VAW vs VOO
Vanguard Materials ETF vs Vanguard S&P 500 ETF
Which is better, VAW or VOO?
Mid Cap Blend against Large Cap Blend.
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 56.2%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | VAW | VOO |
|---|---|---|
| Expense Ratio | 0.09% | 0.03%Best |
| AUM | $2.9B | $997.4B |
| Dividend Yield | 1.39% | 1.04% |
| Holdings | 111 | 509 |
| YTD Return | +8.73% | +11.55%Best |
| 1Y Return | +12.37% | +17.54%Best |
| 3Y Return (annualized) | +10.06% | +20.71%Best |
| 5Y Return (annualized) | +6.27% | +12.80%Best |
| Volatility (annualized) | 19.1% | 14.1%Best |
| Max Drawdown | -43.6% | -34.3%Best |
| $10,000 over 5 years | $13,554 | $18,262Best |
| Top 10 Weight | 56.2% | 36.4%Best |
| Fund Family | Vanguard (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Mid Cap Blend | Large Cap Blend |
| Inception | Jan 26, 2004 | Sep 7, 2010 |
Volatility and max drawdown are measured over the window both funds cover: Sep 9, 2010 to Sep 10, 2026 (16 years).
VAW vs VOO growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 16 years both funds cover.
VAW vs VOO Performance
Vanguard Materials ETF (VAW) is an ETF from Vanguard (US) and Vanguard S&P 500 ETF (VOO) is an ETF from Vanguard (US). Over the past year VAW returned +12.37% while VOO returned +17.54%. Year to date, VAW is up 8.73% versus a gain of 11.55% for VOO.
Over three years, VAW compounded at +10.06% per year against +20.71% for VOO; over five years the annualized figures are +6.27% and +12.80% respectively. Across the full 16-year window we track, VOO has the edge at +13.35% annualized vs +8.41%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VAW has been the more volatile fund, with annualized monthly volatility of 19.1% 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 -43.6% for VAW and -34.3% for VOO. Drawdown depth is what each fund did in the worst stretch of the window measured above.
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 1.04% for VOO.
Holdings Overlap
72.2% of VAW's money is in holdings VOO also owns. 1.7% of VOO's money is in holdings VAW also owns.
Most of VAW is already inside VOO. Owning both mostly buys the same companies twice.
25 positions in common, counted across the 111 positions we hold weights for in VAW and 505 in VOO, against full books of 111 and 509.
What only one of them owns
Our book lists 471 positions for VOO that do not appear in our book for VAW (97.8% of the fund), and 77 for VAW that do not appear in VOO (20.4%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in VAW | Weight in VOO | Difference |
|---|---|---|---|
| LINLinde Plc Ordinary Shares | 15.72% | 0.37% | 15.35% |
| NEMNewmont Corp. | 6.59% | 0.15% | 6.44% |
| FCXFreeport-McMoran Copper & Gold Inc | 5.91% | 0.14% | 5.77% |
| SHWSherwin Williams Co/the | 5.29% | 0.12% | 5.17% |
| ECLEcolab, Inc. | 4.63% | 0.11% | 4.52% |
| APDAir Products & Chemicals In | 3.88% | 0.10% | 3.78% |
| CTVACorteva Inc. | 3.72% | 0.09% | 3.63% |
| NUENucor Corp. | 3.23% | 0.08% | 3.15% |
| VMCVulcan Materials Co. | 2.52% | 0.06% | 2.46% |
| MLMMartin Marietta Materials Inc. | 2.27% | 0.05% | 2.22% |
72.2% of VAW is already inside VOO.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $6 a year on a $10,000 investment.
Which performed better, VAW or VOO?
Over the past year VAW returned +12.37% vs +17.54% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (16 years), VAW annualized +8.41% vs +13.35% for VOO. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, VAW or VOO?
VAW has been the more volatile fund at 19.1% annualized versus 14.1% for VOO. Worst drawdown: VAW -43.6% vs VOO -34.3%.
Should I hold both VAW and VOO?
VAW and VOO have a monthly-return correlation of 0.83, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between VAW and VOO?
72.2% of VAW's money is in holdings VOO also owns. 1.7% of VOO's is in holdings VAW also owns. They hold 25 positions in common, counted across the 111 positions we hold weights for in VAW and 505 in VOO.
Which pays a higher dividend, VAW or VOO?
VAW yields 1.39% while VOO yields 1.04%, so VAW currently pays the higher dividend yield.
Is VOO better than VAW?
VOO has a lower expense ratio. VOO led over 1Y, 3Y, 5Y and the full window. VOO is less concentrated, with 36.4% of the fund in its ten largest positions against 56.2%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.