Linde

Sherwin-Williams

Air Products and Chemicals

CRH Plc Sponsored ADR

Ecolab

Freeport-McMoRan

Newmont Mining

Corteva Inc

Vulcan Materials

Nucor

Vanguard Materials ETF

VAW tracks a very broad market-cap-weighted index of US materials companies.

The fund tracks a market cap-weighted index of companies in the US materials sector.

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.

VAW: A Potential Hedge Against Market Inflation Fears

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.

Should You Invest in the Vanguard Materials ETF (VAW)?

Fidelity MSCI Materials Index ETF

iShares U.S. Basic Materials ETF

Materials Select Sector SPDR Fund

Going into the Q3 earnings season, releases from the sector giants will determine the movement of the material ETFs.

What's in Store for Materials ETFs in Q3 Earnings?

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.

VAW: Materials Stocks Offer A Potential IRR Of 9-12%

Dow Inc

New Linde PLC

Going into the Q2 earnings season, earnings releases from the sector giants will determine the movement of these funds.

What's in Store for Materials ETFs in Q2 Earnings?

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.

VAW: Materials Dashboard For July

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.

VAW: After Massive Underperformance, Some Real Potential

iShares U.S. Aerospace & Defense ETF

SPDR S&P Homebuilders ETF

Industrial Select Sector SPDR Fund

Consumer Staples Select Sector SPDR Fund

Investors could be well served by ETFs from sectors that house the top-ranked industries amid the uncertainty about the timing of Fed rate cuts.

5 Top-Ranked Sector ETFs to Buy in June

SPDR Gold Trust

JPMorgan Equity Premium Income ETF

Cohen And Steers Total Return Realty Fund

Cohen & Steers Quality Income Realty Fund

Schwab US Dividend Equity ETF

iShares 20+ Year Treasury Bond ETF

Reaves Utility Income Fund

The SWAN (Sleep Well At Night) strategy aims to minimize volatility and draw-downs while achieving high-income and market-matching growth. The strategy consists of two buckets: a Funds-based High-Income Dividend bucket and a Hedging (Rotational) bucket. The Funds-based DGI bucket provides simplicity, diversification, and passive management, while the Rotational bucket offers growth and a built-in hedging mechanism to limit draw-downs.

How To Invest $100,000 In Today's Market With A SWAN Strategy, 6% Income

The construction materials industry has the best value and quality scores in the sector. The mining and metals subsector is the most overvalued. Fast facts on VAW, an alternative to XLB for long-term investors.

VAW: Materials Dashboard For April

Going into the Q1 earnings season, earnings releases from the sector giants will determine the movement of these funds.

Will Materials ETFs Gain Further as Q1 Earnings Unfold?

The basic materials sector is overvalued by about 6% based on 11-year averages. Nevertheless, the construction materials industry is undervalued by about 17%. The subsector with the worst value score is mining/metals. Fast facts on Vanguard Materials Index Fund ETF Shares, a good alternative to Materials Select Sector SPDR® Fund ETF.

VAW: Materials Dashboard For January

The Vanguard Materials Index Fund ETF Shares ETF's (NYSEARCA: VAW ) more than 10% year-to-date surge suggests materials stocks shined in 2023. However, a closer look at the matter shows that intra-sector performance is divided.

Materials Sector Overview: 3 Factors Influencing Market Dynamics in 2024

The basic materials sector is undervalued relative to 11-year averages. The construction materials industry has the best value and quality scores in the sector. Vanguard Materials Index Fund ETF Shares, a materials fund less concentrated than XLB.

VAW: Materials Dashboard For November

The materials sector is close to historical baselines regarding valuation and quality scores. Construction materials are the most attractive subsector, whereas mining/metals is the most overvalued one. Fast facts on Vanguard Materials Index Fund ETF Shares, an alternative to XLB.

VAW: Materials Dashboard For September

iShares Core U.S. Aggregate Bond ETF

Vanguard Intermediate-Term Bond ETF

Vanguard Total Bond Market ETF

Vanguard Short-Term Bond ETF

iShares TIPS Bond ETF

Vanguard Small-Cap ETF

Vanguard Energy ETF

Vanguard Financials ETF

Vanguard Real Estate ETF

Vanguard Mid-Cap ETF

Vanguard Utilities ETF

Vanguard Total Stock Market ETF

Vanguard Short-Term Inflation-Protected Securities ETF

Vanguard Value ETF

Vanguard Growth ETF

Inflation above 2% has a negative impact on stock prices; the Vanguard Total Stock Market ETF has averaged poor performance during such years. Various sub-sectors of the stock market and sectors of the bond market are affected differently by high inflation. My data shows that energy, utilities, and gold stocks tend to perform well during periods of high inflation, while value category funds outperform growth category funds.

With Inflation Still High, These ETFs Will Likely Disappoint This Year

Material stocks have seen rising share prices these past few months, outperforming broader equity indexes. Earnings have stagnated, and are forecasted to decline in the coming months. Higher share prices and declining earnings spell trouble for material stocks moving forward, and for materials funds like VAW.

VAW: Fairly Valued After Recent Losses

First Trust Materials AlphaDEX Fund

The First Trust Materials AlphaDEX® Fund ETF invests based on the StrataQuant Materials Index. The Vanguard Materials Index Fund ETF invests based on the MSCI US Investable Market Index (IMI)/Materials 25/50 Index. This article covers both ETFs and their underlying index. Afterward, I compare the ETFs for both returns and risk.

FXZ Vs. VAW: Results Might Surprise Materials Sector Investors

All subsectors are above their baselines in valuation and quality scores. Construction materials and mining/metals are the most attractive ones.

VAW: Materials Dashboard For March

Mining/metals is the best-ranked subsector regarding value and quality scores. Construction materials come in second position.

VAW: Materials Dashboard For December

VAW is a diversified materials index ETF. It performs comparatively well when inflation rises and valuations normalize, as is currently the case.

VAW: Diversified Materials Equity Index ETF, Strong Performance Track-Record, Cheap Valuation, Some Inflation Protection

Mining/metals and construction materials are undervalued relative to historical averages. Fast facts on VAW, an alternative to XLB.

VAW: Materials Dashboard For August

Schwab U.S. Small-Cap ETF

SCHA and VAW saw massive trading volume in yesterday session.

2 ETFs to Watch for Outsized Volume on Small-Cap and Materials

As most of you know, Putin's horrific war in Ukraine has effectively broken the global energy & food supply chains, causing inflation and more pressure on the Fed to raise rates. That, combined with the pandemic spending and reopening theme, has caused commodity and materials prices to soar and investors are seeking ways to protect their portfolios from inflation.

The Vanguard Materials ETF Is Outperforming The S&P 500

Inflation is now well over the Fed's preferred level of 2% and promises to remain overheated during the remainder of 2022.So the question becomes what categories of ETFs (or even mutual funds) an investor should consider owning in order to avoid the generally poor returns that inflation may bring.

News for Vanguard Materials ETF ETF (VAW)