# VDE alternatives: 6 similar ETFs compared

> ETFs similar to VDE, closest first, with each fund's fee, what it tracks, and returns and worst drops on the same dates as VDE. Updated daily.

The ETFs most like VDE are XLE, GSG and DBC. XLE holds US oil, gas and other energy companies, like VDE. XLE costs less: 0.08% a year against 0.09%.

Written by [the Tactfolio research team](https://tactfolio.com/about/editorial-policy). Fund facts checked October 17, 2026. Prices through October 16, 2026.

## Key points

- 6 funds can stand in for VDE: 1 of the same kind and 5 related funds.
- VDE charges 0.09% a year (about $9 on $10,000). The cheapest alternative here, XLE, charges 0.08%.
- XLE moved most like VDE: a daily correlation of 1.00 over about the last five years.
- Returns and drops for each pair use the same dates for both funds.

## VDE alternatives at a glance

Each fund below can stand in for VDE, closest first. "Same kind" funds hold the same kind of stocks through a different index. "Related" funds make a different bet that often moves the same way.

| ETF | How close | Yearly fee | Fee on $10,000 | Tracks |
| --- | --- | --- | --- | --- |
| **VDE** | This fund | 0.09% | $9 | MSCI US Investable Market Energy 25/50 Index |
| [XLE](https://tactfolio.com/etf/XLE.md) | Same kind of fund | 0.08% | $8 | Energy Select Sector Index |
| [GSG](https://tactfolio.com/etf/GSG.md) | Related fund | 0.75% | $75 | S&P GSCI Total Return Index |
| [DBC](https://tactfolio.com/etf/DBC.md) | Related fund | 0.85% | $85 | DBIQ Optimum Yield Diversified Commodity Index Excess Return |
| [DJP](https://tactfolio.com/etf/DJP.md) | Related fund | 0.7% | $70 | Bloomberg Commodity Index Total Return |
| [XLB](https://tactfolio.com/etf/XLB.md) | Related fund | 0.08% | $8 | Materials Select Sector Index |
| [VAW](https://tactfolio.com/etf/VAW.md) | Related fund | 0.09% | $9 | MSCI US Investable Market Materials 25/50 Index |

Fees come from each fund company, checked on the dates shown on each fund's page.

## How VDE and its alternatives did over the same dates

Each row measures the alternative and VDE on the days both traded, so neither gets a head start. Correlation shows how closely their daily moves matched over about the last five years. A value of 1 means they always moved together.

| ETF | Moves with VDE | Per year | VDE per year | Worst drop | VDE worst drop | Since |
| --- | --- | --- | --- | --- | --- | --- |
| [XLE](https://tactfolio.com/etf/XLE.md) | 1.00 | 9.4% | 8.8% | −71.3% | −74.7% | September 2004 |
| [GSG](https://tactfolio.com/etf/GSG.md) | 0.67 | −1.4% | 7.2% | −89.6% | −74.7% | July 2006 |
| [DBC](https://tactfolio.com/etf/DBC.md) | 0.67 | 2.8% | 6.9% | −76.4% | −74.7% | February 2006 |
| [DJP](https://tactfolio.com/etf/DJP.md) | 0.60 | 0.4% | 7.1% | −78.3% | −74.7% | October 2006 |
| [XLB](https://tactfolio.com/etf/XLB.md) | 0.46 | 8.5% | 8.8% | −59.8% | −74.7% | September 2004 |
| [VAW](https://tactfolio.com/etf/VAW.md) | 0.46 | 8.7% | 8.8% | −62.2% | −74.7% | September 2004 |

Prices through October 16, 2026. Figures use daily closing prices adjusted for splits, with dividends reinvested. They do not include taxes or the cost of buying and selling. Past results do not tell you what will happen next.

## Each VDE alternative, compared

### XLE: State Street Energy Select Sector SPDR ETF

XLE also holds US oil, gas and other energy companies. It tracks the Energy Select Sector Index, while VDE tracks the MSCI US Investable Market Energy 25/50 Index.

It charges 0.08% a year, about $8 on $10,000, against $9 for VDE. It held 21 stocks, against 111 for VDE.

From September 2004 to October 2026, XLE returned about 9.4% a year and VDE returned about 8.8% a year. Over about the last five years they moved almost exactly together (correlation 1.00).

Read the [XLE fund page](https://tactfolio.com/etf/XLE.md) for its returns by year and worst drop.

