XLE vs VDE: Returns, Drawdowns and Dividends Since 2016
XLE (State Street Energy Select Sector SPDR ETF) and VDE (Vanguard Energy ETF) moved almost in lockstep: their daily returns had a correlation of 0.997, where 1 would mean identical. XLE came out ahead, returning 11.4% a year with dividends reinvested from January 2016 to November 2026, against 10.9% for VDE.
Bought on any day and held five years, XLE finished ahead 66% of the time. XLE also fell less at its worst: 66.8%, against 69.3% for VDE.
| Measure | XLE | VDE |
|---|---|---|
| Annual return | 11.4% | 10.9% |
| $10,000 grew to | $32,284 | $30,607 |
| Worst decline | −66.8%Mar 2020 | −69.3%Mar 2020 |
| Volatility Volatility How much the fund's daily returns swing: their standard deviation over this period, annualized with the square root of 252 trading days. | 29.4% | 29.8% |
| Sharpe ratio Sharpe ratio Return above T-bills for each unit of risk: daily returns minus the T-bill ETF BIL, averaged, divided by their standard deviation and annualized. Higher is better. T-bill funds show none. Sharpe ratio calculator | 0.44 | 0.42 |
| 12-month yield 12-month yield Cash dividends with ex-dividend dates in the past 12 months, divided by the latest closing price. | 2.4% | 2.3% |
| Best year | +64.2%2022 | +62.9%2022 |
| Worst year | −32.5%2020 | −33.1%2020 |
| Correlation between them Correlation How closely the two funds' daily returns moved together over this period: 1 means identical every day, 0 means no relation. | 0.997 | |
XLE: State Street Energy Select Sector SPDR ETFVDE: Vanguard Energy ETF
Jan 4, 2016 to Nov 4, 2026, dividends reinvested.
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Worst declines
XLE fell 66.8% from May 21, 2018 to Mar 18, 2020 and was back at its high on Jan 18, 2022. VDE fell 69.3% from Oct 9, 2018 to Mar 18, 2020 and was back at its high on Feb 1, 2022.
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Year by year
XLE was ahead in 7 of the 11 calendar years.
| Year | XLE | VDE | Ahead (pts) |
|---|---|---|---|
| 2026 (to Nov 4) | +44.9% | +42.7% | XLE+2.2 |
| 2025 | +7.9% | +7.1% | XLE+0.8 |
| 2024 | +5.5% | +6.8% | VDE+1.2 |
| 2023 | −0.7% | +0.0% | VDE+0.7 |
| 2022 | +64.2% | +62.9% | XLE+1.3 |
| 2021 | +53.3% | +56.2% | VDE+2.9 |
| 2020 | −32.5% | −33.1% | XLE+0.5 |
| 2019 | +11.7% | +9.3% | XLE+2.4 |
| 2018 | −18.2% | −20.0% | XLE+1.8 |
| 2017 | −0.9% | −2.5% | XLE+1.6 |
| 2016 (from Jan 4) | +28.1% | +29.2% | VDE+1.2 |
Held for 1, 3 or 5 years: which came out ahead
Buy on any trading day from Jan 4, 2016, hold for a set time, and see which fund ended higher. The periods overlap, so they show how much the start date mattered, not separate results.
| Hold | Days tested | Ahead more often | Median lead (pts) |
|---|---|---|---|
| 1 year | 2,474 | XLE57% | +0.4 |
| 3 years | 1,970 | XLE60% | +1.2 |
| 5 years | 1,466 | XLE66% | +3.5 |
Median lead is the typical gap in total return across all start dates, in percentage points. The latest 5-year hold starts on Oct 27, 2021.
Dividends
Over the past 12 months XLE paid 2.4% of its price in dividends and VDE 2.3%. The returns above already include them, reinvested on each ex-dividend date.
Dividends per share by year
| Year | XLE | VDE |
|---|---|---|
| 2026 (to Nov 4) | $1.15 3 payments | $3.05 3 payments |
| 2025 | $1.46 4 payments | $3.91 4 payments |
| 2024 | $1.44 4 payments | $3.92 4 payments |
| 2023 | $1.49 4 payments | $3.92 4 payments |
| 2022 | $1.61 4 payments | $4.43 4 payments |
| 2021 | $1.17 4 payments | $3.21 4 payments |
| 2020 | $1.07 4 payments | $2.47 4 payments |
| 2019 | $2.02 5 payments | $2.78 4 payments |
| 2018 | $1.01 4 payments | $2.58 4 payments |
| 2017 | $1.10 4 payments | $2.87 4 payments |
| 2016 (from Jan 4) | $0.85 4 payments | $2.41 4 payments |
Per share in today's shares (earlier amounts are restated for share splits), by ex-dividend date.
The two funds
- XLE
- State Street Energy Select Sector SPDR ETF, an ETF launched Dec 22, 1998. FinLab prices start Jan 4, 2016.
- XLE price and signal backtests
- VDE
- Vanguard Energy ETF, an ETF launched Sep 29, 2004. FinLab prices start Jan 4, 2016.
- VDE price and signal backtests
More comparisons
Source: FinLab U.S. fund prices, Jan 4, 2016 to Nov 4, 2026, the days both funds traded. Returns use prices adjusted for dividends and splits, before taxes; annual return is compounded.
For research and education. Past returns do not guarantee future results, and this is not investment advice.