VAW vs. MSFT

Last updated Jun 9, 2026

VAW (Vanguard Materials ETF) is Materials fund tracking the MSCI US Investable Market Materials 25/50 Index, while MSFT (Microsoft Corporation) is a stock. Over the past 10 years, VAW returned 9.87%/yr vs 24.64%/yr for MSFT. At a 0.47 correlation, their price movements are largely independent.

Performance

VAW vs. MSFT - Performance Comparison

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

Returns By Period

In the year-to-date period, VAW achieves a 9.07% return, which is significantly higher than MSFT's -14.48% return. Over the past 10 years, VAW has underperformed MSFT with an annualized return of 9.87%, while MSFT has yielded a comparatively higher 24.64% 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%

MSFT

• 1D: -1.18%
• 1M: -0.60%
• YTD: -14.48%
• 6M: -15.77%
• 1Y: -11.77%
• 3Y*: 8.85%
• 5Y*: 11.09%
• 10Y*: 24.64%

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

VAW vs. MSFT - 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%
MSFT Microsoft Corporation	-14.48%	15.58%	12.93%	58.19%	-28.02%	52.48%	42.53%	57.56%	20.80%	40.73%

Correlation

The correlation between VAW and MSFT is 0.08, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.08
Correlation (3Y) Calculated over the trailing 3-year period	0.24
Correlation (5Y) Calculated over the trailing 5-year period	0.38
Correlation (10Y) Calculated over the trailing 10-year period	0.42
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.47

Over the past year, the correlation between VAW and MSFT has dropped to 0.08 - well below their long-term average of 0.47, suggesting their price drivers have been diverging.

Return for Risk

VAW vs. MSFT — Risk / Return Rank

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

VAW

VAW Risk / Return Rank: 30
VAW Sharpe Ratio Rank: 30
VAW Sortino Ratio Rank: 30
VAW Omega Ratio Rank: 28
VAW Calmar Ratio Rank: 30
VAW Martin Ratio Rank: 32

MSFT

MSFT Risk / Return Rank: 24
MSFT Sharpe Ratio Rank: 21
MSFT Sortino Ratio Rank: 21
MSFT Omega Ratio Rank: 20
MSFT Calmar Ratio Rank: 31
MSFT Martin Ratio Rank: 28

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. MSFT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Microsoft Corporation (MSFT). 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	MSFT	Difference
Sharpe ratio: Return per unit of total volatility	1.01	-0.47	+1.47
Sortino ratio: Return per unit of downside risk	1.49	-0.49	+1.97
Omega ratio: Gain probability vs. loss probability	1.18	0.94	+0.24
Calmar ratio: Return relative to maximum drawdown	1.34	-0.35	+1.69
Martin ratio: Return relative to average drawdown	4.32	-0.73	+5.06
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VAW vs. MSFT - Sharpe Ratio Comparison

The current VAW Sharpe Ratio is 1.01, which is higher than the MSFT Sharpe Ratio of -0.47. The chart below compares the historical Sharpe Ratios of VAW and MSFT, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VAW	MSFT	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.01	-0.47	+1.47
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.42	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.91	-0.45
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.74	-0.36

Drawdowns

VAW vs. MSFT - Drawdown Comparison

The maximum VAW drawdown since its inception was -62.17%, smaller than the maximum MSFT drawdown of -69.38%. Use the drawdown chart below to compare losses from any high point for VAW and MSFT.

Drawdown Indicators

	VAW	MSFT	Difference
Max Drawdown Largest peak-to-trough decline	-62.17%	-69.38%	+7.21%
Max Drawdown (1Y) Largest decline over 1 year	-13.42%	-33.91%	+20.49%
Max Drawdown (3Y) Largest decline over 3 years	-23.21%	-33.91%	+10.70%
Max Drawdown (5Y) Largest decline over 5 years	-25.50%	-37.15%	+11.65%
Max Drawdown (10Y) Largest decline over 10 years	-41.13%	-37.15%	-3.98%
Current Drawdown Current decline from peak	-7.27%	-23.56%	+16.29%
Average Drawdown Average peak-to-trough decline	-9.63%	-21.78%	+12.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.14%	16.13%	-11.99%

Volatility

VAW vs. MSFT - Volatility Comparison

The current volatility for Vanguard Materials ETF (VAW) is 5.94%, while Microsoft Corporation (MSFT) has a volatility of 10.25%. This indicates that VAW experiences smaller price fluctuations and is considered to be less risky than MSFT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAW	MSFT	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.94%	10.25%	-4.31%
Volatility (6M) Calculated over the trailing 6-month period	14.18%	22.36%	-8.18%
Volatility (1Y) Calculated over the trailing 1-year period	17.88%	25.31%	-7.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.65%	26.64%	-6.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.22%	27.06%	-5.84%

Dividends

VAW vs. MSFT - Dividend Comparison

VAW's dividend yield for the trailing twelve months is around 1.41%, more than MSFT's 0.86% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MSFT Microsoft Corporation	0.86%	0.70%	0.73%	0.74%	1.06%	0.68%	0.94%	1.20%	1.69%	1.86%	2.37%	2.33%
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

Can I hold both VAW and MSFT in my portfolio?

VAW and MSFT have a correlation of 0.08, 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 MSFT?

MSFT has higher volatility (10.25%) compared to VAW (5.94%). In terms of maximum drawdown, VAW dropped -62.17% vs MSFT's -69.38%.

Which has better risk-adjusted returns?

VAW currently has the higher Sharpe Ratio (1.01 vs -0.47), 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.