VUG vs XLE
Vanguard Morningstar Growth ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VUG or XLE?
Large Cap Growth against Large Cap Value.
VUG has a lower expense ratio. VUG led over 3Y and the full window, XLE over 1Y and 5Y. VUG is less concentrated, with 63.6% of the fund in its ten largest positions against 73.5%.
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 | VUG | XLE |
|---|---|---|
| Expense Ratio | 0.03%Best | 0.08% |
| AUM | $219.5B | $42.4B |
| Dividend Yield | 0.38% | 2.55% |
| Holdings | 146 | 24 |
| YTD Return | +12.47% | +37.78%Best |
| 1Y Return | +15.54% | +39.18%Best |
| 3Y Return (annualized) | +27.10%Best | +14.69% |
| 5Y Return (annualized) | +13.22% | +22.81%Best |
| Volatility (annualized) | 16.5%Best | 25.9% |
| Max Drawdown | -51.4%Best | -76.7% |
| $10,000 over 5 years | $18,604 | $27,936Best |
| Top 10 Weight | 63.6%Best | 73.5% |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Growth | Large Cap Value |
| Inception | Jan 26, 2004 | Dec 16, 1998 |
Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 25, 2026 (22.7 years).
VUG 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 22.7 years both funds cover.
VUG vs XLE Performance
Vanguard Morningstar Growth ETF (VUG) 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 VUG returned +15.54% while XLE returned +39.18%. Year to date, VUG is up 12.47% versus a gain of 37.78% for XLE.
Over three years, VUG compounded at +27.10% per year against +14.69% for XLE; over five years the annualized figures are +13.22% and +22.81% respectively. Across the full 23-year window we track, VUG has the edge at +11.32% annualized vs +7.72%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.9% compared with 16.5% for VUG. 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 -51.4% for VUG 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 0.47. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VUG 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, VUG currently yields 0.38% against 2.55% for XLE.
Holdings Overlap
0.3% of VUG's money is in holdings XLE also owns. 6.8% of XLE's money is in holdings VUG also owns.
XLE and VUG share little of their money.
3 positions in common, counted across the 147 positions we hold weights for in VUG and 22 in XLE, against full books of 146 and 24.
What only one of them owns
Measured across the 147 and 22 positions we hold weights for.
VUG holds 143 positions XLE does not, 99.5% of the fund.
Largest: NVDA 12.81%, AAPL 12.59%, MSFT 9.59%, GOOGL 5.80%, AMZN 5.15%
You are not choosing between two funds in isolation.
Whichever of VUG 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, VUG or XLE?
VUG has an expense ratio of 0.03% while XLE charges 0.08%. VUG is the cheaper option, by $5 a year on a $10,000 investment.
Which performed better, VUG or XLE?
Over the past year VUG returned +15.54% vs +39.18% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (23 years), VUG annualized +11.32% vs +7.72% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VUG or XLE?
XLE has been the more volatile fund at 25.9% annualized versus 16.5% for VUG. Worst drawdown: VUG -51.4% vs XLE -76.7%.
Should I hold both VUG and XLE?
VUG and XLE have a monthly-return correlation of 0.47, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VUG and XLE?
6.8% of XLE's money is in holdings VUG also owns. 6.8% of XLE's is in holdings VUG also owns. They hold 3 positions in common, counted across the 147 positions we hold weights for in VUG and 22 in XLE.
Which pays a higher dividend, VUG or XLE?
VUG yields 0.38% while XLE yields 2.55%, so XLE currently pays the higher dividend yield.
Is XLE better than VUG?
VUG has a lower expense ratio. VUG led over 3Y and the full window, XLE over 1Y and 5Y. VUG is less concentrated, with 63.6% of the fund in its ten largest positions against 73.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.