VXF vs XLE
Vanguard Extended Market ETF vs State Street Energy Select Sector SPDR ETF
Which is better, VXF or XLE?
Mid Cap Blend against Large Cap Value.
VXF has a lower expense ratio. VXF led over 3Y and the full window, XLE over 1Y and 5Y.
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 | VXF | XLE |
|---|---|---|
| Expense Ratio | 0.05%Best | 0.08% |
| AUM | $30.5B | $42.4B |
| Dividend Yield | 1.01% | 2.55% |
| Holdings | 3,385 | 24 |
| YTD Return | +12.97% | +44.66%Best |
| 1Y Return | +14.06% | +50.72%Best |
| 3Y Return (annualized) | +18.25%Best | +15.55% |
| 5Y Return (annualized) | +6.14% | +26.06%Best |
| Volatility (annualized) | 18.7%Best | 25.4% |
| Max Drawdown | -59.4%Best | -76.7% |
| $10,000 over 5 years | $13,471 | $31,834Best |
| Fund Family | Vanguard (US) | SPDR State Street Global Advisors |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Value |
| Inception | Dec 27, 2001 | Dec 16, 1998 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Jan 4, 2002 to Sep 11, 2026 (24.7 years).
VXF 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 24.7 years both funds cover.
VXF vs XLE Performance
Vanguard Extended Market ETF (VXF) 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 VXF returned +14.06% while XLE returned +50.72%. Year to date, VXF is up 12.97% versus a gain of 44.66% for XLE.
Over three years, VXF compounded at +18.25% per year against +15.55% for XLE; over five years the annualized figures are +6.14% and +26.06% respectively. Across the full 25-year window we track, VXF has the edge at +8.88% annualized vs +7.55%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
XLE has been the more volatile fund, with annualized monthly volatility of 25.4% compared with 18.7% for VXF. 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 -59.4% for VXF 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 0.61. They move together some of the time, and apart the rest.
Fees and Cost Over Time
VXF charges 0.05% per year while XLE charges 0.08%. On a $10,000 position that is $5 vs $8 annually, a gap of $3 per year that compounds over a long holding period. On income, VXF currently yields 1.01% against 2.55% for XLE.
Holdings Overlap
We hold position weights for 3,295 holdings in VXF and 22 in XLE, totalling 94.2% and 99.9% 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 3,295 positions we hold weights for in VXF and 22 in XLE, against full books of 3,385 and 24.
You are not choosing between two funds in isolation.
Whichever of VXF 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, VXF or XLE?
VXF has an expense ratio of 0.05% while XLE charges 0.08%. VXF is the cheaper option, by $3 a year on a $10,000 investment.
Which performed better, VXF or XLE?
Over the past year VXF returned +14.06% vs +50.72% for XLE, so XLE leads on 1-year performance. Over the longest common window we track (25 years), VXF annualized +8.88% vs +7.55% for XLE. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VXF or XLE?
XLE has been the more volatile fund at 25.4% annualized versus 18.7% for VXF. Worst drawdown: VXF -59.4% vs XLE -76.7%.
Should I hold both VXF and XLE?
VXF and XLE have a monthly-return correlation of 0.61, 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, VXF or XLE?
VXF yields 1.01% while XLE yields 2.55%, so XLE currently pays the higher dividend yield.
Is XLE better than VXF?
VXF has a lower expense ratio. VXF led over 3Y and the full window, XLE over 1Y and 5Y. Which one suits a particular account depends on what it is for. This is information, not a recommendation.