VAW vs. VGT

Last updated Jun 24, 2026

VAW (Vanguard Materials ETF) and VGT (Vanguard Information Technology ETF) are both exchange-traded funds - VAW is a Materials fund tracking the MSCI US Investable Market Materials 25/50 Index, while VGT is a Technology Equities fund tracking the MSCI USA IMI Information Technology 25/50 Index. Both are passively managed. Over the past 10 years, VAW returned 10.46%/yr vs 25.49%/yr for VGT. A 0.66 correlation means they provide meaningful diversification when combined. Both charge a 0.09% expense ratio.

Performance

VAW vs. VGT - Performance Comparison

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

Returns By Period

In the year-to-date period, VAW achieves a 11.07% return, which is significantly lower than VGT's 23.32% return. Over the past 10 years, VAW has underperformed VGT with an annualized return of 10.46%, while VGT has yielded a comparatively higher 25.49% annualized return.

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%

VGT

• 1D: -3.68%
• 1M: 0.28%
• YTD: 23.32%
• 6M: 21.50%
• 1Y: 46.82%
• 3Y*: 30.13%
• 5Y*: 19.51%
• 10Y*: 25.49%

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

VAW vs. VGT - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VAW Vanguard Materials ETF	11.07%	12.30%	0.48%	13.67%	-11.80%	27.43%	19.44%	23.53%	-17.49%	23.76%
VGT Vanguard Information Technology ETF	23.32%	21.77%	29.30%	52.66%	-29.70%	30.45%	46.04%	48.62%	2.46%	37.08%

Correlation

The correlation between VAW and VGT is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.49
Correlation (5Y) Calculated over the trailing 5-year period	0.58
Correlation (10Y) Calculated over the trailing 10-year period	0.58
Correlation (All Time) Calculated using the full available price history since Jan 30, 2004	0.66

Over the past year, the correlation between VAW and VGT has dropped to 0.41 - well below their long-term average of 0.66, suggesting their price drivers have been diverging.

VAW vs. VGT - Sectors Allocation Comparison

Sectors	VAW	VGT
Basic Materials	90.1%	0.0%
Consumer Cyclical	8.3%	0.1%
Industrials	1.1%	0.4%
Healthcare	0.5%	0.0%
Technology	0.1%	98.5%
Consumer Defensive	0.0%	-
Energy	0.0%	0.3%
Communication Services	-	0.5%
Financial Services	-	0.5%
Real Estate	-	-
Utilities	-	-

Return for Risk

VAW vs. VGT — 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

VGT

VGT Risk / Return Rank: 58
VGT Sharpe Ratio Rank: 65
VGT Sortino Ratio Rank: 56
VGT Omega Ratio Rank: 58
VGT Calmar Ratio Rank: 60
VGT Martin Ratio Rank: 52

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. VGT - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Vanguard Information Technology ETF (VGT). 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	VGT	Difference
Sharpe ratio: Return per unit of total volatility	1.13	2.07	-0.95
Sortino ratio: Return per unit of downside risk	1.65	2.61	-0.95
Omega ratio: Gain probability vs. loss probability	1.20	1.35	-0.15
Calmar ratio: Return relative to maximum drawdown	1.55	2.87	-1.32
Martin ratio: Return relative to average drawdown	4.90	8.76	-3.86

VAW vs. VGT - Sharpe Ratio Comparison

The current VAW Sharpe Ratio is 1.13, which is lower than the VGT Sharpe Ratio of 2.07. The chart below compares the historical Sharpe Ratios of VAW and VGT, 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. VGT - Drawdown Comparison

The maximum VAW drawdown since its inception was -62.17%, which is greater than VGT's maximum drawdown of -54.63%. Use the drawdown chart below to compare losses from any high point for VAW and VGT.

Drawdown Indicators

	VAW	VGT	Difference
Max Drawdown Largest peak-to-trough decline	-62.17%	-54.63%	-7.54%
Max Drawdown (1Y) Largest decline over 1 year	-13.42%	-16.40%	+2.98%
Max Drawdown (3Y) Largest decline over 3 years	-23.21%	-27.23%	+4.02%
Max Drawdown (5Y) Largest decline over 5 years	-25.50%	-35.07%	+9.57%
Max Drawdown (10Y) Largest decline over 10 years	-41.13%	-35.07%	-6.06%
Current Drawdown Current decline from peak	-5.58%	-7.71%	+2.13%
Average Drawdown Average peak-to-trough decline	-9.62%	-7.95%	-1.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.23%	5.36%	-1.13%

Volatility

VAW vs. VGT - Volatility Comparison

The current volatility for Vanguard Materials ETF (VAW) is 6.78%, while Vanguard Information Technology ETF (VGT) has a volatility of 11.39%. This indicates that VAW experiences smaller price fluctuations and is considered to be less risky than VGT based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAW	VGT	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.78%	11.39%	-4.61%
Volatility (6M) Calculated over the trailing 6-month period	14.86%	18.58%	-3.72%
Volatility (1Y) Calculated over the trailing 1-year period	18.50%	22.72%	-4.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.72%	25.55%	-5.83%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.23%	24.77%	-3.54%

VAW vs. VGT - Expense Ratio Comparison

Both VAW and VGT have an expense ratio of 0.09%, 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. VGT - Dividend Comparison

VAW's dividend yield for the trailing twelve months is around 1.39%, more than VGT's 0.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
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%
VGT Vanguard Information Technology ETF	0.33%	0.40%	0.60%	0.65%	0.91%	0.64%	0.82%	1.11%	1.29%	0.99%	1.31%	1.28%

Frequently Asked Questions

Can I hold both VAW and VGT in my portfolio?

VAW and VGT have a correlation of 0.41, 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 VGT?

VGT has higher volatility (11.39%) compared to VAW (6.78%). In terms of maximum drawdown, VAW dropped -62.17% vs VGT's -54.63%.

Which ETF is better, VAW or VGT?

On 10-year performance, VGT leads with 25.49% vs 10.46% for VAW. Both ETFs have the same 0.09% expense ratio. 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 VGT?

Over the 10-year period, VGT has performed better with a 25.49% return vs 10.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VAW or VGT?

VAW and VGT have the same expense ratio: 0.09% per year.

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

VAW has the higher dividend yield at 1.39%, compared with 0.33% for VGT.

What is the main difference between VAW and VGT?

VAW is categorized as Materials, while VGT is Technology Equities. VAW tracks MSCI US Investable Market Materials 25/50 Index, while VGT tracks MSCI USA IMI Information Technology 25/50 Index.

Which has better risk-adjusted returns?

VGT currently has the higher Sharpe Ratio (2.07 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.