VDE vs. VAW
Compare and contrast key facts about Vanguard Energy ETF (VDE) and Vanguard Materials ETF (VAW).
VDE and VAW are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VDE is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Energy 25/50 Index. It was launched on Sep 23, 2004. 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. Both VDE and VAW 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
VDE vs. VAW - Performance Comparison
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VDE vs. VAW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VDE Vanguard Energy ETF | 33.23% | 7.11% | 6.75% | 0.03% | 62.89% | 56.31% | -33.02% | 9.28% | -19.95% | -2.50% |
VAW Vanguard Materials ETF | 10.45% | 12.30% | 0.48% | 13.67% | -11.80% | 27.43% | 19.44% | 23.53% | -17.49% | 23.76% |
Returns By Period
In the year-to-date period, VDE achieves a 33.23% return, which is significantly higher than VAW's 10.45% return. Both investments have delivered pretty close results over the past 10 years, with VDE having a 10.83% annualized return and VAW not far behind at 10.70%.
VDE
- 1D
- -3.61%
- 1M
- 4.27%
- YTD
- 33.23%
- 6M
- 34.21%
- 1Y
- 31.84%
- 3Y*
- 17.03%
- 5Y*
- 23.32%
- 10Y*
- 10.83%
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%
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VDE vs. VAW - Expense Ratio Comparison
Both VDE and VAW have an expense ratio of 0.10%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Return for Risk
VDE vs. VAW — Risk / Return Rank
VDE
VAW
VDE vs. VAW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Energy ETF (VDE) and Vanguard Materials ETF (VAW). 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.
| VDE | VAW | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | 1.27 | 1.06 | +0.21 |
Sortino ratioReturn per unit of downside risk | 1.67 | 1.59 | +0.08 |
Omega ratioGain probability vs. loss probability | 1.25 | 1.21 | +0.04 |
Calmar ratioReturn relative to maximum drawdown | 1.72 | 1.60 | +0.12 |
Martin ratioReturn relative to average drawdown | 4.92 | 5.48 | -0.56 |
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
| VDE | VAW | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.27 | 1.06 | +0.21 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.88 | 0.38 | +0.50 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.36 | 0.51 | -0.14 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.28 | 0.39 | -0.11 |
Correlation
The correlation between VDE and VAW is 0.68, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.
Dividends
VDE vs. VAW - Dividend Comparison
VDE's dividend yield for the trailing twelve months is around 2.36%, more than VAW's 1.40% yield.
| TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VDE Vanguard Energy ETF | 2.36% | 3.11% | 3.23% | 3.34% | 3.65% | 4.13% | 4.76% | 3.42% | 3.35% | 2.90% | 2.31% | 3.17% |
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% |
Drawdowns
VDE vs. VAW - Drawdown Comparison
The maximum VDE drawdown since its inception was -74.20%, which is greater than VAW's maximum drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for VDE and VAW.
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Drawdown Indicators
| VDE | VAW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -74.20% | -62.17% | -12.03% |
Max Drawdown (1Y)Largest decline over 1 year | -18.91% | -14.33% | -4.58% |
Max Drawdown (5Y)Largest decline over 5 years | -26.58% | -25.50% | -1.08% |
Max Drawdown (10Y)Largest decline over 10 years | -69.29% | -41.13% | -28.16% |
Current DrawdownCurrent decline from peak | -5.74% | -6.10% | +0.36% |
Average DrawdownAverage peak-to-trough decline | -20.06% | -9.67% | -10.39% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 6.61% | 4.17% | +2.44% |
Volatility
VDE vs. VAW - Volatility Comparison
The current volatility for Vanguard Energy ETF (VDE) is 6.29%, while Vanguard Materials ETF (VAW) has a volatility of 6.71%. This indicates that VDE experiences smaller price fluctuations and is considered to be less risky than VAW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| VDE | VAW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.29% | 6.71% | -0.42% |
Volatility (6M)Calculated over the trailing 6-month period | 14.31% | 13.38% | +0.93% |
Volatility (1Y)Calculated over the trailing 1-year period | 25.19% | 21.41% | +3.78% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.53% | 19.57% | +6.96% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 29.88% | 21.14% | +8.74% |