VAW vs VOO
Vanguard Materials ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | VAW | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $2.9B | $997.4B | |
| Dividend Yield | 1.39% | 1.08% | |
| Holdings | 111 | 509 | |
| YTD Return | +12.37% | +13.20% | |
| 1Y Return | +17.34% | +21.62% | |
| 3Y Return (annualized) | +11.65% | +22.16% | |
| 5Y Return (annualized) | +7.20% | +13.42% | |
| Volatility (annualized) | 20.4% | 14.1% | |
| Max Drawdown | -63.5% | -34.3% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | Sep 7, 2010 |
VAW vs VOO Performance
Vanguard Materials ETF (VAW) is a ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year VAW returned +17.34% while VOO returned +21.62%. Year to date, VAW is up 12.37% versus a gain of 13.20% for VOO.
Over three years, VAW compounded at +11.65% per year against +22.16% for VOO; over five years the annualized figures are +7.20% and +13.42% respectively. Across the full 16-year window we track, VOO has the edge at +13.51% annualized vs +7.63%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VAW has been the more volatile fund, with annualized monthly volatility of 20.4% compared with 14.1% for VOO. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -63.5% for VAW and -34.3% for VOO. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.83. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
VAW charges 0.09% per year while VOO charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, VAW currently yields 1.39% against 1.08% for VOO.
Holdings Overlap
VAW and VOO share 25 holdings out of 591 unique holdings combined, representing a 1.7% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, VAW or VOO?
VAW has an expense ratio of 0.09% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VAW or VOO?
Over the past year VAW returned +17.34% vs +21.62% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VAW annualized +7.63% vs +13.51% for VOO. Past performance does not guarantee future results.
Which is riskier, VAW or VOO?
VAW has been the more volatile fund at 20.4% annualized versus 14.1% for VOO. Worst drawdown: VAW -63.5% vs VOO -34.3%.
Should I hold both VAW and VOO?
VAW and VOO have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VAW and VOO?
VAW and VOO share 25 common holdings with a 1.7% weight overlap. Combined, they hold 591 unique securities.
Which pays a higher dividend, VAW or VOO?
VAW yields 1.39% while VOO yields 1.08%, so VAW currently pays the higher dividend yield.
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