VONG vs XLE
Vanguard Russell 1000 Growth ETF vs State Street Energy Select Sector SPDR ETF
Quick Verdict
VONG has a lower expense ratio. XLE delivered stronger 1-year returns. VONG offers more diversification with 373 holdings.
Side-by-Side Comparison
| Metric | VONG | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.06% | 0.08% | |
| AUM | $51.6B | $40.0B | |
| Dividend Yield | 0.48% | 2.55% | |
| Holdings | 373 | 24 | |
| YTD Return | +3.62% | +41.58% | |
| 1Y Return | +11.38% | +53.25% | |
| 3Y Return (annualized) | +22.29% | +16.74% | |
| 5Y Return (annualized) | +12.29% | +27.23% | |
| Volatility (annualized) | 15.9% | 25.1% | |
| Max Drawdown | -32.7% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2010 | Dec 16, 1998 |
VONG vs XLE Performance
Vanguard Russell 1000 Growth ETF (VONG) is a ETF 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 VONG returned +11.38% while XLE returned +53.25%. Year to date, VONG is up 3.62% versus a gain of 41.58% for XLE.
Over three years, VONG compounded at +22.29% per year against +16.74% for XLE; over five years the annualized figures are +12.29% and +27.23% respectively. Across the full 16-year window we track, VONG has the edge at +15.60% annualized vs +7.12%. 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 15.9% for VONG. 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 -32.7% for VONG 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 0.42. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
VONG 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, VONG currently yields 0.48% against 2.55% for XLE.
Holdings Overlap
VONG and XLE share 5 holdings out of 388 unique holdings combined, representing a 0.4% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VONG or XLE?
VONG has an expense ratio of 0.06% while XLE charges 0.08%. VONG is the cheaper option. On a $10,000 investment, that is $2 per year of difference.
Which performed better, VONG or XLE?
Over the past year VONG returned +11.38% vs +53.25% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (16 years), VONG annualized +15.60% vs +7.12% for XLE. Past performance does not guarantee future results.
Which is riskier, VONG or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 15.9% for VONG. Worst drawdown: VONG -32.7% vs XLE -76.7%.
Should I hold both VONG and XLE?
VONG and XLE have a monthly-return correlation of 0.42, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VONG and XLE?
VONG and XLE share 5 common holdings with a 0.4% weight overlap. Combined, they hold 388 unique securities.
Which pays a higher dividend, VONG or XLE?
VONG yields 0.48% while XLE yields 2.55%, so XLE currently pays the higher dividend yield.
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