VAW vs. MGV

Last updated Jun 23, 2026

VAW (Vanguard Materials ETF) and MGV (Vanguard Mega Cap Value ETF) are both exchange-traded funds - VAW is a Materials fund tracking the MSCI US Investable Market Materials 25/50 Index, while MGV is a Large Cap Value Equities fund tracking the CRSP US Mega Cap Value Index. Both are passively managed. Over the past 10 years, VAW returned 10.67%/yr vs 13.43%/yr for MGV. Their correlation of 0.81 suggests significant overlap in exposure. VAW charges 0.09%/yr vs 0.05%/yr for MGV.

Performance

VAW vs. MGV - Performance Comparison

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

Returns By Period

In the year-to-date period, VAW achieves a 13.13% return, which is significantly lower than MGV's 16.85% return. Over the past 10 years, VAW has underperformed MGV with an annualized return of 10.67%, while MGV has yielded a comparatively higher 13.43% annualized return.

VAW

• 1D: -0.13%
• 1M: 2.70%
• YTD: 13.13%
• 6M: 11.82%
• 1Y: 24.61%
• 3Y*: 11.91%
• 5Y*: 7.19%
• 10Y*: 10.67%

MGV

• 1D: 1.09%
• 1M: 4.51%
• YTD: 16.85%
• 6M: 16.55%
• 1Y: 30.47%
• 3Y*: 19.86%
• 5Y*: 13.34%
• 10Y*: 13.43%

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

VAW vs. MGV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VAW Vanguard Materials ETF	13.13%	12.30%	0.48%	13.67%	-11.80%	27.43%	19.44%	23.53%	-17.49%	23.76%
MGV Vanguard Mega Cap Value ETF	16.85%	15.45%	16.94%	9.16%	-1.22%	25.93%	2.50%	25.54%	-4.13%	16.85%

Correlation

The correlation between VAW and MGV is 0.71, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.77
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (10Y) Calculated over the trailing 10-year period	0.81
Correlation (All Time) Calculated using the full available price history since Dec 27, 2007	0.81

The correlation between VAW and MGV has been stable across timeframes, ranging from 0.71 to 0.81 - a consistent structural relationship.

VAW vs. MGV - Sectors Allocation Comparison

Sectors	VAW	MGV
Basic Materials	90.1%	2.3%
Consumer Cyclical	8.3%	3.4%
Industrials	1.1%	13.2%
Healthcare	0.5%	16.0%
Technology	0.1%	18.5%
Consumer Defensive	0.0%	11.0%
Energy	0.0%	6.0%
Communication Services	-	3.2%
Financial Services	-	22.8%
Real Estate	-	1.2%
Utilities	-	2.3%

Return for Risk

VAW vs. MGV — Risk / Return Rank

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

VAW

VAW Risk / Return Rank: 38
VAW Sharpe Ratio Rank: 39
VAW Sortino Ratio Rank: 38
VAW Omega Ratio Rank: 35
VAW Calmar Ratio Rank: 38
VAW Martin Ratio Rank: 38

MGV

MGV Risk / Return Rank: 90
MGV Sharpe Ratio Rank: 92
MGV Sortino Ratio Rank: 92
MGV Omega Ratio Rank: 89
MGV Calmar Ratio Rank: 87
MGV Martin Ratio Rank: 88

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. MGV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Vanguard Mega Cap Value ETF (MGV). 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	MGV	Difference
Sharpe ratio: Return per unit of total volatility	1.34	3.02	-1.68
Sortino ratio: Return per unit of downside risk	1.93	4.27	-2.34
Omega ratio: Gain probability vs. loss probability	1.23	1.54	-0.31
Calmar ratio: Return relative to maximum drawdown	1.84	4.77	-2.93
Martin ratio: Return relative to average drawdown	5.85	18.12	-12.26

VAW vs. MGV - Sharpe Ratio Comparison

The current VAW Sharpe Ratio is 1.34, which is lower than the MGV Sharpe Ratio of 3.02. The chart below compares the historical Sharpe Ratios of VAW and MGV, 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. MGV - Drawdown Comparison

The maximum VAW drawdown since its inception was -62.17%, which is greater than MGV's maximum drawdown of -56.07%. Use the drawdown chart below to compare losses from any high point for VAW and MGV.

Drawdown Indicators

	VAW	MGV	Difference
Max Drawdown Largest peak-to-trough decline	-62.17%	-56.07%	-6.10%
Max Drawdown (1Y) Largest decline over 1 year	-13.42%	-6.42%	-7.00%
Max Drawdown (3Y) Largest decline over 3 years	-23.21%	-13.18%	-10.03%
Max Drawdown (5Y) Largest decline over 5 years	-25.50%	-16.54%	-8.96%
Max Drawdown (10Y) Largest decline over 10 years	-41.13%	-35.41%	-5.72%
Current Drawdown Current decline from peak	-3.82%	0.00%	-3.82%
Average Drawdown Average peak-to-trough decline	-9.62%	-7.78%	-1.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.22%	1.69%	+2.53%

Volatility

VAW vs. MGV - Volatility Comparison

Vanguard Materials ETF (VAW) has a higher volatility of 6.50% compared to Vanguard Mega Cap Value ETF (MGV) at 3.32%. This indicates that VAW's price experiences larger fluctuations and is considered to be riskier than MGV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAW	MGV	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.50%	3.32%	+3.18%
Volatility (6M) Calculated over the trailing 6-month period	14.73%	7.77%	+6.96%
Volatility (1Y) Calculated over the trailing 1-year period	18.44%	10.15%	+8.29%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.70%	13.57%	+6.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.27%	16.36%	+4.91%

VAW vs. MGV - Expense Ratio Comparison

VAW has a 0.09% expense ratio, which is higher than MGV's 0.05% 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. MGV - Dividend Comparison

VAW's dividend yield for the trailing twelve months is around 1.36%, less than MGV's 1.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MGV Vanguard Mega Cap Value ETF	1.82%	2.04%	2.31%	2.48%	2.45%	2.17%	2.47%	2.69%	2.65%	2.34%	2.53%	2.59%
VAW Vanguard Materials ETF	1.36%	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 MGV in my portfolio?

VAW and MGV have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VAW or MGV?

VAW has higher volatility (6.50%) compared to MGV (3.32%). In terms of maximum drawdown, VAW dropped -62.17% vs MGV's -56.07%.

Which ETF is better, VAW or MGV?

On 10-year performance, MGV leads with 13.43% vs 10.67% for VAW. On fees, MGV is cheaper at 0.05% per year. On volatility, MGV has been the lower-risk option at 3.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VAW or MGV?

Over the 10-year period, MGV has performed better with a 13.43% return vs 10.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VAW or MGV?

MGV is cheaper with a 0.05% expense ratio, compared with 0.09% for VAW.

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

MGV has the higher dividend yield at 1.82%, compared with 1.36% for VAW.

What is the main difference between VAW and MGV?

VAW is categorized as Materials, while MGV is Large Cap Value Equities. VAW tracks MSCI US Investable Market Materials 25/50 Index, while MGV tracks CRSP US Mega Cap Value Index. Their fees differ too: 0.09% for VAW and 0.05% for MGV.

Which has better risk-adjusted returns?

MGV currently has the higher Sharpe Ratio (3.02 vs 1.34), 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.