VIITX vs XLE

Quick Verdict

VIITX has a lower expense ratio. XLE delivered stronger 1-year returns. VIITX offers more diversification with 2,599 holdings.

Lower Fees: VIITXHigher Returns: XLEMore Diversified: VIITX

Side-by-Side Comparison

MetricVIITXXLEWinner
Expense Ratio0.02%0.08%
AUM-$40.0B
Dividend Yield4.59%2.55%
Holdings2,59924
YTD Return-1.71%+37.49%
1Y Return-1.39%+49.23%
3Y Return (annualized)+0.65%+15.86%
5Y Return (annualized)-2.28%+25.12%
Volatility (annualized)4.2%25.1%
Max Drawdown-15.0%-76.7%
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryFixed IncomeEquity
InceptionDec 1, 1997Dec 16, 1998

VIITX vs XLE Performance

Vanguard Institutional Intermediate Term Bond Fund Institutional Plus Class (VIITX) is a mutual fund 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 VIITX returned -1.39% while XLE returned +49.23%. Year to date, VIITX is down 1.71% versus a gain of 37.49% for XLE.

Over three years, VIITX compounded at +0.65% per year against +15.86% for XLE; over five years the annualized figures are -2.28% and +25.12% respectively. Across the full 5-year window we track, XLE has the edge at +7.02% annualized vs -2.28%. 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 4.2% for VIITX. 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 -15.0% for VIITX 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 0.08. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VIITX charges 0.02% per year while XLE charges 0.08%. On a $10,000 position that is $2 vs $8 annually, a gap of $6 per year that compounds over a long holding period. On income, VIITX currently yields 4.59% against 2.55% for XLE.

Holdings Overlap

0.0%overlap

VIITX and XLE share 0 holdings out of 1207 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, VIITX or XLE?

VIITX has an expense ratio of 0.02% while XLE charges 0.08%. VIITX is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, VIITX or XLE?

Over the past year VIITX returned -1.39% vs +49.23% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (5 years), VIITX annualized -2.28% vs +7.02% for XLE. Past performance does not guarantee future results.

Which is riskier, VIITX or XLE?

XLE has been the more volatile fund at 25.1% annualized versus 4.2% for VIITX. Worst drawdown: VIITX -15.0% vs XLE -76.7%.

Should I hold both VIITX and XLE?

VIITX and XLE have a monthly-return correlation of 0.08, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VIITX and XLE?

VIITX and XLE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1207 unique securities.

Which pays a higher dividend, VIITX or XLE?

VIITX yields 4.59% while XLE yields 2.55%, so VIITX currently pays the higher dividend yield.

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