Dividend comparison
XLE vs VDE: Which Is Better?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for State Street Energy Select Sector SPDR ETF and Vanguard Energy ETF, side by side. Updated October 21, 2026.
XLE vs VDE: key differences
The short answer, from the latest data on this page.
- Fees. XLE is cheaper at 0.08% a year versus 0.09% for VDE. On $10,000 that is $1 a year less in fees.
- Income. Their trailing yields are almost the same: 2.24% for XLE and 2.16% for VDE. XLE pays quarterly, VDE pays annual.
- Performance. Over the last 5 years, XLE returned 175.3% versus 163.4% for VDE, with dividends reinvested. $10,000 would have grown to $27,529 in XLE and $26,341 in VDE.
- Risk. Their worst declines over the last 5 years were similar: -26.0% for XLE and -26.6% for VDE from peak to trough.
- Diversification. VDE holds 112 positions and XLE holds 21. The ten largest positions make up 78.8% of XLE and 86.4% of VDE.
- Overlap. 85% of the two portfolios overlap by weight, across 22 shared holdings. Owning both adds little diversification.
- Dividend growth. XLE grew its yearly payout 5.8% a year over the last 4 years, versus 5.1% for VDE.
- Size. XLE is the larger fund with $44.8 billion in assets, against $12.7 billion for VDE.
Bottom line: XLE fits better if you care most about stronger 5-year returns. VDE fits better if you care most about broader diversification. With 85% overlap, most investors would hold one or the other rather than both.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | XLE State Street Energy Select Sector SPDR ETF | VDE Vanguard Energy ETF |
|---|---|---|
| Dividend yield (TTM) | 2.24% | 2.16% |
| Dividend / share (TTM) | $1.52 | $4.08 |
| Payout frequency | Quarterly | Annual |
| Last dividend | $0.3803 on Sep 23, 2026 | $1.0519 on Sep 25, 2026 |
| Ex-dividend date | Sep 21, 2026 | Sep 23, 2026 |
| Dividend growth (CAGR) | 5.8% over 4 yrs | 5.1% over 4 yrs |
| Price | $67.97 | $189.18 |
| Dividend growth streak | 1 year | — |
| Beta | -0.02 | -0.01 |
| Max drawdown (5Y) | -26.0% | -26.6% |
| Market cap | $44.65B | $12.70B |
| Exchange | AMEX | AMEX |
| Expense ratio | 0.08% | 0.09% |
| Assets under management | $44.82B | $12.70B |
| Number of holdings | 21 | 112 |
| Top 10 concentration | 78.8% | 86.4% |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
XLE
$18.68/mo
$224 /yr at 2.24% yield
VDE
$17.98/mo
$216 /yr at 2.16% yield
Dividend history
Total dividends paid per share in each calendar year. XLE pays quarterly; VDE pays annual.
| Year | XLE | VDE |
|---|---|---|
| 2025 | $1.4647 | $3.9101 |
| 2024 | $1.4381 | $3.9225 |
| 2023 | $1.4885 | $3.9169 |
| 2022 | $1.6105 | $4.4260 |
| 2021 | $1.1686 | $3.2080 |
Strategy: Sector and thematic
Funds that hold a single industry or theme, such as technology, semiconductors, healthcare or energy. Funds covering the same sector can still differ in concentration rules: some cap the largest positions while others let the biggest companies take a quarter of the fund. Sector funds are usually used to tilt a portfolio rather than as its core.
A single sector can fall far further than the broad market and stay down for years, and the largest names often dominate the fund.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $27,529 in XLE and $26,341 in VDE.
| Period | XLE | VDE |
|---|---|---|
| 1 month | 6.32% | 4.92% |
| 3 months | 18.00% | 16.22% |
| Year to date | 55.04% | 50.24% |
| 1 year | 60.88% | 54.17% |
| 3 years | 64.54% | 59.44% |
| 5 years | 175.29% | 163.41% |
- XLE
- VDE
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Sector allocation
Weight of each sector within the fund. Sectors are aligned on the same row so the two funds can be read against each other directly.
- XLE
- VDE
XLE vs VDE holdings overlap
85% overlap by weight, with 22 holdings in common. Overlap adds up the smaller of the two weights for every stock both funds own, so 100% would mean identical portfolios.
| Largest shared holdings | XLE weight | VDE weight |
|---|---|---|
| XOMEXXONMOBIL HOLDINGS CORP | 23.85% | 22.88% |
| CVXCHEVRON CORP | 17.95% | 14.42% |
| COPCONOCOPHILLIPS | 7.11% | 5.87% |
| MPCMARATHON PETROLEUM CORP | 5.13% | 4.46% |
| VLOVALERO ENERGY CORP | 4.90% | 4.45% |
| PSXPHILLIPS 66 | 4.81% | 3.94% |
| WMBWILLIAMS COS INC | 4.06% | 3.16% |
| EOGEOG RESOURCES INC | 3.99% | 2.85% |
| SLBSLB LTD | 3.54% | 2.83% |
| KMIKINDER MORGAN INC | 3.23% | 2.22% |
Top 10 holdings
Largest positions by portfolio weight.
XLE21 holdings total
Quick verdict
XLE fits better if you care most about stronger 5-year returns. VDE fits better if you care most about broader diversification. With 85% overlap, most investors would hold one or the other rather than both. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how XLE vs VDE fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is XLE or VDE better for dividend income?
It depends on your goals. XLE currently yields 2.24% Trailing Twelve Months (TTM) while VDE yields 2.16%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between XLE and VDE?
State Street Energy Select Sector SPDR ETF (XLE) is an ETF listed on AMEX. Vanguard Energy ETF (VDE) is an ETF listed on AMEX. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which is cheaper, XLE or VDE?
XLE has the lower expense ratio. XLE charges 0.08% a year and VDE charges 0.09%, a difference of $1 a year on a $10,000 investment.
Which has performed better, XLE or VDE?
Over the last 5 years, XLE has the higher total return with dividends reinvested: XLE returned 175.3% and VDE returned 163.4%. Past performance does not predict future returns.
Which is riskier, XLE or VDE?
Measured by the worst peak-to-trough decline over the last five years, VDE has been riskier: XLE fell as much as 26.0% and VDE as much as 26.6%. Their betas are -0.02 and -0.01.
How much do XLE and VDE overlap?
About 85% of the two portfolios overlap by weight, across 22 shared holdings. The largest shared positions are XOM, CVX, COP. Holding both adds little diversification.
How often do XLE and VDE pay dividends?
XLE pays quarterly and VDE pays annual.
How much income does $10,000 in XLE vs VDE generate?
At current TTM yields, $10,000 in XLE would generate roughly $18.68 per month ($224 annually). The same amount in VDE would produce about $17.98 per month ($216 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both XLE and VDE?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare XLE vs VDE with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how XLE and VDE fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.