VAW vs. SPY
Compare and contrast key facts about Vanguard Materials ETF (VAW) and SPDR S&P 500 ETF (SPY).
VAW and SPY 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. SPY is a passively managed fund by State Street that tracks the performance of the S&P 500 Index. It was launched on Jan 22, 1993. Both VAW and SPY are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VAW or SPY.
Performance
VAW vs. SPY - Performance Comparison
Returns By Period
In the year-to-date period, VAW achieves a 8.70% return, which is significantly lower than SPY's 24.40% return. Over the past 10 years, VAW has underperformed SPY with an annualized return of 8.44%, while SPY has yielded a comparatively higher 13.04% annualized return.
VAW
8.70%
-4.68%
1.16%
18.13%
11.21%
8.44%
SPY
24.40%
0.59%
11.33%
31.86%
15.23%
13.04%
Key characteristics
| VAW | SPY | |
|---|---|---|
| Sharpe Ratio | 1.29 | 2.64 |
| Sortino Ratio | 1.82 | 3.53 |
| Omega Ratio | 1.23 | 1.49 |
| Calmar Ratio | 1.97 | 3.81 |
| Martin Ratio | 6.08 | 17.21 |
| Ulcer Index | 3.00% | 1.86% |
| Daily Std Dev | 14.19% | 12.15% |
| Max Drawdown | -62.17% | -55.19% |
| Current Drawdown | -5.16% | -2.17% |
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VAW vs. SPY - Expense Ratio Comparison
VAW has a 0.10% expense ratio, which is higher than SPY's 0.09% 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%.
Correlation
The correlation between VAW and SPY is 0.80, 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.
Risk-Adjusted Performance
VAW vs. SPY - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and SPDR S&P 500 ETF (SPY). 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.
Dividends
VAW vs. SPY - Dividend Comparison
VAW's dividend yield for the trailing twelve months is around 1.58%, more than SPY's 1.20% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAW Vanguard Materials ETF | 1.58% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% | 1.76% | 1.84% |
SPY SPDR S&P 500 ETF | 1.20% | 1.40% | 1.65% | 1.20% | 1.52% | 1.75% | 2.04% | 1.80% | 2.03% | 2.06% | 1.87% | 1.81% |
Drawdowns
VAW vs. SPY - Drawdown Comparison
The maximum VAW drawdown since its inception was -62.17%, which is greater than SPY's maximum drawdown of -55.19%. Use the drawdown chart below to compare losses from any high point for VAW and SPY. For additional features, visit the drawdowns tool.
Volatility
VAW vs. SPY - Volatility Comparison
Vanguard Materials ETF (VAW) and SPDR S&P 500 ETF (SPY) have volatilities of 3.93% and 4.08%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.