VAW ETF

The S&P 500 began 2025 with a lot of ups and downs, but it has still increased by 3.8% so far as of the market close on January 24. Additionally, certain sectors are already showing strong performance in the new year.

VAW and XLB are both strong ETFs in the materials sector, showing similar performance. However, VAW has lower concentration risk and offers more diversification, with investments in Specialty Chemicals, Industrial Gases, and construction materials, which can help it maintain pricing power. This makes VAW a potentially good option for protecting against inflation concerns and high interest rates.

The Vanguard Materials Index Fund ETF aims to mirror the MSCI US Investable Market Materials 25/50 Index and has a low expense ratio of 0.10%. It currently manages $4.3 billion and holds 119 stocks, with major investments in companies like Linde PLC and Sherwin-Williams, focusing on areas like Specialty Chemicals and Industrial Gases. With a forward P/E ratio of around 19-20x and a potential internal rate of return of about 10-11%, VAW may be considered slightly undervalued.

The Vanguard Materials ETF (VAW) started on January 26, 2004, and is a passively managed exchange-traded fund. It aims to provide wide-ranging access to the Materials - Broad section of the stock market.

The Vanguard Materials ETF (VAW) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Materials - Broad segment of the equity market.

A monthly article series reports industry metrics in materials. The basic materials sector is moderately overvalued based on 11-year averages. The construction materials industry still looks relatively attractive.

The materials sector is underowned and poised for growth as China's economy stabilizes and global infrastructure spending increases. Vanguard Materials Index Fund ETF Shares is a low-cost option to invest in the US materials market, with diversified holdings across 120 stocks. The VAW ETF's sector composition is heavy on chemicals and industrial gases, with exposure to various materials-related businesses, offering potential growth opportunities.

The construction materials industry has the highest value and quality ratings within its sector, while the mining and metals subsector is considered the most overvalued. Quick information on VAW, a potential alternative to XLB for investors with long-term goals.

Designed to provide broad exposure to the Materials - Broad segment of the equity market, the Vanguard Materials ETF (VAW) is a passively managed exchange traded fund launched on 01/26/2004.