VAW - ETF AI Analysis
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Vanguard Materials ETF (VAW)
Rating:67Neutral
Price Target:―
Positive Factors
Strong Recent Performance
The ETF has shown solid gains so far this year and in recent months, indicating positive momentum in its holdings.
Low Expense Ratio
The fund’s very low fee means more of the investment returns stay in investors’ pockets instead of going to costs.
Leading Materials Companies
Several of the largest positions, such as Linde, Freeport-McMoRan, and Air Products, have delivered strong year-to-date results that support the fund’s overall performance.
Negative Factors
High Sector Concentration
With most of its assets in the materials sector, the ETF is heavily exposed to swings in commodity and industrial demand.
Top Holding Concentration
A small number of companies make up a large share of the portfolio, which increases the impact if any of these stocks run into trouble.
Limited International Diversification
The fund is dominated by U.S. stocks with only small exposure to other countries, offering little geographic diversification.
VAW vs. SPDR S&P 500 ETF (SPY)
AUM3.08B
RegionNorth America
Expense Ratio0.09%
Beta0.82
IssuerVanguard
Inception DateJan 26, 2004
Dividend Yield1.37%
Asset ClassEquity
Index TrackedMSCI US IMI 25/50 Materials
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume46,771
30 Day Avg. Volume75,133
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
270.43Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering112
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
VAW Summary
Vanguard Materials ETF (VAW) is a fund that tracks the MSCI US IMI 25/50 Materials Index, focusing on companies that make basic materials used in construction, manufacturing, and industry. Its holdings include well-known names like Linde and Sherwin-Williams, along with makers of chemicals, metals, and building materials. Investors might consider VAW to diversify their portfolio and benefit from long-term growth tied to industrial and infrastructure demand. However, because it is heavily focused on the materials sector, its price can rise and fall sharply with the economy and commodity markets.
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 industrial commodities. Linde sits in the driver’s seat, steadily rising and doing much of the heavy lifting for the fund, while Freeport-McMoRan and Nucor add extra punch with strong recent momentum tied to metals demand. Newmont has been more of a mixed bag, bouncing lately but still choppy over the past few months, and CRH looks like it’s losing steam, acting as a small brake on performance. Overall, the ETF is concentrated in a handful of big materials names rather than broad tech or consumer plays.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Linde | 15.14% | $660.81M | $236.47B | 14.01% | 66 Neutral | |
| Newmont Mining | 7.73% | $337.20M | $128.85B | 114.68% | 81 Outperform | |
| Freeport-McMoRan | 5.52% | $240.93M | $87.74B | 62.65% | 67 Neutral | |
| Sherwin-Williams Company | 4.94% | $215.49M | $83.67B | 1.17% | 66 Neutral | |
| CRH plc | 4.61% | $201.13M | ― | ― | 76 Outperform | |
| Ecolab | 4.44% | $193.57M | $76.11B | 12.07% | 66 Neutral | |
| Air Products and Chemicals | 4.05% | $176.73M | $67.19B | 12.22% | 46 Neutral | |
| Corteva | 3.70% | $161.47M | $53.57B | 29.01% | 75 Outperform | |
| Nucor | 2.53% | $110.47M | $48.81B | 84.44% | 74 Outperform | |
| Vulcan Materials | 2.35% | $102.70M | $38.10B | 18.72% | 77 Outperform |
VAW Technical Analysis
Neutral
―
Price Trends
230.14
Positive
225.42
Positive
212.64
Positive
Market Momentum
1.16
Positive
50.25
Neutral
20.78
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VAW, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 233.80, equal to the 50-day MA of 230.14, and equal to the 200-day MA of 212.64, indicating a neutral trend. The MACD of 1.16 indicates Positive momentum. The RSI at 50.25 is Neutral, neither overbought nor oversold. The STOCH value of 20.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VAW.
VAW Peer Comparison
Comparison Results
Performance Comparison
VAW
Vanguard Materials ETF
231.85
47.96
26.08%
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.
DisclaimerThis 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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