VIS vs. VAW

Last updated Aug 2, 2026

VIS (Vanguard Industrials ETF) and VAW (Vanguard Materials ETF) are both exchange-traded funds - VIS is a Industrials Equities fund tracking the MSCI US Investable Market Industrials 25/50 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, VIS returned 13.86%/yr vs 9.56%/yr for VAW. Their correlation of 0.84 means they have usually moved in the same direction. Both charge a 0.09% expense ratio.

Performance

VIS vs. VAW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard Industrials ETF (VIS) 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, VIS achieves a 15.98% return, which is significantly higher than VAW's 8.16% return. Over the past 10 years, VIS has outperformed VAW with an annualized return of 13.86%, while VAW has yielded a comparatively lower 9.56% annualized return.

VIS

• 1D: 0.72%
• 1M: -3.01%
• 6M: 8.07%
• YTD: 15.98%
• 1Y: 21.89%
• 3Y*: 18.87%
• 5Y*: 13.25%
• 10Y*: 13.86%
• ALL TIME*: 11.05%

VAW

• 1D: -2.38%
• 1M: -4.20%
• 6M: -0.26%
• YTD: 8.16%
• 1Y: 17.08%
• 3Y*: 7.54%
• 5Y*: 5.77%
• 10Y*: 9.56%
• ALL TIME*: 9.02%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
VAW Vanguard Materials ETF	$9.35M	$9.71M	$12.39M
VIS Vanguard Industrials ETF	$22.93M	$23.95M	$29.49M

VIS vs. VAW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
VIS Vanguard Industrials ETF	15.98%	18.57%	16.85%	22.50%	-8.57%	20.80%	12.34%	30.09%	-14.01%	21.47%
VAW Vanguard Materials ETF	8.16%	12.30%	0.48%	13.67%	-11.80%	27.43%	19.44%	23.53%	-17.49%	23.76%

Correlation

The correlation between VIS and VAW is 0.70, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.70
Correlation (3Y) Balances recent behavior with more history.	0.78
Correlation (5Y) Shows whether the relationship held over a longer period.	0.82
Correlation (10Y) Provides a long-term view across more market conditions.	0.84
Correlation (All Time) Calculated using the full available price history since Sep 29, 2004	0.84

The correlation between VIS and VAW shifts across timeframes, from 0.70 (1 year) to 0.84 (10 years), reflecting how their relationship changes across market environments.

VIS vs. VAW - Sectors Allocation Comparison

Sectors	VIS	VAW
Industrials	93.2%	0.6%
Technology	5.5%	0.1%
Consumer Cyclical	0.9%	9.5%
Energy	0.5%	0.0%
Basic Materials	0.2%	89.3%
Financial Services	0.2%	-
Utilities	0.1%	-
Real Estate	0.0%	-
Healthcare	0.0%	0.5%
Communication Services	0.0%	-
Consumer Defensive	-	0.0%

Return for Risk

VIS vs. VAW — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

VIS

VIS Risk / Return Rank: 46
VIS Sharpe Ratio Rank: 45
VIS Sortino Ratio Rank: 45
VIS Omega Ratio Rank: 42
VIS Calmar Ratio Rank: 46
VIS Martin Ratio Rank: 55

VAW

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

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

VIS vs. VAW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard Industrials ETF (VIS) 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.

	VIS	VAW	Difference
Sharpe ratio: Return per unit of total volatility	1.12	0.87	+0.25
Sortino ratio: Return per unit of downside risk	1.63	1.31	+0.32
Omega ratio: Gain probability vs. loss probability	1.20	1.16	+0.04
Calmar ratio: Return relative to maximum drawdown	1.63	1.21	+0.43
Martin ratio: Return relative to average drawdown	6.48	3.47	+3.01

VIS vs. VAW - Sharpe Ratio Comparison

The current VIS Sharpe Ratio is 1.12, which is comparable to the VAW Sharpe Ratio of 0.87. The chart below compares the historical Sharpe Ratios of VIS 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.

Drawdowns

VIS vs. VAW - Drawdown Comparison

The maximum VIS drawdown since its inception was -63.51%, roughly equal to the maximum VAW drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for VIS and VAW.

Drawdown Indicators

	VIS	VAW	Difference
Max Drawdown Largest peak-to-trough decline	-63.51%	-62.17%	-1.34%
Max Drawdown (1Y) Largest decline over 1 year	-12.29%	-13.42%	+1.13%
Max Drawdown (3Y) Largest decline over 3 years	-20.80%	-23.21%	+2.41%
Max Drawdown (5Y) Largest decline over 5 years	-22.96%	-25.50%	+2.54%
Max Drawdown (10Y) Largest decline over 10 years	-42.42%	-41.13%	-1.29%
Current Drawdown Current decline from peak	-4.42%	-8.05%	+3.63%
Average Drawdown Average peak-to-trough decline	-8.33%	-9.60%	+1.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	4.65%	-1.56%

Volatility

VIS vs. VAW - Volatility Comparison

The current volatility for Vanguard Industrials ETF (VIS) is 5.07%, while Vanguard Materials ETF (VAW) has a volatility of 5.54%. This indicates that VIS 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.

Volatility by Period

	VIS	VAW	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.07%	5.54%	-0.47%
Volatility (6M) Calculated over the trailing 6-month period	14.66%	15.14%	-0.48%
Volatility (1Y) Calculated over the trailing 1-year period	17.97%	18.68%	-0.71%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.55%	19.75%	-1.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.48%	21.22%	-0.74%

VIS vs. VAW - Expense Ratio Comparison

Both VIS and VAW have an expense ratio of 0.09%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.

Dividends

VIS vs. VAW - Dividend Comparison

VIS's dividend yield for the trailing twelve months is around 0.90%, less than VAW's 1.42% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
VAW Vanguard Materials ETF	1.42%	1.55%	1.70%	1.72%	1.98%	1.44%	1.67%	1.94%	2.03%	1.63%	1.67%	2.30%
VIS Vanguard Industrials ETF	0.90%	1.01%	1.23%	1.36%	1.52%	1.11%	1.38%	1.68%	1.90%	1.60%	1.81%	1.94%

Frequently Asked Questions

Can I hold both VIS and VAW in my portfolio?

VIS and VAW have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VIS or VAW?

VAW has higher volatility (5.54%) compared to VIS (5.07%). In terms of maximum drawdown, VIS dropped -63.51% vs VAW's -62.17%.

Which ETF is better, VIS or VAW?

On 10-year performance, VIS leads with 13.86% vs 9.56% for VAW. Both ETFs have the same 0.09% expense ratio. On volatility, VIS has been the lower-risk option at 5.07%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VIS or VAW?

Over the 10-year period, VIS has performed better with a 13.86% return vs 9.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VIS or VAW?

VIS and VAW have the same expense ratio: 0.09% per year.

Which ETF pays a higher dividend yield, VIS or VAW?

VAW has the higher dividend yield at 1.42%, compared with 0.90% for VIS.

What is the main difference between VIS and VAW?

VIS is categorized as Industrials Equities, while VAW is Materials. VIS tracks MSCI US Investable Market Industrials 25/50 Index, while VAW tracks MSCI US Investable Market Materials 25/50 Index.

Which has better risk-adjusted returns?

VIS currently has the higher Sharpe Ratio (1.12 vs 0.87), 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.