VIG vs XLE
Vanguard Dividend Appreciation ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VIG or XLE?
Large Cap Blend against Large Cap Value.
VIG has a lower expense ratio. VIG led over 3Y and the full window, XLE over 1Y and 5Y. VIG is less concentrated, with 33.4% 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 | VIG | XLE |
|---|---|---|
| Expense Ratio | 0.04%Best | 0.08% |
| AUM | $111.4B | $42.4B |
| Dividend Yield | 1.48% | 2.55% |
| Holdings | 335 | 24 |
| YTD Return | +8.21% | +38.51%Best |
| 1Y Return | +11.34% | +43.01%Best |
| 3Y Return (annualized) | +16.39%Best | +14.69% |
| 5Y Return (annualized) | +10.34% | +23.96%Best |
| Volatility (annualized) | 13.3%Best | 26.3% |
| Max Drawdown | -48.2%Best | -76.7% |
| $10,000 over 5 years | $16,356 | $29,269Best |
| Top 10 Weight | 33.4%Best | 73.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Apr 21, 2006 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Apr 27, 2006 to Sep 23, 2026 (20.4 years).
VIG 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 20.4 years both funds cover.
VIG vs XLE Performance
Vanguard Dividend Appreciation ETF (VIG) 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 VIG returned +11.34% while XLE returned +43.01%. Year to date, VIG is up 8.21% versus a gain of 38.51% for XLE.
Over three years, VIG compounded at +16.39% per year against +14.69% for XLE; over five years the annualized figures are +10.34% and +23.96% respectively. Across the full 20-year window we track, VIG has the edge at +8.44% annualized vs +4.99%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 26.3% compared with 13.3% for VIG. 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 -48.2% for VIG 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
VIG charges 0.04% per year while XLE charges 0.08%. On a $10,000 position that is $4 vs $8 annually, a gap of $4 per year that compounds over a long holding period. On income, VIG currently yields 1.48% against 2.55% for XLE.
Holdings Overlap
3.3% of VIG's money is in holdings XLE also owns. 26.7% of XLE's money is in holdings VIG also owns.
XLE and VIG share little of their money.
3 positions in common, counted across the 322 positions we hold weights for in VIG and 22 in XLE, against full books of 335 and 24.
What only one of them owns
Measured across the 322 and 22 positions we hold weights for.
VIG holds 296 positions XLE does not, 96.1% of the fund.
Largest: AVGO 4.63%, AAPL 4.45%, MSFT 4.34%, JPM 4.07%, LLY 3.93%
26.7% of XLE is already inside VIG.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, VIG or XLE?
VIG has an expense ratio of 0.04% while XLE charges 0.08%. VIG is the cheaper option, by $4 a year on a $10,000 investment.
Which performed better, VIG or XLE?
Over the past year VIG returned +11.34% vs +43.01% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (20 years), VIG annualized +8.44% vs +4.99% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VIG or XLE?
XLE has been the more volatile fund at 26.3% annualized versus 13.3% for VIG. Worst drawdown: VIG -48.2% vs XLE -76.7%.
Should I hold both VIG and XLE?
VIG 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.
What is the holdings overlap between VIG and XLE?
26.7% of XLE's money is in holdings VIG also owns. 26.7% of XLE's is in holdings VIG also owns. They hold 3 positions in common, counted across the 322 positions we hold weights for in VIG and 22 in XLE.
Which pays a higher dividend, VIG or XLE?
VIG yields 1.48% while XLE yields 2.55%, so XLE currently pays the higher dividend yield.
Is XLE better than VIG?
VIG has a lower expense ratio. VIG led over 3Y and the full window, XLE over 1Y and 5Y. VIG is less concentrated, with 33.4% 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.