VAW vs. FMAT

Last updated Jun 24, 2026

VAW (Vanguard Materials ETF) and FMAT (Fidelity MSCI Materials Index ETF) are both Materials funds - VAW tracks the MSCI US Investable Market Materials 25/50 Index while FMAT tracks the MSCI USA IMI Materials Index. Both are passively managed. Over the past 10 years, VAW returned 10.46%/yr vs 10.45%/yr for FMAT. With a 0.99 correlation, they move nearly in lockstep. VAW charges 0.09%/yr vs 0.08%/yr for FMAT.

Performance

VAW vs. FMAT - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with VAW having a 11.07% return and FMAT slightly higher at 11.09%. Both investments have delivered pretty close results over the past 10 years, with VAW having a 10.46% annualized return and FMAT not far behind at 10.45%.

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%

FMAT

• 1D: -1.81%
• 1M: 0.83%
• YTD: 11.09%
• 6M: 9.58%
• 1Y: 20.54%
• 3Y*: 11.22%
• 5Y*: 6.71%
• 10Y*: 10.45%

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

VAW vs. FMAT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VAW Vanguard Materials ETF	11.07%	12.30%	0.48%	13.67%	-11.80%	27.43%	19.44%	23.53%	-17.49%	23.76%
FMAT Fidelity MSCI Materials Index ETF	11.09%	12.11%	0.47%	13.71%	-11.54%	27.45%	19.57%	23.35%	-17.40%	23.51%

Correlation

The correlation between VAW and FMAT is 1.00 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	1.00
Correlation (3Y) Calculated over the trailing 3-year period	1.00
Correlation (5Y) Calculated over the trailing 5-year period	1.00
Correlation (10Y) Calculated over the trailing 10-year period	1.00
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.99

The correlation between VAW and FMAT has been stable across timeframes, ranging from 0.99 to 1.00 - a consistent structural relationship.

VAW vs. FMAT - Sectors Allocation Comparison

Sectors	VAW	FMAT
Basic Materials	90.1%	89.8%
Consumer Cyclical	8.3%	8.6%
Industrials	1.1%	0.1%
Healthcare	0.5%	0.5%
Technology	0.1%	0.1%
Consumer Defensive	0.0%	0.1%
Energy	0.0%	0.5%
Communication Services	-	-
Financial Services	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VAW vs. FMAT — Risk / Return Rank

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

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

FMAT

FMAT Risk / Return Rank: 32
FMAT Sharpe Ratio Rank: 32
FMAT Sortino Ratio Rank: 32
FMAT Omega Ratio Rank: 30
FMAT Calmar Ratio Rank: 32
FMAT 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.

VAW vs. FMAT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Fidelity MSCI Materials Index ETF (FMAT). 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.

	VAW	FMAT	Difference
Sharpe ratio: Return per unit of total volatility	1.13	1.12	+0.01
Sortino ratio: Return per unit of downside risk	1.65	1.65	+0.01
Omega ratio: Gain probability vs. loss probability	1.20	1.20	0.00
Calmar ratio: Return relative to maximum drawdown	1.55	1.53	+0.02
Martin ratio: Return relative to average drawdown	4.90	4.86	+0.05

VAW vs. FMAT - Sharpe Ratio Comparison

The current VAW Sharpe Ratio is 1.13, which is comparable to the FMAT Sharpe Ratio of 1.12. The chart below compares the historical Sharpe Ratios of VAW and FMAT, 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

VAW vs. FMAT - Drawdown Comparison

The maximum VAW drawdown since its inception was -62.17%, which is greater than FMAT's maximum drawdown of -41.11%. Use the drawdown chart below to compare losses from any high point for VAW and FMAT.

Drawdown Indicators

	VAW	FMAT	Difference
Max Drawdown Largest peak-to-trough decline	-62.17%	-41.11%	-21.06%
Max Drawdown (1Y) Largest decline over 1 year	-13.42%	-13.48%	+0.06%
Max Drawdown (3Y) Largest decline over 3 years	-23.21%	-23.17%	-0.04%
Max Drawdown (5Y) Largest decline over 5 years	-25.50%	-25.40%	-0.10%
Max Drawdown (10Y) Largest decline over 10 years	-41.13%	-41.11%	-0.02%
Current Drawdown Current decline from peak	-5.58%	-5.63%	+0.05%
Average Drawdown Average peak-to-trough decline	-9.62%	-6.87%	-2.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.23%	4.24%	-0.01%

Volatility

VAW vs. FMAT - Volatility Comparison

Vanguard Materials ETF (VAW) and Fidelity MSCI Materials Index ETF (FMAT) have volatilities of 6.78% and 6.66%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAW	FMAT	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.78%	6.66%	+0.12%
Volatility (6M) Calculated over the trailing 6-month period	14.86%	14.85%	+0.01%
Volatility (1Y) Calculated over the trailing 1-year period	18.50%	18.48%	+0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.72%	19.69%	+0.03%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.23%	21.22%	+0.01%

VAW vs. FMAT - Expense Ratio Comparison

VAW has a 0.09% expense ratio, which is higher than FMAT's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

VAW vs. FMAT - Dividend Comparison

VAW's dividend yield for the trailing twelve months is around 1.39%, less than FMAT's 1.43% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FMAT Fidelity MSCI Materials Index ETF	1.43%	1.64%	1.68%	1.71%	2.00%	1.44%	1.73%	1.89%	2.18%	1.53%	1.78%	2.16%
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 VAW and FMAT in my portfolio?

With a correlation of 1.00, VAW and FMAT 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, VAW or FMAT?

VAW has higher volatility (6.78%) compared to FMAT (6.66%). In terms of maximum drawdown, VAW dropped -62.17% vs FMAT's -41.11%.

Which ETF is better, VAW or FMAT?

On 10-year performance, VAW leads with 10.46% vs 10.45% for FMAT. On fees, FMAT is cheaper at 0.08% per year. On volatility, FMAT has been the lower-risk option at 6.66%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VAW or FMAT?

Over the 10-year period, VAW has performed better with a 10.46% return vs 10.45%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VAW or FMAT?

FMAT is cheaper with a 0.08% expense ratio, compared with 0.09% for VAW.

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

FMAT has the higher dividend yield at 1.43%, compared with 1.39% for VAW.

What is the main difference between VAW and FMAT?

VAW tracks MSCI US Investable Market Materials 25/50 Index, while FMAT tracks MSCI USA IMI Materials Index. They also come from different issuers: Vanguard and Fidelity. Their fees differ too: 0.09% for VAW and 0.08% for FMAT.

Which has better risk-adjusted returns?

VAW currently has the higher Sharpe Ratio (1.13 vs 1.12), 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.