VGIT vs. VAW
VGIT (Vanguard Intermediate-Term Treasury ETF) and VAW (Vanguard Materials ETF) are both exchange-traded funds - VGIT is a Government Bonds fund tracking the Bloomberg U.S. Treasury 3-10 Year Index, while VAW is a Materials fund tracking the MSCI US Investable Market Materials 25/50 Index. Both are passively managed. Over the past 10 years, VGIT returned 1.20%/yr vs 10.56%/yr for VAW. At a correlation of -0.19, they often move in opposite directions. VGIT charges 0.03%/yr vs 0.10%/yr for VAW.
Performance
VGIT vs. VAW - Performance Comparison
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Returns By Period
In the year-to-date period, VGIT achieves a -0.29% return, which is significantly lower than VAW's 13.71% return. Over the past 10 years, VGIT has underperformed VAW with an annualized return of 1.20%, while VAW has yielded a comparatively higher 10.56% annualized return.
VGIT
- 1D
- -0.12%
- 1M
- 0.16%
- YTD
- -0.29%
- 6M
- 0.04%
- 1Y
- 3.43%
- 3Y*
- 3.69%
- 5Y*
- 0.01%
- 10Y*
- 1.20%
VAW
- 1D
- 1.79%
- 1M
- 0.56%
- YTD
- 13.71%
- 6M
- 14.42%
- 1Y
- 23.97%
- 3Y*
- 11.43%
- 5Y*
- 6.23%
- 10Y*
- 10.56%
VGIT vs. VAW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
VGIT Vanguard Intermediate-Term Treasury ETF | -0.29% | 7.34% | 1.39% | 4.28% | -10.53% | -2.64% | 7.71% | 6.19% | 1.35% | 1.70% |
VAW Vanguard Materials ETF | 13.71% | 12.30% | 0.48% | 13.67% | -11.80% | 27.43% | 19.44% | 23.53% | -17.49% | 23.76% |
Correlation
The correlation between VGIT and VAW is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.31 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.20 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.10 |
Correlation (10Y) Calculated over the trailing 10-year period | -0.08 |
Correlation (All Time) Calculated using the full available price history since Nov 23, 2009 | -0.19 |
The correlation between VGIT and VAW shifts across timeframes, from -0.19 (all time) to 0.31 (1 year), reflecting how their relationship changes across market environments.
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Return for Risk
VGIT vs. VAW — Risk / Return Rank
VGIT
VAW
VGIT vs. VAW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Intermediate-Term Treasury ETF (VGIT) 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.
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.
| VGIT | VAW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.25 | ||
| Sortino ratioReturn per unit of downside risk | -0.29 | ||
| Omega ratioGain probability vs. loss probability | 1.17 | 1.21 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | 1.13 | 1.66 | -0.53 |
| Martin ratioReturn relative to average drawdown | 3.18 | 5.30 | -2.13 |
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Drawdowns
VGIT vs. VAW - Drawdown Comparison
The maximum VGIT drawdown since its inception was -16.05%, smaller than the maximum VAW drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for VGIT and VAW.
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Drawdown Indicators
| VGIT | VAW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -16.05% | -62.17% | +46.12% |
Max Drawdown (1Y)Largest decline over 1 year | -2.83% | -13.42% | +10.59% |
Max Drawdown (3Y)Largest decline over 3 years | -4.34% | -23.21% | +18.87% |
Max Drawdown (5Y)Largest decline over 5 years | -15.02% | -25.50% | +10.48% |
Max Drawdown (10Y)Largest decline over 10 years | -16.05% | -41.13% | +25.08% |
Current DrawdownCurrent decline from peak | -2.22% | -3.33% | +1.11% |
Average DrawdownAverage peak-to-trough decline | -3.52% | -9.63% | +6.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 1.01% | 4.20% | -3.19% |
Volatility
VGIT vs. VAW - Volatility Comparison
The current volatility for Vanguard Intermediate-Term Treasury ETF (VGIT) is 1.15%, while Vanguard Materials ETF (VAW) has a volatility of 7.64%. This indicates that VGIT 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
| VGIT | VAW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 1.15% | 7.64% | -6.49% |
Volatility (6M)Calculated over the trailing 6-month period | 2.40% | 14.81% | -12.41% |
Volatility (1Y)Calculated over the trailing 1-year period | 3.34% | 18.45% | -15.11% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 5.38% | 19.76% | -14.38% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 4.50% | 21.26% | -16.76% |
VGIT vs. VAW - Expense Ratio Comparison
VGIT has a 0.03% expense ratio, which is lower than VAW's 0.10% 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%.
Dividends
VGIT vs. VAW - Dividend Comparison
VGIT's dividend yield for the trailing twelve months is around 3.86%, more than VAW's 1.36% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VAW Vanguard Materials ETF | 1.36% | 1.55% | 1.70% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% |
VGIT Vanguard Intermediate-Term Treasury ETF | 3.86% | 3.79% | 3.67% | 2.73% | 1.74% | 1.69% | 2.23% | 2.24% | 2.05% | 1.67% | 1.69% | 1.69% |
Frequently Asked Questions
VGIT and VAW have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
VAW has higher volatility (7.64%) compared to VGIT (1.15%). In terms of maximum drawdown, VGIT dropped -16.05% vs VAW's -62.17%.
On 10-year performance, VAW leads with 10.56% vs 1.20% for VGIT. On fees, VGIT is cheaper at 0.03% per year. On volatility, VGIT has been the lower-risk option at 1.15%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, VAW has performed better with a 10.56% return vs 1.20%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VGIT is cheaper with a 0.03% expense ratio, compared with 0.10% for VAW.
VGIT has the higher dividend yield at 3.86%, compared with 1.36% for VAW.
VGIT is categorized as Government Bonds, while VAW is Materials. VGIT tracks Bloomberg U.S. Treasury 3-10 Year Index, while VAW tracks MSCI US Investable Market Materials 25/50 Index. Their fees differ too: 0.03% for VGIT and 0.10% for VAW.
VAW currently has the higher Sharpe Ratio (1.21 vs 0.96), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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