VAW vs. VGLT
Compare and contrast key facts about Vanguard Materials ETF (VAW) and Vanguard Long-Term Treasury ETF (VGLT).
VAW and VGLT 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. VGLT is a passively managed fund by Vanguard that tracks the performance of the Barclays U.S. Long Government Float Adjusted Index. It was launched on Nov 19, 2009. Both VAW and VGLT 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 VGLT.
Key characteristics
| VAW | VGLT | |
|---|---|---|
| YTD Return | 10.41% | -0.02% |
| 1Y Return | 23.40% | 14.17% |
| 3Y Return (Ann) | 7.30% | -8.79% |
| 5Y Return (Ann) | 13.23% | -4.80% |
| 10Y Return (Ann) | 9.51% | 0.49% |
| Sharpe Ratio | 1.56 | 1.13 |
| Sortino Ratio | 2.16 | 1.66 |
| Omega Ratio | 1.27 | 1.19 |
| Calmar Ratio | 1.47 | 0.36 |
| Martin Ratio | 7.70 | 3.37 |
| Ulcer Index | 3.06% | 4.93% |
| Daily Std Dev | 15.12% | 14.72% |
| Max Drawdown | -62.17% | -46.18% |
| Current Drawdown | -2.61% | -35.77% |
Correlation
The correlation between VAW and VGLT is -0.27. This indicates that the assets' prices tend to move in opposite directions. Negative correlation can be particularly beneficial for diversification and risk management, as one asset may offset the losses of the other during market fluctuations.
Performance
VAW vs. VGLT - Performance Comparison
In the year-to-date period, VAW achieves a 10.41% return, which is significantly higher than VGLT's -0.02% return. Over the past 10 years, VAW has outperformed VGLT with an annualized return of 9.51%, while VGLT has yielded a comparatively lower 0.49% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VAW vs. VGLT - Expense Ratio Comparison
VAW has a 0.10% expense ratio, which is higher than VGLT's 0.04% 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%.
Risk-Adjusted Performance
VAW vs. VGLT - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Vanguard Long-Term Treasury ETF (VGLT). 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. VGLT - Dividend Comparison
VAW's dividend yield for the trailing twelve months is around 1.56%, less than VGLT's 3.86% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAW Vanguard Materials ETF | 1.56% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% | 1.76% | 1.84% |
VGLT Vanguard Long-Term Treasury ETF | 3.86% | 3.33% | 2.84% | 1.82% | 2.15% | 2.46% | 2.71% | 2.55% | 2.69% | 3.21% | 2.75% | 3.19% |
Drawdowns
VAW vs. VGLT - Drawdown Comparison
The maximum VAW drawdown since its inception was -62.17%, which is greater than VGLT's maximum drawdown of -46.18%. Use the drawdown chart below to compare losses from any high point for VAW and VGLT. For additional features, visit the drawdowns tool.
Volatility
VAW vs. VGLT - Volatility Comparison
Vanguard Materials ETF (VAW) has a higher volatility of 3.94% compared to Vanguard Long-Term Treasury ETF (VGLT) at 2.66%. This indicates that VAW's price experiences larger fluctuations and is considered to be riskier than VGLT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.