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ETF Comparison

VDE vs XLE: Which Is the Better Pick in 2026?

A head-to-head comparison of Vanguard Energy ETF and State Street Energy Select Sector SPDR ETF covering yield, cost, risk, and income potential.

Data updated July 15, 2026

ETFs115
Total AUM$4484B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

Vanguard is known for offering low-cost, passively managed ETFs that emphasize broad market exposure and long-term investing. The company operates 175 ETFs across diverse fund families including Index, Bond, Equity, Dividend, Income, International, Factor, and ESG strategies, serving investors with various goals from core portfolio building to specialized income generation. Notable for its scale and popular tickers like VB (total U.S. small-cap), BND (total bond market), and VBIAX (international bonds), Vanguard focuses on providing comprehensive, index-based investment solutions with an emphasis on cost efficiency and accessibility.

See our curated list of related YouTube videos on VDE.

ETFs182
Total AUM$2117B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLE.

Side-by-side snapshot

VDEXLE
Full nameVanguard Energy ETFState Street Energy Select Sector SPDR ETF
IssuerVanguardState Street
Last Close$160.91 as of July 15, 2026$56.95 as of July 15, 2026
Distribution yield2.57%2.70%
Distribution Safety Score 9090
Expense ratio0.10%0.09%
AUM$9.85B$39.1B
Distribution frequencyQuarterlyQuarterly
Underlying indexMSCI US Investable Market Energy 25/50 IndexEnergy Select Sector Index
ObjectiveTracks the MSCI US Investable Market Energy 25/50 Index.Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset classEquityEquity
Inception date09/23/200412/16/1998
Beta-0.01-0.02
Last dividend$1.0321$0.3849
Ex-dividend date06/24/202609/21/2026

Bottom lineVDE and XLE are nearly interchangeable — both offer very similar exposure with very similar cost and risk. The clearest tie-breaker is cost: XLE is cheaper at 0.09% vs 0.10%.

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

VDE has outpaced XLE over the trailing twelve months, posting a 33.76% total return against 33.23%. The picture flips over 10 years, though — XLE has compounded at 9.40% a year, ahead of VDE at 9.05%. Figures are total returns: price change plus every distribution reinvested.

SymbolYTD1Y3Y5Y10YSince Sep 2004Volatility Sharpe Sortino Max drawdown
VDE26.63%33.76%15.83%21.05%9.05%8.19%21.8%0.470.63-21.4%
XLE26.47%33.23%15.46%21.13%9.40%8.57%21.7%0.460.61-20.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Sep 2004” measures every fund from September 29, 2004 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

VDE (Vanguard Energy ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLE offers the higher yield at 2.70% vs 2.57% for VDE. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLE is cheaper with an expense ratio of 0.09% compared to 0.10%.

They track different benchmarks: VDE is linked to MSCI US Investable Market Energy 25/50 Index while XLE tracks Energy Select Sector Index, which means their performance drivers differ.

XLE is the larger fund by assets ($39.1B), which generally means tighter spreads and better liquidity.

Deep dive

Yield & income

On a $10,000 investment, VDE would generate roughly $21.42/month, while XLE would produce $22.50/month, at current distribution rates. Both pay quarterly distributions.

VDE yield2.57%
XLE yield2.70%
Monthly diff on $10K$1.08

Cost & efficiency

Over 10 years on $10,000, VDE would cost approximately $100 in fees vs $90 for XLE (simplified, not compounded). The $10.00 difference may be offset by yield or performance.

VDE ER0.10%
XLE ER0.09%

Strategy & risk

VDE tracks MSCI US Investable Market Energy 25/50 Index, while XLE tracks Energy Select Sector Index with an oil approach.

VDE beta-0.01
XLE beta-0.02

Fund details

VDE is managed by Vanguard (launched 09/23/2004) with $9.85B in assets. XLE is managed by State Street (launched 12/16/1998) with $39.1B in assets.

VDE AUM$9.85B
XLE AUM$39.1B

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Frequently asked questions

Is VDE or XLE better for dividend income?

It depends on your goals. XLE currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between VDE and XLE?

VDE (Vanguard Energy ETF) tracks MSCI US Investable Market Energy 25/50 Index, while XLE (State Street Energy Select Sector SPDR ETF) tracks Energy Select Sector Index with an oil approach. They are issued by Vanguard and State Street respectively.

Can I hold both VDE and XLE?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Which has lower fees, VDE or XLE?

VDE has an expense ratio of 0.10% while XLE charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in VDE vs XLE generate?

At current rates, $10,000 in VDE would generate roughly $21.42 per month ($257.00 annually). The same in XLE would produce about $22.50 per month ($270.00 annually).

Which has performed better historically, VDE or XLE?

VDE has outpaced XLE over the trailing twelve months, posting a 33.76% total return against 33.23%. The picture flips over 10 years, though — XLE has compounded at 9.40% a year, ahead of VDE at 9.05%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.

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