VWO vs XLE
Vanguard FTSE Emerging Markets ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VWO or XLE?
Large Cap Blend against Large Cap Value.
VWO has a lower expense ratio. VWO led over 3Y, XLE over 1Y, 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 | VWO | XLE |
|---|---|---|
| Expense Ratio | 0.06%Best | 0.08% |
| AUM | $127.3B | $39.5B |
| Dividend Yield | 2.29% | 2.37% |
| Holdings | 6,378 | 48 |
| YTD Return | +9.13% | +45.39%Best |
| 1Y Return | +12.13% | +52.54%Best |
| 3Y Return (annualized) | +18.11%Best | +17.29% |
| 5Y Return (annualized) | +6.49% | +22.48%Best |
| Volatility (annualized) | 20.0%Best | 26.2% |
| Max Drawdown | -68.3%Best | -76.7% |
| $10,000 over 5 years | $13,694 | $27,563Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Value |
| Inception | Mar 4, 2005 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Mar 10, 2005 to Oct 9, 2026 (21.6 years).
VWO 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 21.6 years both funds cover.
VWO vs XLE Performance
Vanguard FTSE Emerging Markets ETF (VWO) 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 VWO returned +12.13% while XLE returned +52.54%. Year to date, VWO is up 9.13% versus a gain of 45.39% for XLE.
Over three years, VWO compounded at +18.11% per year against +17.29% for XLE; over five years the annualized figures are +6.49% and +22.48% respectively. Across the full 22-year window we track, XLE has the edge at +6.35% annualized vs +4.90%.
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 20.0% for VWO. 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 -68.3% for VWO 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 0.56. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VWO charges 0.06% per year while XLE charges 0.08%. On a $10,000 position that is $6 vs $8 annually, a gap of $2 per year that compounds over a long holding period. On income, VWO currently yields 2.29% against 2.37% for XLE.
Holdings Overlap
At least 1.7% of XLE's money is in holdings VWO also owns.
Stated as a floor: for VWO, our book for it covers 89.2% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
XLE and VWO share little of their money.
1 positions in common, counted across the 4,688 positions we hold weights for in VWO and 22 in XLE, against full books of 6,378 and 48.
Top Shared Holdings
| Stock | Weight in VWO | Weight in XLE | Difference |
|---|---|---|---|
| HALHalliburton Co. | 0.08% | 1.70% | 1.62% |
You are not choosing between two funds in isolation.
Whichever of VWO 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, VWO or XLE?
VWO has an expense ratio of 0.06% while XLE charges 0.08%. VWO is the cheaper option, by $2 a year on a $10,000 investment.
Which performed better, VWO or XLE?
Over the past year VWO returned +12.13% vs +52.54% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (22 years), VWO annualized +4.90% vs +6.35% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VWO or XLE?
XLE has been the more volatile fund at 26.2% annualized versus 20.0% for VWO. Worst drawdown: VWO -68.3% vs XLE -76.7%.
Should I hold both VWO and XLE?
VWO and XLE have a monthly-return correlation of 0.56, 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 VWO and XLE?
At least 1.7% of XLE's money is in holdings VWO also owns. Our book for VWO is partial, so the real figure is this or higher. They hold 1 positions in common, counted across the 4,688 positions we hold weights for in VWO and 22 in XLE.
Which pays a higher dividend, VWO or XLE?
VWO yields 2.29% while XLE yields 2.37%, so XLE currently pays the higher dividend yield.
Is XLE better than VWO?
VWO has a lower expense ratio. VWO led over 3Y, XLE over 1Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.