VO vs XLE
Vanguard Morningstar Mid-Cap ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VO or XLE?
Mid Cap Blend against Large Cap Value.
VO has a lower expense ratio. VO led over 3Y and the full window, XLE over 1Y and 5Y. VO is less concentrated, with 9.1% 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 | VO | XLE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $106.6B | $42.4B |
| Dividend Yield | 1.30% | 2.55% |
| Holdings | 289 | 24 |
| YTD Return | +9.70% | +39.02%Best |
| 1Y Return | +11.07% | +41.70%Best |
| 3Y Return (annualized) | +16.69%Best | +14.81% |
| 5Y Return (annualized) | +7.00% | +23.86%Best |
| Volatility (annualized) | 16.9%Best | 25.9% |
| Max Drawdown | -60.3%Best | -76.7% |
| $10,000 over 5 years | $14,026 | $29,151Best |
| Top 10 Weight | 9.1%Best | 73.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Value |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 24, 2026 (22.7 years).
VO 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 22.7 years both funds cover.
VO vs XLE Performance
Vanguard Morningstar Mid-Cap ETF (VO) 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 VO returned +11.07% while XLE returned +41.70%. Year to date, VO is up 9.70% versus a gain of 39.02% for XLE.
Over three years, VO compounded at +16.69% per year against +14.81% for XLE; over five years the annualized figures are +7.00% and +23.86% respectively. Across the full 23-year window we track, VO has the edge at +8.98% annualized vs +7.77%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.9% compared with 16.9% for VO. 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 -60.3% for VO 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 0.65. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VO 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, VO currently yields 1.30% against 2.55% for XLE.
Holdings Overlap
7.5% of VO's money is in holdings XLE also owns. 51.5% of XLE's money is in holdings VO also owns.
The two portfolios partly overlap.
15 positions in common, counted across the 283 positions we hold weights for in VO and 22 in XLE, against full books of 289 and 24.
What only one of them owns
Measured across the 283 and 22 positions we hold weights for.
VO holds 260 positions XLE does not, 89.5% of the fund.
Largest: HWM 1.09%, PWR 0.96%, STX 0.92%, WDC 0.90%, VRT 0.89%
Top Shared Holdings
| Stock | Weight in VO | Weight in XLE | Difference |
|---|---|---|---|
| MPCMarathon Petroleum Corp | 0.89% | 5.50% | 4.61% |
| PSXPhillips 66 | 0.82% | 5.39% | 4.57% |
| VLOValero Energy | 0.89% | 5.06% | 4.17% |
| SLBSchlumberger Nv. | 0.71% | 4.56% | 3.85% |
| BKRBaker Hughes Co | 0.58% | 3.61% | 3.03% |
| TRGPTarga Resources Corp Preferred | 0.56% | 3.63% | 3.07% |
| WMBWilliams Cos. Inc. | 0.42% | 3.74% | 3.32% |
| OKEOneok Inc. | 0.55% | 3.45% | 2.90% |
| KMIKinder Morgan Inc./de | 0.29% | 3.59% | 3.30% |
| DVNDevon Energy Corporation | 0.50% | 3.23% | 2.73% |
51.5% of XLE is already inside VO.
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, VO or XLE?
VO has an expense ratio of 0.03% while XLE charges 0.08%. VO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VO or XLE?
Over the past year VO returned +11.07% vs +41.70% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (23 years), VO annualized +8.98% vs +7.77% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VO or XLE?
XLE has been the more volatile fund at 25.9% annualized versus 16.9% for VO. Worst drawdown: VO -60.3% vs XLE -76.7%.
Should I hold both VO and XLE?
VO and XLE have a monthly-return correlation of 0.65, 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 VO and XLE?
51.5% of XLE's money is in holdings VO also owns. 51.5% of XLE's is in holdings VO also owns. They hold 15 positions in common, counted across the 283 positions we hold weights for in VO and 22 in XLE.
Which pays a higher dividend, VO or XLE?
VO yields 1.30% while XLE yields 2.55%, so XLE currently pays the higher dividend yield.
Is XLE better than VO?
VO has a lower expense ratio. VO led over 3Y and the full window, XLE over 1Y and 5Y. VO is less concentrated, with 9.1% 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.