VTBNX vs XLE
Vanguard Total Bond Market II Index Fund Institutional Shares vs State Street Energy Select Sector SPDR ETF
Which is better, VTBNX or XLE?
Long Term High Quality against Large Cap Value.
VTBNX has a lower expense ratio.
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 | VTBNX | XLE |
|---|---|---|
| Expense Ratio | 0.02%Best | 0.08% |
| AUM | $207.3B | $42.4B |
| Dividend Yield | 3.80% | 2.55% |
| Holdings | 14,920 | 24 |
| YTD Price Return | -3.85% | +42.69% |
| 1Y Price Return | -4.44% | +46.17% |
| 3Y Price Return (annualized) | +0.07% | +11.91% |
| 5Y Price Return (annualized) | -3.83% | +21.55% |
| Volatility (annualized) | 6.3%Best | 26.2% |
| Max Drawdown | -21.5%Best | -26.9% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Fixed Income | Equity |
| Style | Long Term High Quality | Large Cap Value |
| Inception | Feb 17, 2009 | Dec 16, 1998 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. VTBNX currently yields 3.80% and XLE 2.55%.
Volatility and max drawdown are measured over the window both funds cover: Sep 13, 2021 to Sep 10, 2026 (5 years).
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 an ETF from SPDR State Street Global Advisors. Over the past year VTBNX's price moved -4.44% and XLE's +46.17%, before the income each one paid out.
Over three years, VTBNX compounded at +0.07% per year against +11.91% for XLE; over five years the annualized figures are -3.83% and +21.55% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 26.2% 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 -26.9% 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 0.09. They move largely independently of each other.
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 3.80% against 2.55% for XLE.
Structure and taxes
VTBNX is a mutual fund and XLE is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
We hold position weights for 12,623 holdings in VTBNX and 22 in XLE, totalling 61.9% and 99.9% of the two funds. That is not enough of VTBNX to divide by, so no overlap percentage is shown here. Within what we can see, 1 positions appear in both.
1 positions in common, counted across the 12,623 positions we hold weights for in VTBNX and 22 in XLE, against full books of 14,920 and 24.
Top Shared Holdings
| Stock | Weight in VTBNX | Weight in XLE | Difference |
|---|---|---|---|
| NMFSsi Us Gov Money Market Class | 0.00% | 0.04% | 0.04% |
You are not choosing between two funds in isolation.
Whichever of VTBNX and XLE you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $6 a year on a $10,000 investment.
Which is riskier, VTBNX or XLE?
XLE has been the more volatile fund at 26.2% annualized versus 6.3% for VTBNX. Worst drawdown: VTBNX -21.5% vs XLE -26.9%.
Should I hold both VTBNX and XLE?
VTBNX and XLE have a monthly-return correlation of 0.09, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, VTBNX or XLE?
VTBNX yields 3.80% while XLE yields 2.55%, so VTBNX currently pays the higher dividend yield.
Is it better to hold VTBNX or XLE in a taxable account?
XLE is an ETF and VTBNX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is XLE better than VTBNX?
VTBNX has a lower expense ratio. Which one suits a particular account depends on what it is for. This is information, not a recommendation.