VAW vs. XLB
Compare and contrast key facts about Vanguard Materials ETF (VAW) and Materials Select Sector SPDR ETF (XLB).
VAW and XLB 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. XLB is a passively managed fund by State Street that tracks the performance of the Materials Select Sector Index. It was launched on Dec 16, 1998. Both VAW and XLB 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 XLB.
Performance
VAW vs. XLB - Performance Comparison
Returns By Period
In the year-to-date period, VAW achieves a 8.70% return, which is significantly higher than XLB's 8.09% return. Both investments have delivered pretty close results over the past 10 years, with VAW having a 8.44% annualized return and XLB not far behind at 8.42%.
VAW
8.70%
-4.68%
1.16%
18.13%
11.21%
8.44%
XLB
8.09%
-5.98%
-0.03%
16.20%
10.88%
8.42%
Key characteristics
| VAW | XLB | |
|---|---|---|
| Sharpe Ratio | 1.29 | 1.25 |
| Sortino Ratio | 1.82 | 1.75 |
| Omega Ratio | 1.23 | 1.22 |
| Calmar Ratio | 1.97 | 1.94 |
| Martin Ratio | 6.08 | 5.84 |
| Ulcer Index | 3.00% | 2.84% |
| Daily Std Dev | 14.19% | 13.28% |
| Max Drawdown | -62.17% | -59.83% |
| Current Drawdown | -5.16% | -6.50% |
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VAW vs. XLB - Expense Ratio Comparison
VAW has a 0.10% expense ratio, which is lower than XLB's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Correlation
The correlation between VAW and XLB is 0.98, 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.
Risk-Adjusted Performance
VAW vs. XLB - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and Materials Select Sector SPDR ETF (XLB). 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. XLB - Dividend Comparison
VAW's dividend yield for the trailing twelve months is around 1.58%, less than XLB's 1.93% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAW Vanguard Materials ETF | 1.58% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% | 1.76% | 1.84% |
XLB Materials Select Sector SPDR ETF | 1.93% | 2.00% | 2.26% | 1.62% | 1.72% | 1.98% | 2.20% | 1.66% | 1.95% | 2.24% | 1.97% | 2.08% |
Drawdowns
VAW vs. XLB - Drawdown Comparison
The maximum VAW drawdown since its inception was -62.17%, roughly equal to the maximum XLB drawdown of -59.83%. Use the drawdown chart below to compare losses from any high point for VAW and XLB. For additional features, visit the drawdowns tool.
Volatility
VAW vs. XLB - Volatility Comparison
Vanguard Materials ETF (VAW) has a higher volatility of 3.93% compared to Materials Select Sector SPDR ETF (XLB) at 3.60%. This indicates that VAW's price experiences larger fluctuations and is considered to be riskier than XLB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.