VAW vs. FXZ
Compare and contrast key facts about Vanguard Materials ETF (VAW) and First Trust Materials AlphaDEX Fund (FXZ).
VAW and FXZ 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. FXZ is a passively managed fund by First Trust that tracks the performance of the StrataQuant Materials Index. It was launched on May 8, 2007. Both VAW and FXZ are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Performance
VAW vs. FXZ - Performance Comparison
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VAW vs. FXZ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VAW Vanguard Materials ETF | 8.97% | 12.30% | 0.48% | 13.67% | -11.80% | 27.43% | 19.44% | 23.53% | -17.49% | 23.76% |
FXZ First Trust Materials AlphaDEX Fund | 17.95% | 16.25% | -16.31% | 16.27% | -0.92% | 30.84% | 22.52% | 21.52% | -22.62% | 23.72% |
Returns By Period
In the year-to-date period, VAW achieves a 8.97% return, which is significantly lower than FXZ's 17.95% return. Over the past 10 years, VAW has underperformed FXZ with an annualized return of 10.55%, while FXZ has yielded a comparatively higher 11.09% annualized return.
VAW
- 1D
- 2.34%
- 1M
- -7.36%
- YTD
- 8.97%
- 6M
- 10.84%
- 1Y
- 21.22%
- 3Y*
- 10.04%
- 5Y*
- 7.09%
- 10Y*
- 10.55%
FXZ
- 1D
- 3.07%
- 1M
- -3.11%
- YTD
- 17.95%
- 6M
- 24.85%
- 1Y
- 39.96%
- 3Y*
- 7.22%
- 5Y*
- 8.21%
- 10Y*
- 11.09%
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VAW vs. FXZ - Expense Ratio Comparison
VAW has a 0.10% expense ratio, which is lower than FXZ's 0.67% expense ratio.
Return for Risk
VAW vs. FXZ — Risk / Return Rank
VAW
FXZ
VAW vs. FXZ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and First Trust Materials AlphaDEX Fund (FXZ). 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.
| VAW | FXZ | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.00 | 1.52 | -0.52 |
Sortino ratioReturn per unit of downside risk | 1.51 | 2.12 | -0.61 |
Omega ratioGain probability vs. loss probability | 1.20 | 1.29 | -0.09 |
Calmar ratioReturn relative to maximum drawdown | 1.56 | 2.45 | -0.89 |
Martin ratioReturn relative to average drawdown | 5.38 | 9.45 | -4.07 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VAW | FXZ | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.00 | 1.52 | -0.52 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.36 | 0.34 | +0.02 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.50 | 0.45 | +0.05 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 0.33 | +0.06 |
Correlation
The correlation between VAW and FXZ is 0.91, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Dividends
VAW vs. FXZ - Dividend Comparison
VAW's dividend yield for the trailing twelve months is around 1.41%, less than FXZ's 1.52% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAW Vanguard Materials ETF | 1.41% | 1.55% | 1.70% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% |
FXZ First Trust Materials AlphaDEX Fund | 1.52% | 1.74% | 1.81% | 1.97% | 1.56% | 1.11% | 1.51% | 1.58% | 1.38% | 1.01% | 1.19% | 1.26% |
Drawdowns
VAW vs. FXZ - Drawdown Comparison
The maximum VAW drawdown since its inception was -62.17%, smaller than the maximum FXZ drawdown of -65.46%. Use the drawdown chart below to compare losses from any high point for VAW and FXZ.
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Drawdown Indicators
| VAW | FXZ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.17% | -65.46% | +3.29% |
Max Drawdown (1Y)Largest decline over 1 year | -14.33% | -16.38% | +2.05% |
Max Drawdown (5Y)Largest decline over 5 years | -25.50% | -33.99% | +8.49% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -49.41% | +8.28% |
Current DrawdownCurrent decline from peak | -7.36% | -4.10% | -3.26% |
Average DrawdownAverage peak-to-trough decline | -9.67% | -11.45% | +1.78% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.15% | 4.25% | -0.10% |
Volatility
VAW vs. FXZ - Volatility Comparison
The current volatility for Vanguard Materials ETF (VAW) is 7.07%, while First Trust Materials AlphaDEX Fund (FXZ) has a volatility of 8.64%. This indicates that VAW experiences smaller price fluctuations and is considered to be less risky than FXZ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VAW | FXZ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.07% | 8.64% | -1.57% |
Volatility (6M)Calculated over the trailing 6-month period | 13.34% | 17.29% | -3.95% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.39% | 26.42% | -5.03% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.56% | 24.10% | -4.54% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.14% | 24.79% | -3.65% |