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Should You Invest in the Vanguard Materials Index Fund ETF Shares (VAW)?
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The Vanguard Materials Index Fund ETF Shares (VAW - Free Report) was launched on January 26, 2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Materials - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $3.24 billion, making it one of the larger ETFs attempting to match the performance of the Materials - Broad segment of the equity market. VAW seeks to match the performance of the MSCI US Investable Market Materials 25/50 Index before fees and expenses.
The MSCI US Investable Market Materials 25/50 Index includes stocks of U.S. companies within the materials sector.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.4%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Materials sector -- about 100% of the portfolio.
Looking at individual holdings, Linde Plc (LIN) accounts for about 14.57% of total assets, followed by Newmont Corp (NEM) and Freeport-mcmoran Inc (FCX).
The top 10 holdings account for about 51.56% of total assets under management.
Performance and Risk
The ETF has gained about 10.27% and is up roughly 14.07% so far this year and in the past one year (as of 10/23/2026), respectively. VAW has traded between $190.36 and $244.13 during this last 52-week period.
The ETF has a beta of 0.97 and standard deviation of 17.69% for the trailing three-year period, making it a medium risk choice in the space. With about 113 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Materials Index Fund ETF Shares holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VAW is an outstanding option for investors seeking exposure to the Materials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Northern Trust Mrngstr Glob Upstream Natural Resources ETF (GUNR) tracks Morningstar Global Upstream Natural Resources Index and the State Street Materials Select Sector SPDR ETF (XLB) tracks Materials Select Sector Index. Northern Trust Mrngstr Glob Upstream Natural Resources ETF has $7.00 billion in assets, State Street Materials Select Sector SPDR ETF has $7.98 billion. GUNR has an expense ratio of 0.46%, and XLB charges 0.08%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Vanguard Materials Index Fund ETF Shares (VAW)?
The Vanguard Materials Index Fund ETF Shares (VAW - Free Report) was launched on January 26, 2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Materials - Broad segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Vanguard. It has amassed assets over $3.24 billion, making it one of the larger ETFs attempting to match the performance of the Materials - Broad segment of the equity market. VAW seeks to match the performance of the MSCI US Investable Market Materials 25/50 Index before fees and expenses.
The MSCI US Investable Market Materials 25/50 Index includes stocks of U.S. companies within the materials sector.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
Annual operating expenses for this ETF are 0.09%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.4%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Materials sector -- about 100% of the portfolio.
Looking at individual holdings, Linde Plc (LIN) accounts for about 14.57% of total assets, followed by Newmont Corp (NEM) and Freeport-mcmoran Inc (FCX).The top 10 holdings account for about 51.56% of total assets under management.
Performance and Risk
The ETF has gained about 10.27% and is up roughly 14.07% so far this year and in the past one year (as of 10/23/2026), respectively. VAW has traded between $190.36 and $244.13 during this last 52-week period.
The ETF has a beta of 0.97 and standard deviation of 17.69% for the trailing three-year period, making it a medium risk choice in the space. With about 113 holdings, it effectively diversifies company-specific risk.
Alternatives
Vanguard Materials Index Fund ETF Shares holds a Zacks ETF Rank of 1 (Strong Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, VAW is an outstanding option for investors seeking exposure to the Materials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Northern Trust Mrngstr Glob Upstream Natural Resources ETF (GUNR) tracks Morningstar Global Upstream Natural Resources Index and the State Street Materials Select Sector SPDR ETF (XLB) tracks Materials Select Sector Index. Northern Trust Mrngstr Glob Upstream Natural Resources ETF has $7.00 billion in assets, State Street Materials Select Sector SPDR ETF has $7.98 billion. GUNR has an expense ratio of 0.46%, and XLB charges 0.08%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.