VOT vs XLE

Quick Verdict

VOT has a lower expense ratio. XLE delivered stronger 1-year returns. VOT offers more diversification with 121 holdings.

Lower Fees: VOTHigher Returns: XLEMore Diversified: VOT

Side-by-Side Comparison

MetricVOTXLEWinner
Expense Ratio0.05%0.08%
AUM$19.9B$38.1B
Dividend Yield0.65%2.85%
Holdings13625
YTD Return+11.80%+35.60%
1Y Return+9.62%+47.04%
3Y Return (annualized)+16.13%+14.53%
5Y Return (annualized)+5.98%+24.28%
Volatility (annualized)18.6%25.1%
Max Drawdown-60.3%-76.7%
Fund FamilyVanguard (US)SPDR State Street Global Advisors
CategoryEquityEquity
InceptionAug 17, 2006Dec 16, 1998

VOT vs XLE Performance

Vanguard Mid-Cap Growth ETF (VOT) 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 VOT returned +9.62% while XLE returned +47.04%. Year to date, VOT is up 11.80% versus a gain of 35.60% for XLE.

Over three years, VOT compounded at +16.13% per year against +14.53% for XLE; over five years the annualized figures are +5.98% and +24.28% respectively. Across the full 20-year window we track, VOT has the edge at +9.74% annualized vs +6.96%. 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 18.6% for VOT. 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 VOT 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 0.58. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

VOT charges 0.05% per year while XLE charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VOT currently yields 0.65% against 2.85% for XLE.

Holdings Overlap

1.7%overlap

VOT and XLE share 3 holdings out of 140 unique holdings combined, representing a 1.7% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in VOTWeight in XLEDifference
TRGP1.26%3.93%2.67%
EQT0.18%2.25%2.07%
TPL0.28%1.62%1.34%

Frequently Asked Questions

Which is cheaper, VOT or XLE?

VOT has an expense ratio of 0.05% while XLE charges 0.08%. VOT is the cheaper option. On a $10,000 investment, that is $3 per year of difference.

Which performed better, VOT or XLE?

Over the past year VOT returned +9.62% vs +47.04% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (20 years), VOT annualized +9.74% vs +6.96% for XLE. Past performance does not guarantee future results.

Which is riskier, VOT or XLE?

XLE has been the more volatile fund at 25.1% annualized versus 18.6% for VOT. Worst drawdown: VOT -60.3% vs XLE -76.7%.

Should I hold both VOT and XLE?

VOT and XLE have a monthly-return correlation of 0.58, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between VOT and XLE?

VOT and XLE share 3 common holdings with a 1.7% weight overlap. Combined, they hold 140 unique securities.

Which pays a higher dividend, VOT or XLE?

VOT yields 0.65% while XLE yields 2.85%, so XLE currently pays the higher dividend yield.

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