VAW vs. VYM

Last updated Apr 2, 2026

Compare and contrast key facts about Vanguard Materials ETF (VAW) and Vanguard High Dividend Yield ETF (VYM).

VAW and VYM 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. VYM is a passively managed fund by Vanguard that tracks the performance of the FTSE High Dividend Yield Index. It was launched on Feb 7, 2019. Both VAW and VYM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.

Performance

VAW vs. VYM - Performance Comparison

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

VAW vs. VYM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VAW Vanguard Materials ETF	10.45%	12.30%	0.48%	13.67%	-11.80%	27.43%	19.44%	23.53%	-17.49%	23.76%
VYM Vanguard High Dividend Yield ETF	3.69%	15.42%	17.60%	6.57%	-0.43%	26.20%	1.15%	24.06%	-5.92%	16.42%

Returns By Period

In the year-to-date period, VAW achieves a 10.45% return, which is significantly higher than VYM's 3.69% return. Both investments have delivered pretty close results over the past 10 years, with VAW having a 10.70% annualized return and VYM not far ahead at 11.22%.

VAW

• 1D: 1.35%
• 1M: -5.90%
• YTD: 10.45%
• 6M: 13.21%
• 1Y: 22.50%
• 3Y*: 10.54%
• 5Y*: 7.38%
• 10Y*: 10.70%

VYM

• 1D: -0.10%
• 1M: -4.02%
• YTD: 3.69%
• 6M: 6.19%
• 1Y: 17.89%
• 3Y*: 15.17%
• 5Y*: 11.02%
• 10Y*: 11.22%

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

VAW vs. VYM - Expense Ratio Comparison

VAW has a 0.10% expense ratio, which is higher than VYM'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%.

VAW

Vanguard Materials ETF

VYM

Vanguard High Dividend Yield ETF

Return for Risk

VAW vs. VYM — Risk / Return Rank

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

VAW

VAW Risk / Return Rank: 57
VAW Sharpe Ratio Rank: 57
VAW Sortino Ratio Rank: 60
VAW Omega Ratio Rank: 52
VAW Calmar Ratio Rank: 60
VAW Martin Ratio Rank: 54

VYM

VYM Risk / Return Rank: 65
VYM Sharpe Ratio Rank: 65
VYM Sortino Ratio Rank: 65
VYM Omega Ratio Rank: 68
VYM Calmar Ratio Rank: 59
VYM Martin Ratio Rank: 66

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. VYM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Vanguard High Dividend Yield ETF (VYM). 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	VYM	Difference
Sharpe ratio Return per unit of total volatility	1.06	1.19	-0.13
Sortino ratio Return per unit of downside risk	1.59	1.70	-0.11
Omega ratio Gain probability vs. loss probability	1.21	1.26	-0.05
Calmar ratio Return relative to maximum drawdown	1.60	1.56	+0.04
Martin ratio Return relative to average drawdown	5.48	6.86	-1.38
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. VYM - Sharpe Ratio Comparison

The current VAW Sharpe Ratio is 1.06, which is comparable to the VYM Sharpe Ratio of 1.19. The chart below compares the historical Sharpe Ratios of VAW and VYM, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	VAW	VYM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.06	1.19	-0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.38	0.79	-0.41
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.51	0.69	-0.18
Sharpe Ratio (All Time) Calculated using the full available price history	0.39	0.49	-0.10

Correlation

The correlation between VAW and VYM is 0.81, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.

Dividends

VAW vs. VYM - Dividend Comparison

VAW's dividend yield for the trailing twelve months is around 1.40%, less than VYM's 2.37% yield.

	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VAW Vanguard Materials ETF	1.40%	1.55%	1.70%	1.72%	1.98%	1.44%	1.67%	1.94%	2.03%	1.63%	1.67%	2.30%
VYM Vanguard High Dividend Yield ETF	2.37%	2.44%	2.74%	3.12%	3.01%	2.76%	3.18%	3.03%	3.40%	2.80%	2.91%	3.22%

Drawdowns

VAW vs. VYM - Drawdown Comparison

The maximum VAW drawdown since its inception was -62.17%, which is greater than VYM's maximum drawdown of -56.98%. Use the drawdown chart below to compare losses from any high point for VAW and VYM.

Drawdown Indicators

	VAW	VYM	Difference
Max Drawdown Largest peak-to-trough decline	-62.17%	-56.98%	-5.19%
Max Drawdown (1Y) Largest decline over 1 year	-14.33%	-11.32%	-3.01%
Max Drawdown (5Y) Largest decline over 5 years	-25.50%	-15.84%	-9.66%
Max Drawdown (10Y) Largest decline over 10 years	-41.13%	-35.21%	-5.92%
Current Drawdown Current decline from peak	-6.10%	-4.91%	-1.19%
Average Drawdown Average peak-to-trough decline	-9.67%	-7.25%	-2.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.17%	2.57%	+1.60%

Volatility

VAW vs. VYM - Volatility Comparison

Vanguard Materials ETF (VAW) has a higher volatility of 6.71% compared to Vanguard High Dividend Yield ETF (VYM) at 3.60%. This indicates that VAW's price experiences larger fluctuations and is considered to be riskier than VYM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VAW	VYM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.71%	3.60%	+3.11%
Volatility (6M) Calculated over the trailing 6-month period	13.38%	7.96%	+5.42%
Volatility (1Y) Calculated over the trailing 1-year period	21.41%	15.14%	+6.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.57%	13.97%	+5.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.14%	16.33%	+4.81%