VAW vs. XME
Compare and contrast key facts about Vanguard Materials ETF (VAW) and SPDR S&P Metals & Mining ETF (XME).
VAW and XME 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. XME is a passively managed fund by State Street that tracks the performance of the S&P Metals & Mining Select Industry Index. It was launched on Jun 19, 2006. Both VAW and XME 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 XME.
Key characteristics
| VAW | XME | |
|---|---|---|
| YTD Return | 2.98% | 1.02% |
| 1Y Return | 15.52% | 25.41% |
| 3Y Return (Ann) | 4.09% | 14.22% |
| 5Y Return (Ann) | 11.12% | 17.48% |
| 10Y Return (Ann) | 8.47% | 5.55% |
| Sharpe Ratio | 0.92 | 1.05 |
| Daily Std Dev | 15.28% | 22.90% |
| Max Drawdown | -62.17% | -85.94% |
| Current Drawdown | -4.73% | -20.04% |
Correlation
The correlation between VAW and XME is 0.82, 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.
Performance
VAW vs. XME - Performance Comparison
In the year-to-date period, VAW achieves a 2.98% return, which is significantly higher than XME's 1.02% return. Over the past 10 years, VAW has outperformed XME with an annualized return of 8.47%, while XME has yielded a comparatively lower 5.55% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VAW vs. XME - Expense Ratio Comparison
VAW has a 0.10% expense ratio, which is lower than XME's 0.35% expense ratio.
Risk-Adjusted Performance
VAW vs. XME - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Materials ETF (VAW) and SPDR S&P Metals & Mining ETF (XME). 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. XME - Dividend Comparison
VAW's dividend yield for the trailing twelve months is around 1.67%, more than XME's 0.88% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAW Vanguard Materials ETF | 1.67% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% | 1.76% | 1.84% |
XME SPDR S&P Metals & Mining ETF | 0.88% | 1.00% | 1.64% | 0.70% | 0.99% | 2.43% | 2.23% | 1.15% | 1.02% | 2.61% | 2.21% | 1.32% |
Drawdowns
VAW vs. XME - Drawdown Comparison
The maximum VAW drawdown since its inception was -62.17%, smaller than the maximum XME drawdown of -85.94%. Use the drawdown chart below to compare losses from any high point for VAW and XME. For additional features, visit the drawdowns tool.
Volatility
VAW vs. XME - Volatility Comparison
The current volatility for Vanguard Materials ETF (VAW) is 3.66%, while SPDR S&P Metals & Mining ETF (XME) has a volatility of 5.82%. This indicates that VAW experiences smaller price fluctuations and is considered to be less risky than XME based on this measure. The chart below showcases a comparison of their rolling one-month volatility.