VTEB vs XLE
Vanguard Tax-Exempt Bond ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VTEB or XLE?
Municipal Bond against Large Cap Value.
VTEB has a lower expense ratio. XLE led over 1Y, 3Y, 5Y and the full window.
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 | VTEB | XLE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $48.5B | $42.4B |
| Dividend Yield | 3.44% | 2.55% |
| Holdings | 10,566 | 24 |
| YTD Return | -1.99% | +38.71%Best |
| 1Y Return | -0.41% | +45.69%Best |
| 3Y Return (annualized) | +2.88% | +15.20%Best |
| 5Y Return (annualized) | +0.10% | +25.61%Best |
| Volatility (annualized) | 4.9%Best | 29.6% |
| Max Drawdown | -17.0%Best | -70.1% |
| $10,000 over 5 years | $10,050 | $31,270Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Value |
| Inception | Aug 21, 2015 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Aug 25, 2015 to Sep 21, 2026 (11.1 years).
VTEB 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 is available from the range buttons; it is not the opening view here because over the whole period one of these two funds moves so much further than the other that its line would sit flat on the axis.
VTEB vs XLE Performance
Vanguard Tax-Exempt Bond ETF (VTEB) 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 VTEB returned -0.41% while XLE returned +45.69%. Year to date, VTEB is down 1.99% versus a gain of 38.71% for XLE.
Over three years, VTEB compounded at +2.88% per year against +15.20% for XLE; over five years the annualized figures are +0.10% and +25.61% respectively. Across the full 11-year window we track, XLE has the edge at +8.95% annualized vs +1.02%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 29.6% compared with 4.9% for VTEB. 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 -17.0% for VTEB and -70.1% 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 0.01. They move largely independently of each other.
Fees and Cost Over Time
VTEB 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, VTEB currently yields 3.44% against 2.55% for XLE.
Holdings Overlap
We hold position weights for 17 holdings in VTEB and 22 in XLE, totalling 0.0% and 99.7% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 17 positions we hold weights for in VTEB and 22 in XLE, against full books of 10,566 and 24.
You are not choosing between two funds in isolation.
Whichever of VTEB 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, VTEB or XLE?
VTEB has an expense ratio of 0.03% while XLE charges 0.08%. VTEB is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTEB or XLE?
Over the past year VTEB returned -0.41% vs +45.69% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (11 years), VTEB annualized +1.02% vs +8.95% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTEB or XLE?
XLE has been the more volatile fund at 29.6% annualized versus 4.9% for VTEB. Worst drawdown: VTEB -17.0% vs XLE -70.1%.
Should I hold both VTEB and XLE?
VTEB and XLE have a monthly-return correlation of 0.01, 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, VTEB or XLE?
VTEB yields 3.44% while XLE yields 2.55%, so VTEB currently pays the higher dividend yield.
Is XLE better than VTEB?
VTEB has a lower expense ratio. XLE led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.