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VAW - AI Analysis
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Vanguard Materials ETF (VAW)
Rating:71Outperform
Price Target:
$226.00
Positive Factors
Strong Top Holdings
Several of the largest positions, such as Linde and Martin Marietta Materials, have delivered steady gains, supporting the ETF’s overall performance.
Low Expense Ratio
The ETF charges a very low expense ratio, making it a cost-effective choice for investors.
Focused Sector Exposure
The ETF’s heavy focus on the materials sector allows investors to target a specific industry with growth potential.
Negative Factors
High Sector Concentration
Nearly 88% of the ETF is allocated to the materials sector, which increases vulnerability to downturns in this industry.
Underperforming Holdings
Some top holdings, like Sherwin-Williams and Air Products and Chemicals, have lagged in performance, which could drag on returns.
Limited Geographic Diversification
The ETF is heavily concentrated in U.S. companies, with minimal exposure to international markets, reducing global diversification.
VAW vs. SPDR S&P 500 ETF (SPY)
AUM2.69B
RegionNorth America
Expense Ratio0.09%
Beta0.85
IssuerVanguard
Inception DateJan 26, 2004
Dividend Yield1.68%
Asset ClassEquity
Index TrackedMSCI US IMI 25/50 Materials
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume41,153
30 Day Avg. Volume35,586
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
243.99Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering108
VAW Summary
The Vanguard Materials ETF (VAW) is an investment fund that focuses on companies in the materials sector, which includes businesses involved in chemicals, metals, construction materials, and paper products. It follows the MSCI US IMI 25/50 Materials Index and includes well-known companies like Linde and Newmont Mining. This ETF could be a good choice for investors looking to diversify their portfolio or benefit from the growth potential of industries that support infrastructure and industrial development. However, it’s important to know that the materials sector can be cyclical, meaning its performance often depends on the overall economy, which can lead to ups and downs in value.
How much will it cost me?The Vanguard Materials ETF (VAW) has an expense ratio of 0.09%, which means you’ll pay $0.90 per year for every $1,000 invested. This is lower than average because it’s a passively managed fund that tracks an index, keeping costs down for investors.
What would affect this ETF?The Vanguard Materials ETF (VAW) could benefit from increased infrastructure spending or industrial growth in the U.S., as its holdings are heavily focused on companies producing essential materials like chemicals and metals. However, it may face challenges from rising interest rates, which can increase borrowing costs for construction projects, or economic slowdowns that reduce demand for materials. Regulatory changes affecting environmental standards or mining operations could also impact the ETF's performance.
VAW Top 10 Holdings
The Vanguard Materials ETF (VAW) leans heavily into the materials sector, with Linde as its largest holding. While Linde’s long-term outlook remains solid, recent performance has been sluggish, holding back the fund. On the brighter side, Newmont Mining and CRH plc are rising stars, benefiting from strong financials and strategic moves, which have bolstered the ETF’s overall performance. However, names like Sherwin-Williams and Air Products and Chemicals are lagging, weighed down by supply chain challenges and valuation concerns. With its U.S.-focused portfolio, VAW offers concentrated exposure to industrial growth but faces mixed results from its top holdings.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Linde | 16.44% | $668.44M | $196.14B | -8.53% | 66 Neutral | |
| Newmont Mining | 6.82% | $277.48M | $88.36B | 78.90% | 81 Outperform | |
| Sherwin-Williams Company | 6.06% | $246.44M | $85.51B | -3.64% | 72 Outperform | |
| CRH plc | 5.96% | $242.31M | £60.99B | 21.01% | 82 Outperform | |
| Ecolab | 5.14% | $208.90M | $72.62B | 4.84% | 66 Neutral | |
| Air Products and Chemicals | 4.28% | $174.08M | $53.99B | -21.54% | 64 Neutral | |
| Freeport-McMoRan | 4.14% | $168.39M | $59.87B | -8.53% | 67 Neutral | |
| Corteva | 3.39% | $137.92M | $41.72B | 0.95% | 71 Outperform | |
| Vulcan Materials | 2.99% | $121.49M | $38.25B | 7.07% | 72 Outperform | |
| Martin Marietta Materials | 2.79% | $113.59M | $36.97B | 5.68% | 76 Outperform |
VAW Technical Analysis
Negative
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Price Trends
204.21
Negative
201.14
Negative
194.81
Positive
Market Momentum
-1.57
Positive
33.77
Neutral
9.03
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For VAW, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 202.14, equal to the 50-day MA of 204.21, and equal to the 200-day MA of 194.81, indicating a neutral trend. The MACD of -1.57 indicates Positive momentum. The RSI at 33.77 is Neutral, neither overbought nor oversold. The STOCH value of 9.03 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VAW.
VAW Peer Comparison
Comparison Results
Performance Comparison
VAW
Vanguard Materials ETF
195.14
-9.15
-4.48%
VPU
Vanguard Utilities ETF
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XLRE
Real Estate Select Sector SPDR Fund
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VDC
Vanguard Consumer Staples ETF
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XLB
Materials Select Sector SPDR Fund
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XME
SPDR S&P Metals & Mining ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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