VAW vs. DBC
Compare and contrast key facts about Vanguard Materials ETF (VAW) and Invesco DB Commodity Index Tracking Fund (DBC).
VAW and DBC are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. 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. 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. Both VAW and DBC 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: VAW or DBC.
Key characteristics
| VAW | DBC | |
|---|---|---|
| YTD Return | 2.98% | 7.26% |
| 1Y Return | 15.52% | 6.40% |
| 3Y Return (Ann) | 4.09% | 12.02% |
| 5Y Return (Ann) | 11.12% | 9.62% |
| 10Y Return (Ann) | 8.47% | -0.31% |
| Sharpe Ratio | 0.92 | 0.34 |
| Daily Std Dev | 15.28% | 14.23% |
| Max Drawdown | -62.17% | -76.36% |
| Current Drawdown | -4.73% | -43.83% |
Correlation
The correlation between VAW and DBC 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
VAW vs. DBC - Performance Comparison
In the year-to-date period, VAW achieves a 2.98% return, which is significantly lower than DBC's 7.26% return. Over the past 10 years, VAW has outperformed DBC with an annualized return of 8.47%, while DBC has yielded a comparatively lower -0.31% 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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VAW vs. DBC - Expense Ratio Comparison
VAW has a 0.10% expense ratio, which is lower than DBC's 0.85% expense ratio.
Risk-Adjusted Performance
VAW vs. DBC - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Invesco DB Commodity Index Tracking Fund (DBC). 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
VAW vs. DBC - Dividend Comparison
VAW's dividend yield for the trailing twelve months is around 1.67%, less than DBC's 4.61% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% |
DBC Invesco DB Commodity Index Tracking Fund | 4.61% | 4.94% | 0.59% | 0.00% | 0.00% | 1.59% | 1.30% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Drawdowns
VAW vs. DBC - Drawdown Comparison
The maximum VAW drawdown since its inception was -62.17%, smaller than the maximum DBC drawdown of -76.36%. Use the drawdown chart below to compare losses from any high point for VAW and DBC. For additional features, visit the drawdowns tool.
Volatility
VAW vs. DBC - Volatility Comparison
Vanguard Materials ETF (VAW) has a higher volatility of 3.66% compared to Invesco DB Commodity Index Tracking Fund (DBC) at 2.77%. This indicates that VAW's price experiences larger fluctuations and is considered to be riskier than DBC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.