The S&P 500 has had a volatile start to 2025 but has still managed to gain 3.8% year to date as of market close on Jan. 24. And some sectors already stand out as top performers in the new year.
Launched on 01/26/2004, the Vanguard Materials ETF (VAW) is a passively managed exchange traded fund designed to provide a broad exposure to the Materials - Broad segment of the equity market.
VAW and XLB are great materials sector ETFs with similar performance, but VAW offers lower concentration risk and broader diversification. VAW's exposure to Specialty Chemicals, Industrial Gases, and construction materials provides good pricing power and less dependence on commodity market dynamics. This could make it a good hedge in a market characterized by renewed inflation fears and interest rates above the neutral level.
Designed to provide broad exposure to the Materials - Broad segment of the equity market, the Vanguard Materials ETF (VAW) is a passively managed exchange traded fund launched on 01/26/2004.
Vanguard Materials Index Fund ETF seeks to replicate the MSCI US Investable Market Materials 25/50 Index, with a low expense ratio of 0.10%. AUM: $4.3 billion. The portfolio includes 119 stocks as of recently, with top holdings including Linde PLC and Sherwin-Williams, with emphasis on sub-sectors such as Specialty Chemicals and Industrial Gases. With an actual (and fair) forward P/E of circa 19-20x, and an IRR potential of circa 10-11% (in a base case), VAW is likely at least slightly undervalued.
The Vanguard Materials ETF (VAW) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Materials - Broad segment of the equity market.
The Vanguard Materials ETF (VAW) was launched on 01/26/2004, and is a passively managed exchange traded fund designed to offer broad exposure to the Materials - Broad segment of the equity market.
A monthly article series reports industry metrics in materials. The basic materials sector is moderately overvalued based on 11-year averages. The construction materials industry still looks relatively attractive.
The materials sector is underowned and poised for growth as China's economy stabilizes and global infrastructure spending increases. Vanguard Materials Index Fund ETF Shares is a low-cost option to invest in the US materials market, with diversified holdings across 120 stocks. The VAW ETF's sector composition is heavy on chemicals and industrial gases, with exposure to various materials-related businesses, offering potential growth opportunities.
Looking for broad exposure to the Materials - Broad segment of the equity market? You should consider the Vanguard Materials ETF (VAW), a passively managed exchange traded fund launched on 01/26/2004.