the past year VGSH returned +1.92% vs +50.27% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (17 years), VGSH annualized +0.71% vs +6.26% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VGSH or XLE?
XLE has been the more volatile fund at 26.6% annualized versus 1.4% for VGSH. Worst drawdown: VGSH -6.7% vs XLE -76.7%.
Should I hold both VGSH and XLE?
VGSH and XLE have a monthly-return correlation of -0.19, 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, VGSH or XLE?
VGSH yields 3.82% while XLE yields 2.55%, so VGSH currently pays the higher dividend yield.
Is XLE better than VGSH?
VGSH has a lower expense ratio. XLE led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.