XLB vs. VAW
Compare and contrast key facts about Materials Select Sector SPDR ETF (XLB) and Vanguard Materials ETF (VAW).
XLB and VAW are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. XLB is a passively managed fund by State Street that tracks the performance of the Materials Select Sector Index. It was launched on Dec 16, 1998. 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 XLB 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.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: XLB or VAW.
Key characteristics
| XLB | VAW | |
|---|---|---|
| YTD Return | 5.03% | 3.64% |
| 1Y Return | 14.74% | 14.48% |
| 3Y Return (Ann) | 4.59% | 4.37% |
| 5Y Return (Ann) | 11.72% | 11.26% |
| 10Y Return (Ann) | 8.79% | 8.46% |
| Sharpe Ratio | 1.11 | 1.07 |
| Daily Std Dev | 14.68% | 15.24% |
| Max Drawdown | -59.83% | -62.17% |
| Current Drawdown | -3.80% | -4.12% |
Correlation
The correlation between XLB and VAW is 0.98, 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
XLB vs. VAW - Performance Comparison
In the year-to-date period, XLB achieves a 5.03% return, which is significantly higher than VAW's 3.64% return. Both investments have delivered pretty close results over the past 10 years, with XLB having a 8.79% annualized return and VAW not far behind at 8.46%. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
Compare stocks, funds, or ETFs
Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.
XLB vs. VAW - Expense Ratio Comparison
XLB has a 0.13% expense ratio, which is higher than VAW's 0.10% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
XLB vs. VAW - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Materials Select Sector SPDR ETF (XLB) 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.
Dividends
XLB vs. VAW - Dividend Comparison
XLB's dividend yield for the trailing twelve months is around 1.91%, more than VAW's 1.66% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
XLB Materials Select Sector SPDR ETF | 1.91% | 2.00% | 2.26% | 1.62% | 1.72% | 1.98% | 2.20% | 1.66% | 1.95% | 2.24% | 1.97% | 2.08% |
VAW Vanguard Materials ETF | 1.66% | 1.72% | 1.98% | 1.44% | 1.67% | 1.94% | 2.03% | 1.63% | 1.67% | 2.30% | 1.76% | 1.84% |
Drawdowns
XLB vs. VAW - Drawdown Comparison
The maximum XLB drawdown since its inception was -59.83%, roughly equal to the maximum VAW drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for XLB and VAW. For additional features, visit the drawdowns tool.
Volatility
XLB vs. VAW - Volatility Comparison
Materials Select Sector SPDR ETF (XLB) and Vanguard Materials ETF (VAW) have volatilities of 3.27% and 3.27%, 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.