### GSG: iShares S&P GSCI Commodity-Indexed Trust

GSG is a looser match. It holds futures on oil, metals, grains and other raw materials, while VDE holds US oil, gas and other energy companies.

It charges 0.75% a year, about $75 on $10,000, against $9 for VDE.

From July 2006 to October 2026, GSG lost about 1.4% a year and VDE returned about 7.2% a year. Over about the last five years they often moved together, but not always (correlation 0.67).

Read the [GSG fund page](https://tactfolio.com/etf/GSG.md) for its returns by year and worst drop.

### DBC: Invesco DB Commodity Index Tracking Fund

DBC is a looser match. It holds futures on oil, metals, grains and other raw materials, while VDE holds US oil, gas and other energy companies.

It charges 0.85% a year, about $85 on $10,000, against $9 for VDE.

From February 2006 to October 2026, DBC returned about 2.8% a year and VDE returned about 6.9% a year. Over about the last five years they often moved together, but not always (correlation 0.67).

Read the [DBC fund page](https://tactfolio.com/etf/DBC.md) for its returns by year and worst drop.

### DJP: iPath Bloomberg Commodity Index Total Return ETN

DJP is a looser match. It holds futures on oil, metals, grains and other raw materials, while VDE holds US oil, gas and other energy companies.

It charges 0.7% a year, about $70 on $10,000, against $9 for VDE.

From October 2006 to October 2026, DJP returned about 0.4% a year and VDE returned about 7.1% a year. Over about the last five years they often moved together, but not always (correlation 0.60).

Read the [DJP fund page](https://tactfolio.com/etf/DJP.md) for its returns by year and worst drop.

### XLB: State Street Materials Select Sector SPDR ETF

XLB is a looser match. It holds US makers of chemicals, metals, paper and packaging, while VDE holds US oil, gas and other energy companies.

It charges 0.08% a year, about $8 on $10,000, against $9 for VDE. It held 24 stocks, against 111 for VDE.

From September 2004 to October 2026, XLB returned about 8.5% a year and VDE returned about 8.8% a year. Over about the last five years they often moved in different ways (correlation 0.46).

Read the [XLB fund page](https://tactfolio.com/etf/XLB.md) for its returns by year and worst drop.

### VAW: Vanguard Materials ETF

VAW is a looser match. It holds US makers of chemicals, metals, paper and packaging, while VDE holds US oil, gas and other energy companies.

It charges 0.09% a year, about $9 on $10,000, against $9 for VDE. It held 110 stocks, against 111 for VDE.

From September 2004 to October 2026, VAW returned about 8.7% a year and VDE returned about 8.8% a year. Over about the last five years they often moved in different ways (correlation 0.46).

Read the [VAW fund page](https://tactfolio.com/etf/VAW.md) for its returns by year and worst drop.

## VDE versions from other fund companies

Some people keep all their funds with one company. Here is the closest fund to VDE from each other company on this page:

- **SPDR (State Street):** [XLE](https://tactfolio.com/etf/XLE.md), State Street Energy Select Sector SPDR ETF (same kind of fund, 0.08% a year)
- **iShares (BlackRock):** [GSG](https://tactfolio.com/etf/GSG.md), iShares S&P GSCI Commodity-Indexed Trust (related fund, 0.75% a year)
- **Invesco:** [DBC](https://tactfolio.com/etf/DBC.md), Invesco DB Commodity Index Tracking Fund (related fund, 0.85% a year)
- **iPath (Barclays):** [DJP](https://tactfolio.com/etf/DJP.md), iPath Bloomberg Commodity Index Total Return ETN (related fund, 0.7% a year)

Most brokers let you buy any ETF, whoever runs it. Mutual fund versions, such as a fund company's index mutual fund, are not listed here.

## How to choose between VDE and its alternatives

- **What it tracks.** A fund on the same index holds the same stocks. A different index can mean different weights, more or fewer holdings, or a different mix.
- **The fee.** The difference is often small. On $10,000, VDE costs about $9 a year. XLE costs about $8.
- **History.** An older fund has been through more bad markets, so you can see how far it fell.
- **What you already own.** Two funds that move together add little variety. A fund with a low correlation behaves more on its own.

## Swapping VDE to harvest a tax loss

Some investors sell a fund at a loss to lower their taxes, then buy a similar fund so they stay invested. This is called tax-loss harvesting.

The IRS wash sale rule blocks the loss if you buy a "substantially identical" security within 30 days before or after the sale. The IRS has not said exactly when two funds count. Funds on the same index are more likely to. Funds on a different index, such as XLE, GSG or DBC, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in [Publication 550](https://www.irs.gov/publications/p550).

