VAW vs. IEF
VAW (Vanguard Materials ETF) and IEF (iShares 7-10 Year Treasury Bond ETF) are both exchange-traded funds - VAW is a Materials fund tracking the MSCI US Investable Market Materials 25/50 Index, while IEF is a Government Bonds fund tracking the ICE U.S. Treasury 7-10 Year Bond Index. Both are passively managed. Over the past 10 years, VAW returned 9.87%/yr vs 0.53%/yr for IEF. At a correlation of -0.22, they often move in opposite directions. VAW charges 0.10%/yr vs 0.15%/yr for IEF.
Performance
VAW vs. IEF - Performance Comparison
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Returns By Period
In the year-to-date period, VAW achieves a 9.07% return, which is significantly higher than IEF's -1.16% return. Over the past 10 years, VAW has outperformed IEF with an annualized return of 9.87%, while IEF has yielded a comparatively lower 0.53% annualized return.
VAW
- 1D
- -1.01%
- 1M
- -3.30%
- YTD
- 9.07%
- 6M
- 14.24%
- 1Y
- 17.86%
- 3Y*
- 10.82%
- 5Y*
- 5.32%
- 10Y*
- 9.87%
IEF
- 1D
- -0.11%
- 1M
- -1.19%
- YTD
- -1.16%
- 6M
- -0.96%
- 1Y
- 3.91%
- 3Y*
- 2.43%
- 5Y*
- -1.34%
- 10Y*
- 0.53%
VAW vs. IEF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VAW Vanguard Materials ETF | 9.07% | 12.30% | 0.48% | 13.67% | -11.80% | 27.43% | 19.44% | 23.53% | -17.49% | 23.76% |
IEF iShares 7-10 Year Treasury Bond ETF | -1.16% | 8.03% | -0.63% | 3.64% | -15.15% | -3.33% | 10.01% | 8.03% | 0.99% | 2.55% |
Correlation
The correlation between VAW and IEF is 0.33, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.33 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.22 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.10 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.09 |
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004 | -0.22 |
The correlation between VAW and IEF shifts across timeframes, from -0.22 (all time) to 0.33 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VAW vs. IEF — Risk / Return Rank
VAW
IEF
VAW vs. IEF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and iShares 7-10 Year Treasury Bond ETF (IEF). 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 | IEF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.17 | ||
| Sortino ratioReturn per unit of downside risk | +0.22 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.14 | +0.03 |
| Calmar ratioReturn relative to maximum drawdown | 1.34 | 0.96 | +0.37 |
| Martin ratioReturn relative to average drawdown | 4.32 | 2.79 | +1.54 |
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 | IEF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.01 | 0.84 | +0.17 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.27 | -0.17 | +0.45 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.47 | 0.08 | +0.39 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 0.50 | -0.11 |
Drawdowns
VAW vs. IEF - Drawdown Comparison
The maximum VAW drawdown since its inception was -62.17%, which is greater than IEF's maximum drawdown of -23.93%. Use the drawdown chart below to compare losses from any high point for VAW and IEF.
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Drawdown Indicators
| VAW | IEF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.17% | -23.93% | -38.24% |
Max Drawdown (1Y)Largest decline over 1 year | -13.42% | -4.07% | -9.35% |
Max Drawdown (3Y)Largest decline over 3 years | -23.21% | -7.74% | -15.47% |
Max Drawdown (5Y)Largest decline over 5 years | -25.50% | -21.40% | -4.10% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -23.93% | -17.20% |
Current DrawdownCurrent decline from peak | -7.27% | -11.80% | +4.53% |
Average DrawdownAverage peak-to-trough decline | -9.63% | -5.35% | -4.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.14% | 1.40% | +2.74% |
Volatility
VAW vs. IEF - Volatility Comparison
Vanguard Materials ETF (VAW) has a higher volatility of 5.94% compared to iShares 7-10 Year Treasury Bond ETF (IEF) at 1.51%. This indicates that VAW's price experiences larger fluctuations and is considered to be riskier than IEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VAW | IEF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.94% | 1.51% | +4.43% |
Volatility (6M)Calculated over the trailing 6-month period | 14.18% | 3.36% | +10.82% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.88% | 4.69% | +13.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.65% | 7.71% | +11.94% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.22% | 6.63% | +14.59% |
VAW vs. IEF - Expense Ratio Comparison
VAW has a 0.10% expense ratio, which is lower than IEF's 0.15% expense ratio. Despite the difference, 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. IEF - Dividend Comparison
VAW's dividend yield for the trailing twelve months is around 1.41%, less than IEF's 3.92% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
IEF iShares 7-10 Year Treasury Bond ETF | 3.92% | 3.77% | 3.62% | 2.91% | 1.96% | 0.83% | 1.08% | 2.08% | 2.24% | 1.82% | 1.81% | 1.90% |
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% |
Frequently Asked Questions
VAW and IEF have a correlation of 0.33, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VAW has higher volatility (5.94%) compared to IEF (1.51%). In terms of maximum drawdown, VAW dropped -62.17% vs IEF's -23.93%.
On 10-year performance, VAW leads with 9.87% vs 0.53% for IEF. On fees, VAW is cheaper at 0.10% per year. On volatility, IEF has been the lower-risk option at 1.51%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VAW has performed better with a 9.87% return vs 0.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VAW is cheaper with a 0.10% expense ratio, compared with 0.15% for IEF.
IEF has the higher dividend yield at 3.92%, compared with 1.41% for VAW.
VAW is categorized as Materials, while IEF is Government Bonds. VAW tracks MSCI US Investable Market Materials 25/50 Index, while IEF tracks ICE U.S. Treasury 7-10 Year Bond Index. They also come from different issuers: Vanguard and iShares. Their fees differ too: 0.10% for VAW and 0.15% for IEF.
VAW currently has the higher Sharpe Ratio (1.01 vs 0.84), 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.
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