VAW vs VTI

VAW vs VTI

Which is better, VAW or VTI?

Mid Cap Blend against Large Cap Blend.

VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window.

Lower Fees: VTIHigher Returns: VTI

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

MetricVAWVTI
Expense Ratio0.09%0.03%Best
AUM$2.9B$666.9B
Dividend Yield1.39%1.03%
Holdings1113,543
YTD Return+8.73%+11.65%Best
1Y Return+12.37%+17.34%Best
3Y Return (annualized)+10.06%+20.35%Best
5Y Return (annualized)+6.27%+11.72%Best
Volatility (annualized)20.4%15.1%Best
Max Drawdown-63.5%-56.6%Best
$10,000 over 5 years$13,554$17,404Best
Fund FamilyVanguard (US)Vanguard (US)
CategoryEquityEquity
StyleMid Cap BlendLarge Cap Blend
InceptionJan 26, 2004May 24, 2001

Not shown on this pair: Top 10 Weight.

Volatility and max drawdown are measured over the window both funds cover: Jan 30, 2004 to Sep 10, 2026 (22.6 years).

VAW vs VTI 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 22.6 years both funds cover.

VAW vs VTI Performance

Vanguard Materials ETF (VAW) is an ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year VAW returned +12.37% while VTI returned +17.34%. Year to date, VAW is up 8.73% versus a gain of 11.65% for VTI.

Over three years, VAW compounded at +10.06% per year against +20.35% for VTI; over five years the annualized figures are +6.27% and +11.72% respectively. Across the full 23-year window we track, VTI has the edge at +9.24% annualized vs +7.45%.

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 15.1% for VTI. 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 -56.6% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.

The two funds' monthly returns correlate at 0.87. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

VAW charges 0.09% per year while VTI 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 1.03% for VTI.

Holdings Overlap

VAW already in VTI85.0%

At least 85.0% of VAW's money is in holdings VTI also owns.

Stated as a floor: for VTI, our book for it covers 90.6% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.

Most of VAW is already inside VTI. Owning both mostly buys the same companies twice.

83 positions in common, counted across the 111 positions we hold weights for in VAW and 2,787 in VTI, against full books of 111 and 3,543.

Top Shared Holdings

StockWeight in VAWWeight in VTIDifference
LINLinde Plc Ordinary Shares15.72%0.33%15.39%
NEMNewmont Corp.6.59%0.14%6.45%
FCXFreeport-McMoran Copper & Gold Inc5.91%0.12%5.79%
SHWSherwin Williams Co/the5.29%0.11%5.18%
ECLEcolab, Inc.4.63%0.10%4.53%
APDAir Products & Chemicals In3.88%0.09%3.79%
CTVACorteva Inc.3.72%0.08%3.64%
NUENucor Corp.3.23%0.07%3.16%
VMCVulcan Materials Co.2.52%0.05%2.47%
MLMMartin Marietta Materials Inc.2.27%0.05%2.22%

85.0% of VAW is already inside VTI.

You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.

VAWVTI

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Frequently Asked Questions

Which is cheaper, VAW or VTI?

VAW has an expense ratio of 0.09% while VTI charges 0.03%. VTI is the cheaper option, by $6 a year on a $10,000 investment.

Which performed better, VAW or VTI?

Over the past year VAW returned +12.37% vs +17.34% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), VAW annualized +7.45% vs +9.24% for VTI. Past performance does not guarantee future results. This is information, not a recommendation.

Which is riskier, VAW or VTI?

VAW has been the more volatile fund at 20.4% annualized versus 15.1% for VTI. Worst drawdown: VAW -63.5% vs VTI -56.6%.

Should I hold both VAW and VTI?

VAW and VTI have a monthly-return correlation of 0.87, 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 VTI?

At least 85.0% of VAW's money is in holdings VTI also owns. Our book for VTI is partial, so the real figure is this or higher. They hold 83 positions in common, counted across the 111 positions we hold weights for in VAW and 2,787 in VTI.

Which pays a higher dividend, VAW or VTI?

VAW yields 1.39% while VTI yields 1.03%, so VAW currently pays the higher dividend yield.

Is VTI better than VAW?

VTI has a lower expense ratio. VTI led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.