VGPMX vs. VAW

Last updated Jun 4, 2026

VGPMX (Vanguard Global Capital Cycles Fund) and VAW (Vanguard Materials ETF) are both funds - VGPMX is a Global Equities fund managed by Vanguard, while VAW is a Materials fund tracking the MSCI US Investable Market Materials 25/50 Index. Over the past 10 years, VGPMX returned 11.53%/yr vs 10.35%/yr for VAW. A 0.67 correlation means they provide meaningful diversification when combined. VGPMX charges 0.36%/yr vs 0.10%/yr for VAW.

Performance

VGPMX vs. VAW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Global Capital Cycles Fund (VGPMX) and Vanguard Materials ETF (VAW). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, VGPMX achieves a 21.14% return, which is significantly higher than VAW's 13.17% return. Over the past 10 years, VGPMX has outperformed VAW with an annualized return of 11.53%, while VAW has yielded a comparatively lower 10.35% annualized return.

VGPMX

• 1D: 1.33%
• 1M: 6.96%
• YTD: 21.14%
• 6M: 25.95%
• 1Y: 66.86%
• 3Y*: 31.54%
• 5Y*: 20.51%
• 10Y*: 11.53%

VAW

• 1D: -0.23%
• 1M: 2.57%
• YTD: 13.17%
• 6M: 16.23%
• 1Y: 22.68%
• 3Y*: 12.47%
• 5Y*: 5.80%
• 10Y*: 10.35%

*Multi-year figures are annualized to reflect compound growth (CAGR)

VGPMX vs. VAW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VGPMX Vanguard Global Capital Cycles Fund	21.14%	65.96%	5.78%	10.06%	7.34%	19.50%	17.21%	20.67%	-32.26%	13.75%
VAW Vanguard Materials ETF	13.17%	12.30%	0.48%	13.67%	-11.80%	27.43%	19.44%	23.53%	-17.49%	23.76%

Correlation

The correlation between VGPMX and VAW is 0.73, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.73
Correlation (3Y) Calculated over the trailing 3-year period	0.73
Correlation (5Y) Calculated over the trailing 5-year period	0.77
Correlation (10Y) Calculated over the trailing 10-year period	0.66
Correlation (All Time) Calculated using the full available price history since Feb 2, 2004	0.67

The correlation between VGPMX and VAW shifts across timeframes, from 0.66 (10 years) to 0.77 (5 years), reflecting how their relationship changes across market environments.

VGPMX vs. VAW - Sectors Allocation Comparison

Sectors	VGPMX	VAW
Basic Materials	38.0%	90.2%
Healthcare	11.9%	0.5%
Technology	9.5%	0.1%
Consumer Defensive	9.4%	0.0%
Communication Services	6.5%	-
Financial Services	5.7%	-
Consumer Cyclical	5.1%	8.3%
Utilities	4.7%	-
Energy	4.4%	0.5%
Industrials	2.6%	1.0%
Real Estate	2.2%	-

Return for Risk

VGPMX vs. VAW — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

VGPMX

VGPMX Risk / Return Rank: 95
VGPMX Sharpe Ratio Rank: 98
VGPMX Sortino Ratio Rank: 94
VGPMX Omega Ratio Rank: 92
VGPMX Calmar Ratio Rank: 93
VGPMX Martin Ratio Rank: 95

VAW

VAW Risk / Return Rank: 34
VAW Sharpe Ratio Rank: 35
VAW Sortino Ratio Rank: 34
VAW Omega Ratio Rank: 33
VAW Calmar Ratio Rank: 34
VAW Martin Ratio Rank: 35

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.

VGPMX vs. VAW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Global Capital Cycles Fund (VGPMX) 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.

	VGPMX	VAW	Difference
Sharpe ratio: Return per unit of total volatility	4.02	1.29	+2.73
Sortino ratio: Return per unit of downside risk	4.82	1.86	+2.95
Omega ratio: Gain probability vs. loss probability	1.69	1.22	+0.47
Calmar ratio: Return relative to maximum drawdown	5.25	1.70	+3.55
Martin ratio: Return relative to average drawdown	21.90	5.56	+16.34
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

VGPMX vs. VAW - Sharpe Ratio Comparison

The current VGPMX Sharpe Ratio is 4.02, which is higher than the VAW Sharpe Ratio of 1.29. The chart below compares the historical Sharpe Ratios of VGPMX and VAW, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	VGPMX	VAW	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	4.02	1.29	+2.73
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	1.19	0.30	+0.89
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.55	0.49	+0.06
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.39	-0.13

Drawdowns

VGPMX vs. VAW - Drawdown Comparison

The maximum VGPMX drawdown since its inception was -78.85%, which is greater than VAW's maximum drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for VGPMX and VAW.

Drawdown Indicators

	VGPMX	VAW	Difference
Max Drawdown Largest peak-to-trough decline	-78.85%	-62.17%	-16.68%
Max Drawdown (1Y) Largest decline over 1 year	-12.80%	-13.42%	+0.62%
Max Drawdown (3Y) Largest decline over 3 years	-14.63%	-23.21%	+8.58%
Max Drawdown (5Y) Largest decline over 5 years	-22.71%	-25.50%	+2.79%
Max Drawdown (10Y) Largest decline over 10 years	-54.59%	-41.13%	-13.46%
Current Drawdown Current decline from peak	0.00%	-3.79%	+3.79%
Average Drawdown Average peak-to-trough decline	-34.55%	-9.63%	-24.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.06%	4.09%	-1.03%

Volatility

VGPMX vs. VAW - Volatility Comparison

Vanguard Global Capital Cycles Fund (VGPMX) and Vanguard Materials ETF (VAW) have volatilities of 5.98% and 6.08%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	VGPMX	VAW	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.98%	6.08%	-0.10%
Volatility (6M) Calculated over the trailing 6-month period	13.83%	13.93%	-0.10%
Volatility (1Y) Calculated over the trailing 1-year period	16.76%	17.65%	-0.89%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.38%	19.62%	-2.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.87%	21.20%	-0.33%

VGPMX vs. VAW - Expense Ratio Comparison

VGPMX has a 0.36% expense ratio, which is higher than VAW's 0.10% expense ratio.

Dividends

VGPMX vs. VAW - Dividend Comparison

VGPMX's dividend yield for the trailing twelve months is around 3.22%, 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%
VGPMX Vanguard Global Capital Cycles Fund	3.22%	2.59%	2.68%	3.22%	3.27%	3.26%	2.03%	2.39%	3.02%	0.02%	1.72%	2.32%

Frequently Asked Questions

Can I hold both VGPMX and VAW in my portfolio?

VGPMX and VAW have a correlation of 0.73, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VGPMX or VAW?

VAW has higher volatility (6.08%) compared to VGPMX (5.98%). In terms of maximum drawdown, VGPMX dropped -78.85% vs VAW's -62.17%.

Which has better risk-adjusted returns?

VGPMX currently has the higher Sharpe Ratio (4.02 vs 1.29), 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.