VTEB vs XLE
Vanguard Tax-Exempt Bond ETF vs State Street Energy Select Sector SPDR ETF
Quick Verdict
VTEB has a lower expense ratio. XLE delivered stronger 1-year returns. VTEB offers more diversification with 3533 holdings.
Side-by-Side Comparison
| Metric | VTEB | XLE | Winner |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.08% | |
| AUM | $46.0B | $38.1B | |
| Dividend Yield | 3.34% | 2.85% | |
| Holdings | 9,952 | 25 | |
| YTD Return | +0.62% | +35.31% | |
| 1Y Return | +5.07% | +49.15% | |
| 3Y Return (annualized) | +3.14% | +14.47% | |
| 5Y Return (annualized) | +0.61% | +23.91% | |
| Volatility (annualized) | 4.9% | 25.1% | |
| Max Drawdown | -17.0% | -76.7% | |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 21, 2015 | Dec 16, 1998 |
VTEB vs XLE Performance
Vanguard Tax-Exempt Bond ETF (VTEB) 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 VTEB returned +5.07% while XLE returned +49.15%. Year to date, VTEB is up 0.62% versus a gain of 35.31% for XLE.
Over three years, VTEB compounded at +3.14% per year against +14.47% for XLE; over five years the annualized figures are +0.61% and +23.91% respectively. Across the full 11-year window we track, XLE has the edge at +6.96% annualized vs +1.27%. 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 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 -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 0.01. They move independently enough that combining them can meaningfully diversify a portfolio.
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 3.34% against 2.85% for XLE.
Holdings Overlap
VTEB and XLE share 0 holdings out of 3555 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, VTEB or XLE?
VTEB has an expense ratio of 0.03% while XLE charges 0.08%. VTEB is the cheaper option. On a $10,000 investment, that is $5 per year of difference.
Which performed better, VTEB or XLE?
Over the past year VTEB returned +5.07% vs +49.15% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (11 years), VTEB annualized +1.27% vs +6.96% for XLE. Past performance does not guarantee future results.
Which is riskier, VTEB or XLE?
XLE has been the more volatile fund at 25.1% annualized versus 4.9% for VTEB. Worst drawdown: VTEB -17.0% vs XLE -76.7%.
Should I hold both VTEB and XLE?
VTEB and XLE have a monthly-return correlation of 0.01, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VTEB and XLE?
VTEB and XLE share 0 common holdings with a 0.0% weight overlap. Combined, they hold 3555 unique securities.
Which pays a higher dividend, VTEB or XLE?
VTEB yields 3.34% while XLE yields 2.85%, so VTEB currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.