## Test VDE and its alternatives in a backtest

Tactfolio is a platform where you build rules-based investing strategies, backtest them on decades of real prices, share them, and run them automatically in your own Alpaca account. Open the [builder](https://tactfolio.com/builder), add VDE and XLE, and see how each would have done on the same dates, or how a mix of both would have done.

## The details

Alternatives are picked from facts, not from returns. First come funds that track the same index as VDE. Then come funds that hold the same kind of stocks through another index. Last come funds from a close category that make a different bet. Leveraged funds are only listed as alternatives to other leveraged funds.

Within each group, the funds whose daily returns moved most like VDE over about the last five years come first. Returns and worst drops use Tactfolio's stored daily prices, adjusted for splits, with dividends reinvested. Each alternative is measured with VDE only on days both traded. Read [what a backtest simulates](https://tactfolio.com/docs/backtests.md) for more on these measures.

## Research and test it

- [S&P 500 index](https://tactfolio.com/learn/sp500-index): The S&P 500 tracks about 500 large US companies. Learn how stocks get in, how the index is weighted, how to invest in it, and how far it has fallen before.
- [What is an ETF](https://tactfolio.com/learn/what-is-an-etf): An ETF is a fund that trades like a stock. Learn how ETFs work, what they cost, the main types, and the risks, with SEC sources.
- [ETF screener](https://tactfolio.com/screener.md): A free ETF screener for 162 US-listed funds. Filter by type, issuer and fee, sort by returns or worst drop, and compare funds side by side.
- [ETF expense ratio](https://tactfolio.com/learn/etf-expense-ratio): What an ETF expense ratio is, how the fund charges it, and how 0.03% vs 1% adds up over 10 and 30 years, with real fund examples.
- [Backtest a portfolio](https://tactfolio.com/trading-tools/backtest-portfolio): Backtest a portfolio of US stocks and ETFs. Enter tickers and shares, pick when to rebalance, and get the results with a link to share.
- [Backtesting](https://tactfolio.com/backtesting): Free backtesting software for stocks, ETFs, and crypto perps.

## Common questions

### What ETF is most similar to VDE?

XLE is the closest. XLE also holds US oil, gas and other energy companies. It tracks the Energy Select Sector Index, while VDE tracks the MSCI US Investable Market Energy 25/50 Index. Over about the last five years they moved almost exactly together.

### Is there a cheaper alternative to VDE?

Yes. XLE charges 0.08% a year and XLB charges 0.08% a year, against 0.09% for VDE. On $10,000 that is about $8 a year instead of $9.

### Is VDE or XLE better?

Neither is better for everyone. From September 2004 to October 2026, VDE returned about 8.8% a year and XLE returned about 9.4% a year. VDE charges 0.09% a year and XLE charges 0.08%. Past returns do not tell you what comes next.

### What if I had put $10,000 in VDE 10 years ago?

It would have grown to about $27,836 by October 16, 2026, with dividends reinvested. That is about 10.8% a year. Past returns do not tell you what comes next.

## Sources

- [Vanguard: Vanguard Energy ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vde)
- [SPDR (State Street): State Street Energy Select Sector SPDR ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-energy-select-sector-spdr-etf-xle)
- [iShares (BlackRock): iShares S&P GSCI Commodity-Indexed Trust fund page](https://www.ishares.com/us/products/239757/ishares-sp-gsci-commodityindexed-trust)
- [Invesco: Invesco DB Commodity Index Tracking Fund fund page](https://www.sec.gov/Archives/edgar/data/1328237/000119312526368455/d105975d424b3.htm)
- [iPath (Barclays): iPath Bloomberg Commodity Index Total Return ETN fund page](https://www.sec.gov/Archives/edgar/data/312070/000191870426003783/form424b2.htm)
- [SPDR (State Street): State Street Materials Select Sector SPDR ETF fund page](https://www.ssga.com/us/en/intermediary/etfs/state-street-materials-select-sector-spdr-etf-xlb)
- [Vanguard: Vanguard Materials ETF fund page](https://investor.vanguard.com/investment-products/etfs/profile/vaw)
- [IRS Publication 550: wash sales](https://www.irs.gov/publications/p550)

> Not financial advice. Tactfolio is a research and automation tool. It is not a broker or a financial adviser. This page is for education only. Backtests are hypothetical. They show how rules would have done on past prices, not how they will do. All investing involves risk, including losing the money you put in.