VAW vs. SETM

Last updated Jun 24, 2026

VAW (Vanguard Materials ETF) and SETM (Sprott Critical Materials ETF) are both Materials funds - VAW tracks the MSCI US Investable Market Materials 25/50 Index while SETM tracks the Nasdaq Sprott Critical Materials Index. Both are passively managed. Over the past 3 years, VAW returned 11.22%/yr vs 25.14%/yr for SETM. A 0.62 correlation means they provide meaningful diversification when combined. VAW charges 0.09%/yr vs 0.65%/yr for SETM.

Performance

VAW vs. SETM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Materials ETF (VAW) and Sprott Critical Materials ETF (SETM). 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 SETM slightly higher at 11.16%.

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%

SETM

• 1D: -4.08%
• 1M: -8.14%
• YTD: 11.16%
• 6M: 8.97%
• 1Y: 95.17%
• 3Y*: 25.14%
• 5Y*: —
• 10Y*: —

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

VAW vs. SETM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
VAW Vanguard Materials ETF	11.07%	12.30%	0.48%	2.63%
SETM Sprott Critical Materials ETF	11.16%	95.27%	-13.24%	-13.11%

Correlation

The correlation between VAW and SETM is 0.63, 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	0.63
Correlation (3Y) Calculated over the trailing 3-year period	0.61
Correlation (All Time) Calculated using the full available price history since Feb 2, 2023	0.63

The correlation between VAW and SETM has been stable across timeframes, ranging from 0.61 to 0.63 - a consistent structural relationship.

VAW vs. SETM - Sectors Allocation Comparison

Sectors	VAW	SETM
Basic Materials	90.1%	76.0%
Consumer Cyclical	8.3%	-
Industrials	1.1%	1.0%
Healthcare	0.5%	-
Technology	0.1%	0.1%
Consumer Defensive	0.0%	0.1%
Energy	0.0%	22.9%
Communication Services	-	-
Financial Services	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

VAW vs. SETM — 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

SETM

SETM Risk / Return Rank: 61
SETM Sharpe Ratio Rank: 66
SETM Sortino Ratio Rank: 51
SETM Omega Ratio Rank: 53
SETM Calmar Ratio Rank: 75
SETM Martin Ratio Rank: 62

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. SETM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Sprott Critical Materials ETF (SETM). 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	SETM	Difference
Sharpe ratio: Return per unit of total volatility	1.13	2.05	-0.92
Sortino ratio: Return per unit of downside risk	1.65	2.41	-0.76
Omega ratio: Gain probability vs. loss probability	1.20	1.32	-0.12
Calmar ratio: Return relative to maximum drawdown	1.55	3.70	-2.15
Martin ratio: Return relative to average drawdown	4.90	10.56	-5.66

VAW vs. SETM - Sharpe Ratio Comparison

The current VAW Sharpe Ratio is 1.13, which is lower than the SETM Sharpe Ratio of 2.05. The chart below compares the historical Sharpe Ratios of VAW and SETM, 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. SETM - Drawdown Comparison

The maximum VAW drawdown since its inception was -62.17%, which is greater than SETM's maximum drawdown of -42.81%. Use the drawdown chart below to compare losses from any high point for VAW and SETM.

Drawdown Indicators

	VAW	SETM	Difference
Max Drawdown Largest peak-to-trough decline	-62.17%	-42.81%	-19.36%
Max Drawdown (1Y) Largest decline over 1 year	-13.42%	-25.85%	+12.43%
Max Drawdown (3Y) Largest decline over 3 years	-23.21%	-42.81%	+19.60%
Max Drawdown (5Y) Largest decline over 5 years	-25.50%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-41.13%	—	—
Current Drawdown Current decline from peak	-5.58%	-19.00%	+13.42%
Average Drawdown Average peak-to-trough decline	-9.62%	-15.03%	+5.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.23%	9.04%	-4.81%

Volatility

VAW vs. SETM - Volatility Comparison

The current volatility for Vanguard Materials ETF (VAW) is 6.78%, while Sprott Critical Materials ETF (SETM) has a volatility of 17.16%. This indicates that VAW experiences smaller price fluctuations and is considered to be less risky than SETM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAW	SETM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.78%	17.16%	-10.38%
Volatility (6M) Calculated over the trailing 6-month period	14.86%	37.55%	-22.69%
Volatility (1Y) Calculated over the trailing 1-year period	18.50%	46.69%	-28.19%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.72%	37.23%	-17.51%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.23%	37.23%	-16.00%

VAW vs. SETM - Expense Ratio Comparison

VAW has a 0.09% expense ratio, which is lower than SETM's 0.65% expense ratio.

Dividends

VAW vs. SETM - Dividend Comparison

VAW's dividend yield for the trailing twelve months is around 1.39%, less than SETM's 1.41% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SETM Sprott Critical Materials ETF	1.41%	1.56%	2.07%	2.47%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 SETM in my portfolio?

VAW and SETM have a correlation of 0.63, 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 SETM?

SETM has higher volatility (17.16%) compared to VAW (6.78%). In terms of maximum drawdown, VAW dropped -62.17% vs SETM's -42.81%.

Which ETF is better, VAW or SETM?

On 3-year performance, SETM leads with 25.14% vs 11.22% for VAW. On fees, VAW is cheaper at 0.09% per year. On volatility, VAW has been the lower-risk option at 6.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VAW or SETM?

Over the 3-year period, SETM has performed better with a 25.14% return vs 11.22%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VAW or SETM?

VAW is cheaper with a 0.09% expense ratio, compared with 0.65% for SETM.

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

SETM has the higher dividend yield at 1.41%, compared with 1.39% for VAW.

What is the main difference between VAW and SETM?

VAW tracks MSCI US Investable Market Materials 25/50 Index, while SETM tracks Nasdaq Sprott Critical Materials Index. They also come from different issuers: Vanguard and Sprott. Their fees differ too: 0.09% for VAW and 0.65% for SETM.

Which has better risk-adjusted returns?

SETM currently has the higher Sharpe Ratio (2.05 vs 1.13), 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.