Which Energy ETF Is a Better Buy: Broad Vanguard Fund or Concentrated XLE?

State Street Energy Select Sector SPDR ETF (XLE) and Vanguard Energy ETF (VDE) both provide energy sector exposure with nearly identical 1-year returns of ~54%, but differ significantly in portfolio concentration. XLE focuses on 21 large-cap energy stocks with a slightly lower expense ratio (0.08% vs 0.09%), while VDE offers broader diversification with 112 holdings including mid-cap and small-cap companies. The choice depends on investor preference: XLE for concentrated exposure to major producers, or VDE for a more resilient, diversified energy bet.