VAW vs. VOX
VAW (Vanguard Materials ETF) and VOX (Vanguard Communication Services ETF) are both exchange-traded funds - VAW is a Materials fund tracking the MSCI US Investable Market Materials 25/50 Index, while VOX is a Communications Equities fund tracking the MSCI US Investable Market Communication Services 25/50 Index. Both are passively managed. Over the past 10 years, VAW returned 9.87%/yr vs 8.96%/yr for VOX. A 0.62 correlation means they provide meaningful diversification when combined. VAW charges 0.10%/yr vs 0.09%/yr for VOX.
Performance
VAW vs. VOX - Performance Comparison
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Returns By Period
In the year-to-date period, VAW achieves a 9.07% return, which is significantly higher than VOX's -3.11% return. Over the past 10 years, VAW has outperformed VOX with an annualized return of 9.87%, while VOX has yielded a comparatively lower 8.96% 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%
VOX
- 1D
- -0.72%
- 1M
- -5.33%
- YTD
- -3.11%
- 6M
- -2.48%
- 1Y
- 15.34%
- 3Y*
- 23.12%
- 5Y*
- 7.10%
- 10Y*
- 8.96%
VAW vs. VOX - 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% |
VOX Vanguard Communication Services ETF | -3.11% | 26.27% | 33.12% | 44.81% | -38.85% | 13.83% | 29.12% | 28.03% | -16.75% | -5.50% |
Correlation
The correlation between VAW and VOX is 0.39, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.39 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.48 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.57 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.57 |
Correlation (All Time) Calculated using the full available price history since Sep 30, 2004 | 0.62 |
Over the past year, the correlation between VAW and VOX has dropped to 0.39 - well below their long-term average of 0.62, suggesting their price drivers have been diverging.
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Return for Risk
VAW vs. VOX — Risk / Return Rank
VAW
VOX
VAW vs. VOX - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Vanguard Communication Services ETF (VOX). 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 | VOX | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.01 | ||
| Sortino ratioReturn per unit of downside risk | -0.04 | ||
| Omega ratioGain probability vs. loss probability | 1.18 | 1.18 | 0.00 |
| Calmar ratioReturn relative to maximum drawdown | 1.34 | 1.14 | +0.20 |
| Martin ratioReturn relative to average drawdown | 4.32 | 4.29 | +0.04 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| VAW | VOX | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.01 | 0.99 | +0.01 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.27 | 0.34 | -0.06 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.47 | 0.43 | +0.04 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.39 | 0.43 | -0.04 |
Drawdowns
VAW vs. VOX - Drawdown Comparison
The maximum VAW drawdown since its inception was -62.17%, which is greater than VOX's maximum drawdown of -57.18%. Use the drawdown chart below to compare losses from any high point for VAW and VOX.
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Drawdown Indicators
| VAW | VOX | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -62.17% | -57.18% | -4.99% |
Max Drawdown (1Y)Largest decline over 1 year | -13.42% | -13.56% | +0.14% |
Max Drawdown (3Y)Largest decline over 3 years | -23.21% | -21.15% | -2.06% |
Max Drawdown (5Y)Largest decline over 5 years | -25.50% | -46.76% | +21.26% |
Max Drawdown (10Y)Largest decline over 10 years | -41.13% | -46.76% | +5.63% |
Current DrawdownCurrent decline from peak | -7.27% | -6.36% | -0.91% |
Average DrawdownAverage peak-to-trough decline | -9.63% | -11.91% | +2.28% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.14% | 3.59% | +0.55% |
Volatility
VAW vs. VOX - Volatility Comparison
Vanguard Materials ETF (VAW) has a higher volatility of 5.94% compared to Vanguard Communication Services ETF (VOX) at 4.39%. This indicates that VAW's price experiences larger fluctuations and is considered to be riskier than VOX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VAW | VOX | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 5.94% | 4.39% | +1.55% |
Volatility (6M)Calculated over the trailing 6-month period | 14.18% | 11.33% | +2.85% |
Volatility (1Y)Calculated over the trailing 1-year period | 17.88% | 15.53% | +2.35% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.65% | 21.17% | -1.52% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.22% | 20.90% | +0.32% |
VAW vs. VOX - Expense Ratio Comparison
VAW has a 0.10% expense ratio, which is higher than VOX'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%.
Dividends
VAW vs. VOX - Dividend Comparison
VAW's dividend yield for the trailing twelve months is around 1.41%, more than VOX's 1.01% 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% |
VOX Vanguard Communication Services ETF | 1.01% | 0.95% | 1.05% | 1.03% | 0.88% | 0.93% | 0.73% | 0.90% | 2.77% | 3.83% | 2.67% | 3.55% |
Frequently Asked Questions
VAW and VOX have a correlation of 0.39, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VAW has higher volatility (5.94%) compared to VOX (4.39%). In terms of maximum drawdown, VAW dropped -62.17% vs VOX's -57.18%.
On 10-year performance, VAW leads with 9.87% vs 8.96% for VOX. On fees, VOX is cheaper at 0.09% per year. On volatility, VOX has been the lower-risk option at 4.39%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VAW has performed better with a 9.87% return vs 8.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VOX is cheaper with a 0.09% expense ratio, compared with 0.10% for VAW.
VAW has the higher dividend yield at 1.41%, compared with 1.01% for VOX.
VAW is categorized as Materials, while VOX is Communications Equities. VAW tracks MSCI US Investable Market Materials 25/50 Index, while VOX tracks MSCI US Investable Market Communication Services 25/50 Index. Their fees differ too: 0.10% for VAW and 0.09% for VOX.
VAW currently has the higher Sharpe Ratio (1.01 vs 0.99), 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.
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