XLE alternatives and similar ETFs

XLE alternatives at a glance#

Each fund below can stand in for XLE, 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.

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

How XLE and its alternatives did over the same dates#

Each row measures the alternative and XLE 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.

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 XLE alternative, compared#

VDE: Vanguard Energy ETF#

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

It charges 0.09% a year, about $9 on $10,000, against $8 for XLE. It held 111 stocks, against 21 for XLE.

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

Read the VDE fund page 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 XLE holds US oil, gas and other energy companies.

It charges 0.75% a year, about $75 on $10,000, against $8 for XLE.

From July 2006 to October 2026, GSG lost about 1.4% a year and XLE returned about 7.8% a year. Over about the last five years they often moved together, but not always (correlation 0.66).

Read the GSG fund page 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 XLE holds US oil, gas and other energy companies.

It charges 0.85% a year, about $85 on $10,000, against $8 for XLE.

From February 2006 to October 2026, DBC returned about 2.8% a year and XLE returned about 7.5% a year. Over about the last five years they often moved together, but not always (correlation 0.66).

Read the DBC fund page 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 XLE holds US oil, gas and other energy companies.

It charges 0.7% a year, about $70 on $10,000, against $8 for XLE.

From October 2006 to October 2026, DJP returned about 0.4% a year and XLE returned about 7.8% a year. Over about the last five years they often moved in different ways (correlation 0.59).

Read the DJP fund page 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 XLE holds US oil, gas and other energy companies.

It charges 0.08% a year, about $8 on $10,000, against $8 for XLE. It held 24 stocks, against 21 for XLE.

From December 1998 to October 2026, XLB returned about 8.2% a year and XLE returned about 9.4% a year. Over about the last five years they often moved in different ways (correlation 0.45).

Read the XLB fund page 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 XLE holds US oil, gas and other energy companies.

It charges 0.09% a year, about $9 on $10,000, against $8 for XLE. It held 110 stocks, against 21 for XLE.

From January 2004 to October 2026, VAW returned about 8.9% a year and XLE returned about 10.2% a year. Over about the last five years they often moved in different ways (correlation 0.45).

Read the VAW fund page for its returns by year and worst drop.

XLE versions from other fund companies#

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

• Vanguard: VDE, Vanguard Energy ETF (same kind of fund, 0.09% a year)
• iShares (BlackRock): GSG, iShares S&P GSCI Commodity-Indexed Trust (related fund, 0.75% a year)
• Invesco: DBC, Invesco DB Commodity Index Tracking Fund (related fund, 0.85% a year)
• iPath (Barclays): DJP, 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 XLE 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, XLE costs about $8 a year.
• 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 XLE 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 VDE, GSG or DBC, are less likely to.

Ask a tax professional before you rely on this. Read the IRS rules in Publication 550.

Test XLE 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, add XLE and VDE, 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 XLE. 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 XLE 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 XLE only on days both traded. Read what a backtest simulates for more on these measures.