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VAW vs. XLBI
Performance
Return for Risk
Drawdowns
Volatility
Dividends

VAW vs. XLBI

Last updated Jul 17, 2026
Documentation

VAW (Vanguard Materials ETF) and XLBI (State Street Materials Select Sector SPDR Premium Income ETF) are both exchange-traded funds - VAW is a Materials fund tracking the MSCI US Investable Market Materials 25/50 Index, while XLBI is a Derivative Income fund actively managed by State Street. VAW is passively managed, while XLBI is actively managed. With a 0.95 correlation, they move nearly in lockstep. VAW charges 0.09%/yr vs 0.35%/yr for XLBI.

Performance

VAW vs. XLBI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Materials ETF (VAW) and State Street Materials Select Sector SPDR Premium Income ETF (XLBI). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, VAW achieves a 9.58% return, which is significantly higher than XLBI's 7.51% return.

VAW

1D
0.25%
1M
-4.75%
6M
0.74%
YTD
9.58%
1Y
15.77%
3Y*
8.86%
5Y*
6.83%
10Y*
9.51%

XLBI

1D
0.44%
1M
-2.14%
6M
4.80%
YTD
7.51%
1Y
—
3Y*
—
5Y*
—
10Y*
—
*Multi-year figures are annualized to reflect compound growth (CAGR)

VAW vs. XLBI - Yearly Performance Comparison

2026 (YTD)2025
VAW
Vanguard Materials ETF		9.58%4.05%
XLBI
State Street Materials Select Sector SPDR Premium Income ETF		7.51%2.25%

Correlation

The correlation between VAW and XLBI is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

Correlation
Correlation (All Time)
Calculated using the full available price history since Jul 30, 2025

0.95

VAW vs. XLBI - Sectors Allocation Comparison

Sectors
VAW
XLBI

Basic Materials

90.1%

-

Consumer Cyclical

8.3%

-

Industrials

1.1%

-

Healthcare

0.5%

-

Technology

0.1%

-

Consumer Defensive

0.0%

-

Energy

0.0%

-

Communication Services

-

-

Financial Services

-

98.9%

Real Estate

-

-

Utilities

-

-

Basic Materials

VAW
90.1%
XLBI

-

Consumer Cyclical

VAW
8.3%
XLBI

-

Industrials

VAW
1.1%
XLBI

-

Healthcare

VAW
0.5%
XLBI

-

Technology

VAW
0.1%
XLBI

-

Consumer Defensive

VAW
0.0%
XLBI

-

Energy

VAW
0.0%
XLBI

-

Communication Services

VAW

-

XLBI

-

Financial Services

VAW

-

XLBI
98.9%

Real Estate

VAW

-

XLBI

-

Utilities

VAW

-

XLBI

-

Compare stocks, funds, or ETFs

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Vanguard Materials ETF

State Street Materials Select Sector SPDR Premium Income ETF

Often compared with VAW:
VAW vs. XLBVAW vs. XMEVAW vs. PAVEVAW vs. FMATVAW vs. DBCVAW vs. VDEVAW vs. IYM
Often compared with XLBI:
XLBI vs. DVXBXLBI vs. SPYXLBI vs. XLBXLBI vs. BUYWXLBI vs. GLDXLBI vs. SPINXLBI vs. SLX

Return for Risk

VAW vs. XLBI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
VAW
VAW Risk / Return Rank: 2828
Overall Rank
VAW Sharpe Ratio Rank: 2828
Sharpe Ratio Rank
VAW Sortino Ratio Rank: 2828
Sortino Ratio Rank
VAW Omega Ratio Rank: 2626
Omega Ratio Rank
VAW Calmar Ratio Rank: 2929
Calmar Ratio Rank
VAW Martin Ratio Rank: 3131
Martin Ratio Rank
XLBI

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

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. XLBI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and State Street Materials Select Sector SPDR Premium Income ETF (XLBI). 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.

VAWXLBIDifference
Sharpe ratioReturn per unit of total volatility
0.86

—

—

Sortino ratioReturn per unit of downside risk
1.30

—

—

Omega ratioGain probability vs. loss probability

1.15

—

—

Calmar ratioReturn relative to maximum drawdown

1.18

—

—

Martin ratioReturn relative to average drawdown

3.53

—

—

VAW vs. XLBI - Sharpe Ratio Comparison

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Drawdowns

VAW vs. XLBI - Drawdown Comparison

The maximum VAW drawdown since its inception was -62.17%, which is greater than XLBI's maximum drawdown of -10.62%. Use the drawdown chart below to compare losses from any high point for VAW and XLBI.

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Drawdown Indicators

VAWXLBIDifference

Max Drawdown

Largest peak-to-trough decline

-62.17%

-10.62%

-51.55%

Max Drawdown (1Y)

Largest decline over 1 year

-13.42%

—

—

Max Drawdown (3Y)

Largest decline over 3 years

-23.21%

—

—

Max Drawdown (5Y)

Largest decline over 5 years

-25.50%

—

—

Max Drawdown (10Y)

Largest decline over 10 years

-41.13%

—

—

Current Drawdown

Current decline from peak

-6.84%

-2.14%

-4.70%

Average Drawdown

Average peak-to-trough decline

-9.61%

-2.11%

-7.50%

Ulcer Index

Depth and duration of drawdowns from previous peaks

4.48%

—

—

Volatility

VAW vs. XLBI - Volatility Comparison

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Volatility by Period

VAWXLBIDifference

Volatility (1M)

Calculated over the trailing 1-month period

4.97%

—

—

Volatility (6M)

Calculated over the trailing 6-month period

14.78%

—

—

Volatility (1Y)

Calculated over the trailing 1-year period

18.52%

13.86%

+4.66%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

19.73%

13.86%

+5.87%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

21.18%

13.86%

+7.32%

VAW vs. XLBI - Expense Ratio Comparison

VAW has a 0.09% expense ratio, which is lower than XLBI's 0.35% expense ratio.

Dividends

VAW vs. XLBI - Dividend Comparison

VAW's dividend yield for the trailing twelve months is around 1.41%, less than XLBI's 14.88% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
XLBI
State Street Materials Select Sector SPDR Premium Income ETF		14.88%7.71%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%

Frequently Asked Questions

With a correlation of 0.95, VAW and XLBI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

On fees, VAW is cheaper at 0.09% per year. The better choice depends on whether you care most about return, fees, risk, or income.

VAW is cheaper with a 0.09% expense ratio, compared with 0.35% for XLBI.

XLBI has the higher dividend yield at 14.88%, compared with 1.41% for VAW.

VAW is categorized as Materials, while XLBI is Derivative Income. They also come from different issuers: Vanguard and State Street. Their fees differ too: 0.09% for VAW and 0.35% for XLBI.

Portfolio Optimizer

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