XME vs. VAW

Last updated Aug 2, 2026

XME (SPDR S&P Metals & Mining ETF) and VAW (Vanguard Materials ETF) are both Materials funds - XME tracks the S&P Metals & Mining Select Industry Index while VAW tracks the MSCI US Investable Market Materials 25/50 Index. Both are passively managed. Over the past 10 years, XME returned 14.85%/yr vs 9.56%/yr for VAW. Their correlation of 0.81 means they have usually moved in the same direction. XME charges 0.35%/yr vs 0.09%/yr for VAW.

Performance

XME vs. VAW - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Metals & Mining ETF (XME) 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, XME achieves a -2.73% return, which is significantly lower than VAW's 8.16% return. Over the past 10 years, XME has outperformed VAW with an annualized return of 14.85%, while VAW has yielded a comparatively lower 9.56% annualized return.

XME

• 1D: -1.19%
• 1M: -4.26%
• 6M: -15.11%
• YTD: -2.73%
• 1Y: 39.51%
• 3Y*: 24.33%
• 5Y*: 18.53%
• 10Y*: 14.85%
• ALL TIME*: 5.47%

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
XME SPDR S&P Metals & Mining ETF	$205.06M	$204.83M	$245.34M

XME vs. VAW - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XME SPDR S&P Metals & Mining ETF	-2.73%	83.47%	-4.54%	21.51%	13.13%	34.92%	15.95%	14.69%	-26.78%	21.17%
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 XME 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.	0.73
Correlation (5Y) Shows whether the relationship held over a longer period.	0.77
Correlation (10Y) Provides a long-term view across more market conditions.	0.77
Correlation (All Time) Calculated using the full available price history since Jun 22, 2006	0.81

The correlation between XME and VAW shifts across timeframes, from 0.70 (1 year) to 0.81 (all time), reflecting how their relationship changes across market environments.

XME vs. VAW - Sectors Allocation Comparison

Sectors	XME	VAW
Basic Materials	75.3%	89.3%
Energy	23.5%	0.0%
Technology	2.2%	0.1%
Consumer Defensive	0.8%	0.0%
Industrials	0.4%	0.6%
Communication Services	-	-
Consumer Cyclical	-	9.5%
Financial Services	-	-
Healthcare	-	0.5%
Real Estate	-	-
Utilities	-	-

Return for Risk

XME vs. VAW — Risk / Return Rank

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

XME

XME Risk / Return Rank: 39
XME Sharpe Ratio Rank: 42
XME Sortino Ratio Rank: 41
XME Omega Ratio Rank: 40
XME Calmar Ratio Rank: 41
XME Martin Ratio Rank: 34

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.

XME vs. VAW - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Metals & Mining ETF (XME) 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.

	XME	VAW	Difference
Sharpe ratio: Return per unit of total volatility	1.03	0.87	+0.16
Sortino ratio: Return per unit of downside risk	1.52	1.31	+0.21
Omega ratio: Gain probability vs. loss probability	1.19	1.16	+0.03
Calmar ratio: Return relative to maximum drawdown	1.43	1.21	+0.23
Martin ratio: Return relative to average drawdown	3.22	3.47	-0.25

XME vs. VAW - Sharpe Ratio Comparison

The current XME Sharpe Ratio is 1.03, which is comparable to the VAW Sharpe Ratio of 0.87. The chart below compares the historical Sharpe Ratios of XME 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

XME vs. VAW - Drawdown Comparison

The maximum XME drawdown since its inception was -85.89%, which is greater than VAW's maximum drawdown of -62.17%. Use the drawdown chart below to compare losses from any high point for XME and VAW.

Drawdown Indicators

	XME	VAW	Difference
Max Drawdown Largest peak-to-trough decline	-85.89%	-62.17%	-23.72%
Max Drawdown (1Y) Largest decline over 1 year	-26.49%	-13.42%	-13.07%
Max Drawdown (3Y) Largest decline over 3 years	-30.47%	-23.21%	-7.26%
Max Drawdown (5Y) Largest decline over 5 years	-37.27%	-25.50%	-11.77%
Max Drawdown (10Y) Largest decline over 10 years	-61.69%	-41.13%	-20.56%
Current Drawdown Current decline from peak	-24.17%	-8.05%	-16.12%
Average Drawdown Average peak-to-trough decline	-43.93%	-9.60%	-34.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.77%	4.65%	+7.12%

Volatility

XME vs. VAW - Volatility Comparison

SPDR S&P Metals & Mining ETF (XME) has a higher volatility of 10.33% compared to Vanguard Materials ETF (VAW) at 5.54%. This indicates that XME's price experiences larger fluctuations and is considered to be riskier than VAW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XME	VAW	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.33%	5.54%	+4.79%
Volatility (6M) Calculated over the trailing 6-month period	28.52%	15.14%	+13.38%
Volatility (1Y) Calculated over the trailing 1-year period	36.88%	18.68%	+18.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.70%	19.75%	+12.95%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.88%	21.22%	+11.66%

XME vs. VAW - Expense Ratio Comparison

XME has a 0.35% expense ratio, which is higher than VAW's 0.09% expense ratio.

Dividends

XME vs. VAW - Dividend Comparison

XME's dividend yield for the trailing twelve months is around 0.37%, 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%
XME SPDR S&P Metals & Mining ETF	0.37%	0.38%	0.65%	1.00%	1.64%	0.70%	0.99%	2.43%	2.23%	1.15%	1.02%	2.61%

Frequently Asked Questions

Can I hold both XME and VAW in my portfolio?

XME 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, XME or VAW?

XME has higher volatility (10.33%) compared to VAW (5.54%). In terms of maximum drawdown, XME dropped -85.89% vs VAW's -62.17%.

Which ETF is better, XME or VAW?

On 10-year performance, XME leads with 14.85% vs 9.56% for VAW. On fees, VAW is cheaper at 0.09% per year. On volatility, VAW has been the lower-risk option at 5.54%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XME or VAW?

Over the 10-year period, XME has performed better with a 14.85% return vs 9.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XME or VAW?

VAW is cheaper with a 0.09% expense ratio, compared with 0.35% for XME.

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

VAW has the higher dividend yield at 1.42%, compared with 0.37% for XME.

What is the main difference between XME and VAW?

XME tracks S&P Metals & Mining Select Industry Index, while VAW tracks MSCI US Investable Market Materials 25/50 Index. They also come from different issuers: State Street and Vanguard. Their fees differ too: 0.35% for XME and 0.09% for VAW.

Which has better risk-adjusted returns?

XME currently has the higher Sharpe Ratio (1.03 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.