VAW vs. VCR

Last updated Jun 9, 2026

VAW (Vanguard Materials ETF) and VCR (Vanguard Consumer Discretionary ETF) are both exchange-traded funds - VAW is a Materials fund tracking the MSCI US Investable Market Materials 25/50 Index, while VCR is a Consumer Discretionary Equities fund tracking the MSCI US Investable Market Consumer Discretionary 25/50 Index. Both are passively managed. Over the past 10 years, VAW returned 9.87%/yr vs 13.45%/yr for VCR. A 0.71 correlation means they provide meaningful diversification when combined. Both charge a 0.10% expense ratio.

Performance

VAW vs. VCR - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Materials ETF (VAW) and Vanguard Consumer Discretionary ETF (VCR). 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 VCR's -1.82% return. Over the past 10 years, VAW has underperformed VCR with an annualized return of 9.87%, while VCR has yielded a comparatively higher 13.45% 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%

VCR

• 1D: 0.64%
• 1M: -3.13%
• YTD: -1.82%
• 6M: -0.68%
• 1Y: 10.03%
• 3Y*: 13.71%
• 5Y*: 5.83%
• 10Y*: 13.45%

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

VAW vs. VCR - 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%
VCR Vanguard Consumer Discretionary ETF	-1.82%	5.77%	24.27%	40.38%	-35.15%	24.86%	48.36%	27.45%	-2.31%	22.82%

Correlation

The correlation between VAW and VCR is 0.59, 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	0.59
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.66
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.71

The correlation between VAW and VCR shifts across timeframes, from 0.59 (1 year) to 0.71 (all time), reflecting how their relationship changes across market environments.

Return for Risk

VAW vs. VCR — 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

VCR

VCR Risk / Return Rank: 19
VCR Sharpe Ratio Rank: 19
VCR Sortino Ratio Rank: 19
VCR Omega Ratio Rank: 18
VCR Calmar Ratio Rank: 18
VCR Martin Ratio Rank: 19

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. VCR - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Vanguard Consumer Discretionary ETF (VCR). 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	VCR	Difference
Sharpe ratio: Return per unit of total volatility	1.01	0.55	+0.46
Sortino ratio: Return per unit of downside risk	1.49	0.89	+0.60
Omega ratio: Gain probability vs. loss probability	1.18	1.10	+0.07
Calmar ratio: Return relative to maximum drawdown	1.34	0.65	+0.69
Martin ratio: Return relative to average drawdown	4.32	2.01	+2.32
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. VCR - Sharpe Ratio Comparison

The current VAW Sharpe Ratio is 1.01, which is higher than the VCR Sharpe Ratio of 0.55. The chart below compares the historical Sharpe Ratios of VAW and VCR, 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	VCR	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.01	0.55	+0.46
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.27	0.24	+0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.47	0.60	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.51	-0.12

Drawdowns

VAW vs. VCR - Drawdown Comparison

The maximum VAW drawdown since its inception was -62.17%, roughly equal to the maximum VCR drawdown of -61.54%. Use the drawdown chart below to compare losses from any high point for VAW and VCR.

Drawdown Indicators

	VAW	VCR	Difference
Max Drawdown Largest peak-to-trough decline	-62.17%	-61.54%	-0.63%
Max Drawdown (1Y) Largest decline over 1 year	-13.42%	-15.59%	+2.17%
Max Drawdown (3Y) Largest decline over 3 years	-23.21%	-27.36%	+4.15%
Max Drawdown (5Y) Largest decline over 5 years	-25.50%	-39.20%	+13.70%
Max Drawdown (10Y) Largest decline over 10 years	-41.13%	-39.20%	-1.93%
Current Drawdown Current decline from peak	-7.27%	-6.29%	-0.98%
Average Drawdown Average peak-to-trough decline	-9.63%	-9.40%	-0.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.14%	5.01%	-0.87%

Volatility

VAW vs. VCR - Volatility Comparison

Vanguard Materials ETF (VAW) has a higher volatility of 5.94% compared to Vanguard Consumer Discretionary ETF (VCR) at 5.30%. This indicates that VAW's price experiences larger fluctuations and is considered to be riskier than VCR based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAW	VCR	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.94%	5.30%	+0.64%
Volatility (6M) Calculated over the trailing 6-month period	14.18%	13.20%	+0.98%
Volatility (1Y) Calculated over the trailing 1-year period	17.88%	18.44%	-0.56%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.65%	24.00%	-4.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.22%	22.42%	-1.20%

VAW vs. VCR - Expense Ratio Comparison

Both VAW and VCR have an expense ratio of 0.10%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VAW vs. VCR - Dividend Comparison

VAW's dividend yield for the trailing twelve months is around 1.41%, more than VCR's 0.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VCR Vanguard Consumer Discretionary ETF	0.74%	0.74%	0.74%	0.84%	0.98%	0.79%	1.71%	1.17%	1.37%	1.21%	1.60%	1.32%

Frequently Asked Questions

Can I hold both VAW and VCR in my portfolio?

VAW and VCR have a correlation of 0.59, 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 VCR?

VAW has higher volatility (5.94%) compared to VCR (5.30%). In terms of maximum drawdown, VAW dropped -62.17% vs VCR's -61.54%.

Which ETF is better, VAW or VCR?

On 10-year performance, VCR leads with 13.45% vs 9.87% for VAW. Both ETFs have the same 0.10% expense ratio. On volatility, VCR has been the lower-risk option at 5.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VAW or VCR?

Over the 10-year period, VCR has performed better with a 13.45% return vs 9.87%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VAW or VCR?

VAW and VCR have the same expense ratio: 0.10% per year.

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

VAW has the higher dividend yield at 1.41%, compared with 0.74% for VCR.

What is the main difference between VAW and VCR?

VAW is categorized as Materials, while VCR is Consumer Discretionary Equities. VAW tracks MSCI US Investable Market Materials 25/50 Index, while VCR tracks MSCI US Investable Market Consumer Discretionary 25/50 Index.

Which has better risk-adjusted returns?

VAW currently has the higher Sharpe Ratio (1.01 vs 0.55), 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.