VTIP vs XLE
Vanguard Short-Term Inflation-Protected Securities ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VTIP or XLE?
XLE has been ahead.
VTIP 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 | VTIP | XLE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $19.8B | $42.4B |
| Dividend Yield | 4.16% | 2.55% |
| Holdings | 25 | 24 |
| YTD Return | +1.13% | +42.82%Best |
| 1Y Return | +1.38% | +47.84%Best |
| 3Y Return (annualized) | +5.10% | +15.50%Best |
| 5Y Return (annualized) | +3.13% | +26.44%Best |
| Volatility (annualized) | 2.4%Best | 27.3% |
| Max Drawdown | -7.1%Best | -76.7% |
| $10,000 over 5 years | $11,666 | $32,316Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Fixed Income | Equity |
| Style | - | Large Cap Value |
| Inception | Oct 12, 2012 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 16, 2012 to Sep 18, 2026 (13.9 years).
VTIP 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 covers the 13.9 years both funds cover.
VTIP vs XLE Performance
Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) 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 VTIP returned +1.38% while XLE returned +47.84%. Year to date, VTIP is up 1.13% versus a gain of 42.82% for XLE.
Over three years, VTIP compounded at +5.10% per year against +15.50% for XLE; over five years the annualized figures are +3.13% and +26.44% respectively. Across the full 14-year window we track, XLE has the edge at +5.57% annualized vs +1.51%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 27.3% compared with 2.4% for VTIP. 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 -7.1% for VTIP and -76.7% 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 0.32. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VTIP 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, VTIP currently yields 4.16% against 2.55% for XLE.
Holdings Overlap
We hold position weights for 24 holdings in VTIP and 22 in XLE, totalling 89.6% 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 24 positions we hold weights for in VTIP and 22 in XLE, against full books of 25 and 24.
What only one of them owns
Measured across the 24 and 22 positions we hold weights for.
VTIP holds 24 positions XLE does not, 89.6% of the fund.
Largest: TII 1.625 04/15/30 5.14%, TII 1.625 10/15/29 5.04%, TII 2.375 10/15/28 4.85%, TII 2.125 04/15/29 4.85%, TII 1.625 10/15/27 4.70%
You are not choosing between two funds in isolation.
Whichever of VTIP 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, VTIP or XLE?
VTIP has an expense ratio of 0.03% while XLE charges 0.08%. VTIP is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VTIP or XLE?
Over the past year VTIP returned +1.38% vs +47.84% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (14 years), VTIP annualized +1.51% vs +5.57% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VTIP or XLE?
XLE has been the more volatile fund at 27.3% annualized versus 2.4% for VTIP. Worst drawdown: VTIP -7.1% vs XLE -76.7%.
Should I hold both VTIP and XLE?
VTIP and XLE have a monthly-return correlation of 0.32, 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, VTIP or XLE?
VTIP yields 4.16% while XLE yields 2.55%, so VTIP currently pays the higher dividend yield.
Is XLE better than VTIP?
VTIP 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.