VAW vs VTI
Vanguard Materials ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | VAW | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.03% | |
| AUM | $2.9B | $666.9B | |
| Dividend Yield | 1.39% | 1.07% | |
| Holdings | 111 | 3,543 | |
| YTD Return | +14.44% | +13.14% | |
| 1Y Return | +19.28% | +22.35% | |
| 3Y Return (annualized) | +12.37% | +21.83% | |
| 5Y Return (annualized) | +7.25% | +12.01% | |
| Volatility (annualized) | 20.4% | 15.3% | |
| Max Drawdown | -63.5% | -56.6% | |
| Fund Family | Vanguard (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 26, 2004 | May 24, 2001 |
VAW vs VTI Performance
Vanguard Materials ETF (VAW) is a ETF from Vanguard (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year VAW returned +19.28% while VTI returned +22.35%. Year to date, VAW is up 14.44% versus a gain of 13.14% for VTI.
Over three years, VAW compounded at +12.37% per year against +21.83% for VTI; over five years the annualized figures are +7.25% and +12.01% respectively. Across the full 23-year window we track, VTI has the edge at +8.09% annualized vs +7.72%. 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 15.3% 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 worth weighing if you expect to sell during market stress rather than ride it out.
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 1.07% for VTI.
Holdings Overlap
VAW and VTI share 83 holdings out of 2815 unique holdings combined, representing a 1.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $6 per year of difference.
Which performed better, VAW or VTI?
Over the past year VAW returned +19.28% vs +22.35% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (23 years), VAW annualized +7.72% vs +8.09% for VTI. Past performance does not guarantee future results.
Which is riskier, VAW or VTI?
VAW has been the more volatile fund at 20.4% annualized versus 15.3% 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 combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between VAW and VTI?
VAW and VTI share 83 common holdings with a 1.6% weight overlap. Combined, they hold 2815 unique securities.
Which pays a higher dividend, VAW or VTI?
VAW yields 1.39% while VTI yields 1.07%, so VAW currently pays the higher dividend yield.
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