MXI vs. VAW

Last updated Jun 24, 2026

MXI (iShares Global Materials ETF) and VAW (Vanguard Materials ETF) are both Materials funds - MXI tracks the S&P Global Materials Index while VAW tracks the MSCI US Investable Market Materials 25/50 Index. Both are passively managed. Over the past 10 years, MXI returned 11.38%/yr vs 10.46%/yr for VAW. Their correlation of 0.89 suggests significant overlap in exposure. MXI charges 0.46%/yr vs 0.09%/yr for VAW.

Performance

MXI vs. VAW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Global Materials ETF (MXI) and Vanguard Materials ETF (VAW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with MXI having a 11.62% return and VAW slightly lower at 11.07%. Over the past 10 years, MXI has outperformed VAW with an annualized return of 11.38%, while VAW has yielded a comparatively lower 10.46% annualized return.

MXI

• 1D: -2.55%
• 1M: -2.16%
• YTD: 11.62%
• 6M: 10.06%
• 1Y: 29.81%
• 3Y*: 13.19%
• 5Y*: 6.60%
• 10Y*: 11.38%

VAW

• 1D: -1.83%
• 1M: 0.83%
• YTD: 11.07%
• 6M: 9.68%
• 1Y: 20.68%
• 3Y*: 11.22%
• 5Y*: 6.68%
• 10Y*: 10.46%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MXI vs. VAW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MXI iShares Global Materials ETF	11.62%	27.43%	-8.25%	14.37%	-9.09%	15.06%	22.31%	22.19%	-16.06%	30.33%
VAW Vanguard Materials ETF	11.07%	12.30%	0.48%	13.67%	-11.80%	27.43%	19.44%	23.53%	-17.49%	23.76%

Correlation

The correlation between MXI and VAW is 0.91, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.91
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.90
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Sep 22, 2006	0.89

The correlation between MXI and VAW has been stable across timeframes, ranging from 0.89 to 0.91 - a consistent structural relationship.

MXI vs. VAW - Sectors Allocation Comparison

Sectors	MXI	VAW
Basic Materials	95.2%	90.1%
Consumer Cyclical	4.4%	8.3%
Consumer Defensive	0.6%	0.0%
Industrials	0.5%	1.1%
Communication Services	-	-
Energy	-	0.0%
Financial Services	-	-
Healthcare	-	0.5%
Real Estate	-	-
Technology	-	0.1%
Utilities	-	-

Return for Risk

MXI vs. VAW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MXI

MXI Risk / Return Rank: 41
MXI Sharpe Ratio Rank: 43
MXI Sortino Ratio Rank: 39
MXI Omega Ratio Rank: 41
MXI Calmar Ratio Rank: 39
MXI Martin Ratio Rank: 45

VAW

VAW Risk / Return Rank: 32
VAW Sharpe Ratio Rank: 32
VAW Sortino Ratio Rank: 32
VAW Omega Ratio Rank: 30
VAW Calmar Ratio Rank: 32
VAW Martin Ratio Rank: 34

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MXI vs. VAW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Global Materials ETF (MXI) 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	MXI	VAW	Difference
Sharpe ratio: Return per unit of total volatility	1.45	1.13	+0.33
Sortino ratio: Return per unit of downside risk	1.94	1.65	+0.29
Omega ratio: Gain probability vs. loss probability	1.26	1.20	+0.06
Calmar ratio: Return relative to maximum drawdown	1.85	1.55	+0.30
Martin ratio: Return relative to average drawdown	7.13	4.90	+2.23

MXI vs. VAW - Sharpe Ratio Comparison

The current MXI Sharpe Ratio is 1.45, which is comparable to the VAW Sharpe Ratio of 1.13. The chart below compares the historical Sharpe Ratios of MXI and VAW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MXI vs. VAW - Drawdown Comparison

The maximum MXI drawdown since its inception was -68.44%, which is greater than VAW's maximum drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for MXI and VAW.

Drawdown Indicators

	MXI	VAW	Difference
Max Drawdown Largest peak-to-trough decline	-68.44%	-62.17%	-6.27%
Max Drawdown (1Y) Largest decline over 1 year	-16.18%	-13.42%	-2.76%
Max Drawdown (3Y) Largest decline over 3 years	-22.25%	-23.21%	+0.96%
Max Drawdown (5Y) Largest decline over 5 years	-28.76%	-25.50%	-3.26%
Max Drawdown (10Y) Largest decline over 10 years	-39.52%	-41.13%	+1.61%
Current Drawdown Current decline from peak	-7.43%	-5.58%	-1.85%
Average Drawdown Average peak-to-trough decline	-18.03%	-9.62%	-8.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.19%	4.23%	-0.04%

Volatility

MXI vs. VAW - Volatility Comparison

iShares Global Materials ETF (MXI) has a higher volatility of 8.08% compared to Vanguard Materials ETF (VAW) at 6.78%. This indicates that MXI's price experiences larger fluctuations and is considered to be riskier than VAW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MXI	VAW	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.08%	6.78%	+1.30%
Volatility (6M) Calculated over the trailing 6-month period	17.94%	14.86%	+3.08%
Volatility (1Y) Calculated over the trailing 1-year period	20.66%	18.50%	+2.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.86%	19.72%	+0.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.42%	21.23%	-0.81%

MXI vs. VAW - Expense Ratio Comparison

MXI has a 0.46% expense ratio, which is higher than VAW's 0.09% expense ratio.

Dividends

MXI vs. VAW - Dividend Comparison

MXI's dividend yield for the trailing twelve months is around 1.72%, more than VAW's 1.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MXI iShares Global Materials ETF	1.72%	2.22%	3.24%	2.92%	4.84%	3.51%	1.21%	3.64%	2.77%	1.76%	1.31%	3.64%
VAW Vanguard Materials ETF	1.39%	1.55%	1.70%	1.72%	1.98%	1.44%	1.67%	1.94%	2.03%	1.63%	1.67%	2.30%

Frequently Asked Questions

Can I hold both MXI and VAW in my portfolio?

With a correlation of 0.91, MXI and VAW move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, MXI or VAW?

MXI has higher volatility (8.08%) compared to VAW (6.78%). In terms of maximum drawdown, MXI dropped -68.44% vs VAW's -62.17%.

Which ETF is better, MXI or VAW?

On 10-year performance, MXI leads with 11.38% vs 10.46% for VAW. On fees, VAW is cheaper at 0.09% per year. On volatility, VAW has been the lower-risk option at 6.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MXI or VAW?

Over the 10-year period, MXI has performed better with a 11.38% return vs 10.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MXI or VAW?

VAW is cheaper with a 0.09% expense ratio, compared with 0.46% for MXI.

Which ETF pays a higher dividend yield, MXI or VAW?

MXI has the higher dividend yield at 1.72%, compared with 1.39% for VAW.

What is the main difference between MXI and VAW?

MXI tracks S&P Global Materials Index, while VAW tracks MSCI US Investable Market Materials 25/50 Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.46% for MXI and 0.09% for VAW.

Which has better risk-adjusted returns?

MXI currently has the higher Sharpe Ratio (1.45 vs 1.13), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.