VTBNX vs XLE
Vanguard Total Bond Market II Index Fund Institutional Shares vs State Street Energy Select Sector SPDR ETF
Quick Verdict
VTBNX has a lower expense ratio. XLE delivered stronger 1-year returns. VTBNX offers more diversification with 15,623 holdings.
Side-by-Side Comparison
| Metric | VTBNX | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.02% | 0.08% | |
| AUM | $207.3B | $40.0B | |
| Dividend Yield | 3.79% | 2.55% | |
| Holdings | 15,623 | 24 | |
| YTD Return | -2.70% | +41.33% | |
| 1Y Return | -1.68% | +51.94% | |
| 3Y Return (annualized) | +0.65% | +16.98% | |
| 5Y Return (annualized) | -3.62% | +26.28% | |
| Volatility (annualized) | 6.3% | 25.1% | |
| Max Drawdown | -21.5% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Fixed Income | Equity | |
| Inception | Feb 17, 2009 | Dec 16, 1998 |
VTBNX vs XLE Performance
Vanguard Total Bond Market II Index Fund Institutional Shares (VTBNX) 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 VTBNX returned -1.68% while XLE returned +51.94%. Year to date, VTBNX is down 2.70% versus a gain of 41.33% for XLE.
Over three years, VTBNX compounded at +0.65% per year against +16.98% for XLE; over five years the annualized figures are -3.62% and +26.28% respectively. Across the full 5-year window we track, XLE has the edge at +7.12% annualized vs -3.62%. 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 6.3% for VTBNX. 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 -21.5% for VTBNX 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
VTBNX 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, VTBNX currently yields 3.79% against 2.55% for XLE.
Holdings Overlap
VTBNX and XLE share 0 holdings out of 12750 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, VTBNX or XLE?
VTBNX has an expense ratio of 0.02% while XLE charges 0.08%. VTBNX is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VTBNX or XLE?
Over the past year VTBNX returned -1.68% vs +51.94% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (5 years), VTBNX annualized -3.62% vs +7.12% for XLE. Past performance does not guarantee future results.
Which is riskier, VTBNX or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 6.3% for VTBNX. Worst drawdown: VTBNX -21.5% vs XLE -76.7%.
Should I hold both VTBNX and XLE?
VTBNX 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 VTBNX and XLE?
VTBNX and XLE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 12750 unique securities.
Which pays a higher dividend, VTBNX or XLE?
VTBNX yields 3.79% while XLE yields 2.55%, so VTBNX currently pays the higher dividend yield.
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