VDE holds US energy companies of all sizes: integrated oil and gas producers, exploration and production, refining, pipelines and energy equipment and services. ExxonMobil and Chevron make up a large share of the fund. Returns are driven mainly by oil and natural gas prices, and the sector has often done well when inflation is rising. Compared with XLE, VDE includes small and mid-cap energy companies, which tend to be more volatile and more sensitive to commodity prices.
