VOO vs XLE
Vanguard S&P 500 ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VOO or XLE?
Large Cap Blend against Large Cap Value.
VOO has a lower expense ratio. VOO led over 3Y and the full window, XLE over 1Y and 5Y. VOO is less concentrated, with 37.6% 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 | VOO | XLE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $997.4B | $42.4B |
| Dividend Yield | 1.04% | 2.55% |
| Holdings | 509 | 24 |
| YTD Return | +13.31% | +38.51%Best |
| 1Y Return | +17.07% | +43.01%Best |
| 3Y Return (annualized) | +22.72%Best | +14.69% |
| 5Y Return (annualized) | +13.19% | +23.96%Best |
| Volatility (annualized) | 14.1%Best | 26.8% |
| Max Drawdown | -34.3%Best | -76.7% |
| $10,000 over 5 years | $18,580 | $29,269Best |
| Top 10 Weight | 37.6%Best | 73.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Sep 7, 2010 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 23, 2026 (16 years).
VOO 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 16 years both funds cover.
VOO vs XLE Performance
Vanguard S&P 500 ETF (VOO) 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 VOO returned +17.07% while XLE returned +43.01%. Year to date, VOO is up 13.31% versus a gain of 38.51% for XLE.
Over three years, VOO compounded at +22.72% per year against +14.69% for XLE; over five years the annualized figures are +13.19% and +23.96% respectively. Across the full 16-year window we track, VOO has the edge at +13.43% annualized vs +6.70%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 26.8% compared with 14.1% for VOO. 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 -34.3% for VOO 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 0.59. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VOO 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, VOO currently yields 1.04% against 2.55% for XLE.
Holdings Overlap
3.3% of VOO's money is in holdings XLE also owns. 99.4% of XLE's money is in holdings VOO also owns.
Most of XLE is already inside VOO. Owning both mostly buys the same companies twice.
21 positions in common, counted across the 494 positions we hold weights for in VOO and 22 in XLE, against full books of 509 and 24.
What only one of them owns
Measured across the 494 and 22 positions we hold weights for.
VOO holds 466 positions XLE does not, 95.8% of the fund.
Largest: NVDA 7.55%, AAPL 7.05%, MSFT 5.36%, AMZN 4.13%, GOOGL 3.24%
Top Shared Holdings
| Stock | Weight in VOO | Weight in XLE | Difference |
|---|---|---|---|
| XOMExxon Mobil Corp. | 1.00% | 20.08% | 19.08% |
| CVXChevron Corp | 0.57% | 15.07% | 14.50% |
| COPConocophillips Common Stock USD 0.01 | 0.23% | 6.33% | 6.10% |
| MPCMarathon Petroleum Corp | 0.14% | 5.50% | 5.36% |
| PSXPhillips 66 | 0.13% | 5.39% | 5.26% |
| VLOValero Energy | 0.14% | 5.06% | 4.92% |
| SLBSchlumberger Nv. | 0.12% | 4.56% | 4.44% |
| EOGEog Resources Inc | 0.12% | 4.18% | 4.06% |
| WMBWilliams Cos. Inc. | 0.14% | 3.74% | 3.60% |
| TRGPTarga Resources Corp Preferred | 0.09% | 3.63% | 3.54% |
99.4% of XLE is already inside VOO.
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, VOO or XLE?
VOO has an expense ratio of 0.03% while XLE charges 0.08%. VOO is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VOO or XLE?
Over the past year VOO returned +17.07% vs +43.01% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (16 years), VOO annualized +13.43% vs +6.70% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VOO or XLE?
XLE has been the more volatile fund at 26.8% annualized versus 14.1% for VOO. Worst drawdown: VOO -34.3% vs XLE -76.7%.
Should I hold both VOO and XLE?
VOO and XLE have a monthly-return correlation of 0.59, 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 VOO and XLE?
99.4% of XLE's money is in holdings VOO also owns. 99.4% of XLE's is in holdings VOO also owns. They hold 21 positions in common, counted across the 494 positions we hold weights for in VOO and 22 in XLE.
Which pays a higher dividend, VOO or XLE?
VOO yields 1.04% while XLE yields 2.55%, so XLE currently pays the higher dividend yield.
Is XLE better than VOO?
VOO has a lower expense ratio. VOO led over 3Y and the full window, XLE over 1Y and 5Y. VOO is less concentrated, with 37.6% 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.