VAW vs. VONE

Last updated Jun 23, 2026

VAW (Vanguard Materials ETF) and VONE (Vanguard Russell 1000 ETF) are both exchange-traded funds - VAW is a Materials fund tracking the MSCI US Investable Market Materials 25/50 Index, while VONE is a Large Cap Blend Equities fund tracking the Russell 1000 Index. Both are passively managed. Over the past 10 years, VAW returned 10.67%/yr vs 15.46%/yr for VONE. A 0.79 correlation means they provide meaningful diversification when combined. VAW charges 0.09%/yr vs 0.08%/yr for VONE.

Performance

VAW vs. VONE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Materials ETF (VAW) and Vanguard Russell 1000 ETF (VONE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VAW achieves a 13.13% return, which is significantly higher than VONE's 9.48% return. Over the past 10 years, VAW has underperformed VONE with an annualized return of 10.67%, while VONE has yielded a comparatively higher 15.46% annualized return.

VAW

• 1D: -0.13%
• 1M: 2.70%
• YTD: 13.13%
• 6M: 11.82%
• 1Y: 24.61%
• 3Y*: 11.91%
• 5Y*: 7.19%
• 10Y*: 10.67%

VONE

• 1D: -0.27%
• 1M: 0.31%
• YTD: 9.48%
• 6M: 9.01%
• 1Y: 25.90%
• 3Y*: 21.09%
• 5Y*: 12.72%
• 10Y*: 15.46%

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

VAW vs. VONE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VAW Vanguard Materials ETF	13.13%	12.30%	0.48%	13.67%	-11.80%	27.43%	19.44%	23.53%	-17.49%	23.76%
VONE Vanguard Russell 1000 ETF	9.48%	17.21%	24.51%	26.41%	-19.14%	26.49%	20.95%	31.12%	-4.84%	21.55%

Correlation

The correlation between VAW and VONE is 0.60, 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	0.60
Correlation (3Y) Calculated over the trailing 3-year period	0.68
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (10Y) Calculated over the trailing 10-year period	0.76
Correlation (All Time) Calculated using the full available price history since Sep 22, 2010	0.79

The correlation between VAW and VONE shifts across timeframes, from 0.60 (1 year) to 0.79 (all time), reflecting how their relationship changes across market environments.

VAW vs. VONE - Sectors Allocation Comparison

Sectors	VAW	VONE
Basic Materials	90.1%	2.0%
Consumer Cyclical	8.3%	10.3%
Industrials	1.1%	9.2%
Healthcare	0.5%	8.7%
Technology	0.1%	33.9%
Consumer Defensive	0.0%	4.8%
Energy	0.0%	3.7%
Communication Services	-	10.9%
Financial Services	-	11.9%
Real Estate	-	2.2%
Utilities	-	2.3%

Return for Risk

VAW vs. VONE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VAW

VAW Risk / Return Rank: 38
VAW Sharpe Ratio Rank: 39
VAW Sortino Ratio Rank: 38
VAW Omega Ratio Rank: 35
VAW Calmar Ratio Rank: 38
VAW Martin Ratio Rank: 38

VONE

VONE Risk / Return Rank: 65
VONE Sharpe Ratio Rank: 66
VONE Sortino Ratio Rank: 64
VONE Omega Ratio Rank: 65
VONE Calmar Ratio Rank: 61
VONE Martin Ratio Rank: 72

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. VONE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Vanguard Russell 1000 ETF (VONE). 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	VONE	Difference
Sharpe ratio: Return per unit of total volatility	1.34	2.08	-0.74
Sortino ratio: Return per unit of downside risk	1.93	2.84	-0.91
Omega ratio: Gain probability vs. loss probability	1.23	1.37	-0.14
Calmar ratio: Return relative to maximum drawdown	1.84	2.94	-1.10
Martin ratio: Return relative to average drawdown	5.85	13.14	-7.29

VAW vs. VONE - Sharpe Ratio Comparison

The current VAW Sharpe Ratio is 1.34, which is lower than the VONE Sharpe Ratio of 2.08. The chart below compares the historical Sharpe Ratios of VAW and VONE, 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. VONE - Drawdown Comparison

The maximum VAW drawdown since its inception was -62.17%, which is greater than VONE's maximum drawdown of -34.66%. Use the drawdown chart below to compare losses from any high point for VAW and VONE.

Drawdown Indicators

	VAW	VONE	Difference
Max Drawdown Largest peak-to-trough decline	-62.17%	-34.66%	-27.51%
Max Drawdown (1Y) Largest decline over 1 year	-13.42%	-8.85%	-4.57%
Max Drawdown (3Y) Largest decline over 3 years	-23.21%	-19.06%	-4.15%
Max Drawdown (5Y) Largest decline over 5 years	-25.50%	-25.12%	-0.38%
Max Drawdown (10Y) Largest decline over 10 years	-41.13%	-34.66%	-6.47%
Current Drawdown Current decline from peak	-3.82%	-1.67%	-2.15%
Average Drawdown Average peak-to-trough decline	-9.62%	-3.90%	-5.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.22%	1.98%	+2.24%

Volatility

VAW vs. VONE - Volatility Comparison

Vanguard Materials ETF (VAW) has a higher volatility of 6.50% compared to Vanguard Russell 1000 ETF (VONE) at 4.51%. This indicates that VAW's price experiences larger fluctuations and is considered to be riskier than VONE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAW	VONE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.50%	4.51%	+1.99%
Volatility (6M) Calculated over the trailing 6-month period	14.73%	9.76%	+4.97%
Volatility (1Y) Calculated over the trailing 1-year period	18.44%	12.52%	+5.92%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.70%	17.16%	+2.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.27%	18.29%	+2.98%

VAW vs. VONE - Expense Ratio Comparison

VAW has a 0.09% expense ratio, which is higher than VONE's 0.08% 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%.

Dividends

VAW vs. VONE - Dividend Comparison

VAW's dividend yield for the trailing twelve months is around 1.36%, more than VONE's 1.03% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VAW Vanguard Materials ETF	1.36%	1.55%	1.70%	1.72%	1.98%	1.44%	1.67%	1.94%	2.03%	1.63%	1.67%	2.30%
VONE Vanguard Russell 1000 ETF	1.03%	1.07%	1.20%	1.40%	1.59%	1.16%	1.45%	1.65%	1.96%	1.69%	1.89%	1.89%

Frequently Asked Questions

Can I hold both VAW and VONE in my portfolio?

VAW and VONE have a correlation of 0.60, 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 VONE?

VAW has higher volatility (6.50%) compared to VONE (4.51%). In terms of maximum drawdown, VAW dropped -62.17% vs VONE's -34.66%.

Which ETF is better, VAW or VONE?

On 10-year performance, VONE leads with 15.46% vs 10.67% for VAW. On fees, VONE is cheaper at 0.08% per year. On volatility, VONE has been the lower-risk option at 4.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VAW or VONE?

Over the 10-year period, VONE has performed better with a 15.46% return vs 10.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VAW or VONE?

VONE is cheaper with a 0.08% expense ratio, compared with 0.09% for VAW.

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

VAW has the higher dividend yield at 1.36%, compared with 1.03% for VONE.

What is the main difference between VAW and VONE?

VAW is categorized as Materials, while VONE is Large Cap Blend Equities. VAW tracks MSCI US Investable Market Materials 25/50 Index, while VONE tracks Russell 1000 Index. Their fees differ too: 0.09% for VAW and 0.08% for VONE.

Which has better risk-adjusted returns?

VONE currently has the higher Sharpe Ratio (2.08 vs 1.34), 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.