DBC vs. VAW
Compare and contrast key facts about Invesco DB Commodity Index Tracking Fund (DBC) and Vanguard Materials ETF (VAW).
DBC and VAW are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. DBC is a passively managed fund by Invesco that tracks the performance of the DBIQ Optimum Yield Diversified Commodity Index Excess Return. It was launched on Feb 3, 2006. VAW is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Materials 25/50 Index. It was launched on Jan 26, 2004. Both DBC and VAW are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: DBC or VAW.
Key characteristics
| DBC | VAW | |
|---|---|---|
| YTD Return | 7.58% | 3.16% |
| 1Y Return | 2.07% | 11.14% |
| 3Y Return (Ann) | 12.83% | 4.49% |
| 5Y Return (Ann) | 9.45% | 10.94% |
| 10Y Return (Ann) | -0.34% | 8.35% |
| Sharpe Ratio | 0.12 | 0.76 |
| Daily Std Dev | 14.32% | 15.50% |
| Max Drawdown | -76.36% | -62.17% |
| Current Drawdown | -43.67% | -4.56% |
Correlation
The correlation between DBC and VAW is 0.44, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Performance
DBC vs. VAW - Performance Comparison
In the year-to-date period, DBC achieves a 7.58% return, which is significantly higher than VAW's 3.16% return. Over the past 10 years, DBC has underperformed VAW with an annualized return of -0.34%, while VAW has yielded a comparatively higher 8.35% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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DBC vs. VAW - Expense Ratio Comparison
Risk-Adjusted Performance
DBC vs. VAW - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Invesco DB Commodity Index Tracking Fund (DBC) and Vanguard Materials ETF (VAW). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
DBC vs. VAW - Dividend Comparison
DBC's dividend yield for the trailing twelve months is around 4.59%, more than VAW's 1.67% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DBC Invesco DB Commodity Index Tracking Fund | 4.59% | 4.94% | 0.59% | 0.00% | 0.00% | 1.59% | 1.30% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
VAW Vanguard Materials ETF | 1.67% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% | 1.76% | 1.84% |
Drawdowns
DBC vs. VAW - Drawdown Comparison
The maximum DBC drawdown since its inception was -76.36%, which is greater than VAW's maximum drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for DBC and VAW. For additional features, visit the drawdowns tool.
Volatility
DBC vs. VAW - Volatility Comparison
The current volatility for Invesco DB Commodity Index Tracking Fund (DBC) is 2.67%, while Vanguard Materials ETF (VAW) has a volatility of 4.05%. This indicates that DBC experiences smaller price fluctuations and is considered to be less risky than VAW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.