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VAW - ETF AI Analysis
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Vanguard Materials ETF (VAW)
Rating:68Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Leading Materials Holdings
Several major holdings in the materials sector, such as Newmont Mining and Freeport-McMoRan, have delivered strong year-to-date performance, helping support the fund’s returns.
Low Expense Ratio
The fund’s very low expense ratio means investors keep more of the ETF’s returns instead of paying high fees.
Negative Factors
Sector Concentration in Materials
The ETF is heavily focused on the materials sector, which increases risk if that part of the market experiences a downturn.
High Weight in Top Holdings
A small group of companies, including Linde and Newmont Mining, make up a large share of the portfolio, raising exposure to company-specific setbacks.
Limited International Diversification
Most of the ETF’s assets are invested in U.S. companies, offering only modest exposure to markets outside the United States.
VAW vs. SPDR S&P 500 ETF (SPY)
AUM3.14B
RegionNorth America
Expense Ratio0.09%
Beta0.81
IssuerVanguard
Inception DateJan 26, 2004
Dividend Yield1.34%
Asset ClassEquity
Index TrackedMSCI US IMI 25/50 Materials
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume90,848
30 Day Avg. Volume88,545
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
256.13Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering113
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
VAW Summary
Vanguard Materials ETF (VAW) is a fund that follows the MSCI US IMI 25/50 Materials Index, focusing on companies that make basic materials like chemicals, metals, and construction products. It holds well-known names such as Linde and Sherwin-Williams, giving you a simple way to invest in the building blocks of the economy, from infrastructure to manufacturing. Someone might invest in VAW to diversify beyond tech and gain exposure to economic growth tied to construction and industry. A key risk is that materials stocks are cyclical, so the ETF can rise and fall sharply with the economy and commodity prices.
How much will it cost me?The Vanguard Materials ETF (VAW) has an expense ratio of 0.09%, which means you’ll pay $0.90 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks an index, keeping costs down for investors.
What would affect this ETF?The Vanguard Materials ETF (VAW) could benefit from increased infrastructure spending or industrial growth in the U.S., as its holdings are heavily focused on companies producing essential materials like chemicals and metals. However, it may face challenges from rising interest rates, which can increase borrowing costs for construction projects, or economic slowdowns that reduce demand for materials. Regulatory changes affecting environmental standards or mining operations could also impact the ETF's performance.
VAW Top 10 Holdings
VAW is very much a U.S. materials story, with a heavy tilt toward chemicals and commodity producers. Linde sits in the driver’s seat but has been more mixed lately, so it’s not doing much heavy lifting. Instead, Newmont and Freeport-McMoRan are powering the fund, riding stronger metals and mining sentiment. Sherwin-Williams and Ecolab add a steadier, more defensive flavor, rising but with some valuation worries. Construction names like CRH and Vulcan are more of a supporting cast, occasionally stumbling but not derailing the overall uptrend.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Linde | 14.06% | $612.41M | $224.60B | 3.26% | 66 Neutral | |
| Newmont Mining | 8.10% | $352.71M | $137.28B | 164.79% | 81 Outperform | |
| Freeport-McMoRan | 5.67% | $247.15M | $90.23B | 59.90% | 67 Neutral | |
| Sherwin-Williams Company | 5.51% | $240.08M | $91.45B | 4.50% | 66 Neutral | |
| CRH plc | 5.40% | $235.33M | £61.92B | 5.45% | 76 Outperform | |
| Ecolab | 4.72% | $205.72M | $84.74B | 14.12% | 66 Neutral | |
| Air Products and Chemicals | 3.81% | $165.97M | $62.29B | -11.75% | 46 Neutral | |
| Corteva | 3.24% | $141.30M | $50.46B | 16.40% | 75 Outperform | |
| Nucor | 2.68% | $116.59M | $41.93B | 28.56% | 74 Outperform | |
| Vulcan Materials | 2.60% | $113.49M | $43.29B | 20.12% | 77 Outperform |
VAW Technical Analysis
Positive
―
Price Trends
219.91
Positive
209.50
Positive
203.05
Positive
Market Momentum
5.83
Negative
61.67
Neutral
68.76
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VAW, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 232.95, equal to the 50-day MA of 219.91, and equal to the 200-day MA of 203.05, indicating a bullish trend. The MACD of 5.83 indicates Negative momentum. The RSI at 61.67 is Neutral, neither overbought nor oversold. The STOCH value of 68.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VAW.
VAW Peer Comparison
Comparison Results
Performance Comparison
VAW
Vanguard Materials ETF
238.68
42.96
21.95%
VDE
Vanguard Energy ETF
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AIRR
First Trust RBA American Industrial Renaissance ETF
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XLB
Materials Select Sector SPDR Fund
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XME
SPDR S&P Metals & Mining ETF
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IYM
iShares U.S. Basic Materials ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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