VAW - ETF AI Analysis
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Vanguard Materials ETF (VAW)
Rating:67Neutral
Price Target:―
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered solid gains so far this year, showing that its portfolio has recently been working well for investors.
Leading Holdings with Strong Momentum
Several of the largest positions, such as Freeport-McMoRan, Air Products and Chemicals, Corteva, and Nucor, have shown strong performance, helping support the fund’s overall results.
Low Expense Ratio
The fund’s very low annual fee means more of the investment returns stay in investors’ pockets instead of going to costs.
Negative Factors
Heavy Concentration in Materials Sector
With most of its assets in the materials industry, the ETF is highly sensitive to swings in commodity prices and the economic cycle.
High U.S. Market Concentration
Almost all of the fund’s holdings are in U.S. companies, offering very limited geographic diversification.
Notable Underperforming Top Holdings
Some major positions like Newmont Mining, Sherwin-Williams, CRH, and Vulcan Materials have recently shown weaker performance, which can drag on the fund’s returns if the trend continues.
VAW vs. SPDR S&P 500 ETF (SPY)
AUM3.05B
RegionNorth America
Expense Ratio0.09%
Beta0.82
IssuerVanguard
Inception DateJan 26, 2004
Dividend Yield1.44%
Asset ClassEquity
Index TrackedMSCI US IMI 25/50 Materials
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume122,471
30 Day Avg. Volume57,145
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
274.74Price Target Upside― Downside
Rating ConsensusModerate Buy
Number of Analyst Covering110
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
VAW Summary
Vanguard Materials ETF (VAW) is a fund that tracks the MSCI US IMI 25/50 Materials Index, giving you broad exposure to U.S. materials companies. These are businesses that make chemicals, metals, construction materials, and other basic products that support building, manufacturing, and infrastructure. Well-known holdings include Linde and Sherwin-Williams. An investor might choose VAW to diversify a stock portfolio and potentially benefit from growth when the economy and construction activity are strong. A key risk is that it is heavily focused on the materials sector, so its price can rise and fall sharply with commodity prices and economic cycles.
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
VAW is a pure play on U.S. materials, with industrial gases and chemicals setting the tone. Linde is a heavyweight here, but its recent slide has taken some wind out of the fund’s sails. Newmont and Freeport-McMoRan have been rising on the back of stronger metals momentum, helping offset weakness in names like Sherwin-Williams and CRH, which have been lagging as construction and coatings lose steam. Nucor’s steady strength adds another pillar, leaving the ETF firmly anchored in cyclical, commodity-linked businesses.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Linde | 14.57% | $665.25M | $216.61B | -0.93% | 66 Neutral | |
| Newmont Mining | 8.58% | $391.80M | $127.95B | 37.27% | 81 Outperform | |
| Freeport-McMoRan | 7.00% | $319.82M | $103.84B | 93.86% | 67 Neutral | |
| Sherwin-Williams Company | 4.97% | $227.05M | $79.89B | -2.95% | 66 Neutral | |
| Ecolab | 4.61% | $210.71M | $78.35B | 2.68% | 66 Neutral | |
| Air Products and Chemicals | 4.14% | $189.00M | $62.74B | 3.06% | 46 Neutral | |
| CRH plc | 4.05% | $185.07M | $56.58B | -26.91% | 76 Outperform | |
| Corteva | 3.64% | $166.26M | $52.39B | 14.71% | 75 Outperform | |
| Nucor | 3.57% | $162.82M | $56.10B | 79.67% | 74 Outperform | |
| Vulcan Materials | 2.25% | $102.75M | $31.75B | -18.77% | 77 Outperform |
VAW Technical Analysis
Negative
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Price Trends
230.12
Negative
229.55
Negative
227.03
Negative
Market Momentum
-2.73
Positive
37.38
Neutral
18.64
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 227.81, equal to the 50-day MA of 230.12, and equal to the 200-day MA of 227.03, indicating a bearish trend. The MACD of -2.73 indicates Positive momentum. The RSI at 37.38 is Neutral, neither overbought nor oversold. The STOCH value of 18.64 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
221.25
19.35
9.58%
AIRR
First Trust RBA American Industrial Renaissance ETF
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VIS
Vanguard Industrials 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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IYM
iShares U.S. Basic Materials 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.
DisclaimerThis 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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