VAW: VANGUARD MATERIALS INDEX FUND ETF SHARES
ETF Education Report: Vanguard Materials Index Fund ETF (VAW)
The Vanguard Materials Index Fund ETF (VAW) is designed to track the performance of companies in the materials sector. It provides investors with a way to gain exposure to a broad group of companies that produce, process, and store raw materials.
What this ETF is trying to do
VAW aims to provide a diversified investment in the materials industry. Instead of picking one company, it holds 114 different holdings. As of October 12, 2026, its Top Holdings include Linde PLC (14.57%), Newmont Corp (8.58%), and Freeport-McMoRan Inc (7.00%). These holdings can change over time.
What the numbers show
The data shows positive growth in both share price and total returns over several timeframes:
• Year-to-Date (YTD): The price return is 6.76%, while the total return is 7.89%.
• One Year: The price return is 9.29%, and the total return is 10.88%.
• Three Year: The price return is 29.76%, and the total return is 36.07%.
• Five Year: The total return is 36.11%.
Price return measures only the change in the share price. Total return is a broader measure that includes the distributions paid to investors.
For a simple example, if an investor had put $10,000 into the fund roughly one year ago at the estimated price of $202.74, the price-only growth (9.29%) would have increased that principal to approximately $10,929.
Income and Distribution Explanation
VAW pays distributions usually every quarter. Over the last 12 months, it has made 4 payments totaling $3.18 per share. This results in a distribution yield of approximately 1.44%.
It is important for beginners to remember that distribution yield is not the same as total return. While a high yield can provide cash income, it does not guarantee that the share price will stay stable or grow.
NAV Erosion Explanation
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
However, looking at price-based evidence, the fund has an erosion score of 100, and the label states "No price erosion detected." The severe erosion-risk flag is false, meaning the fund's price trend has not triggered a warning.
Pros
• Positive Growth: The fund has shown positive price and total returns over the short and long term.
• Diversification: It holds over 100 different companies in the materials sector.
• Strong Income Grade: It has an income rating grade of "A."
Cons
• Sector Concentration: Because it only invests in materials, it is subject to the risks of that specific industry.
• Modest Yield: The distribution yield is relatively low compared to funds specifically designed for high income.
Beginner Takeaway
VAW is a sector-specific ETF that focuses on materials. Historically, it has provided both share-price growth and modest quarterly income. Investors typically use funds like this to diversify their portfolios by adding exposure to raw materials and chemicals.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | LINDE PLC | LIN | 14.57% |
| 2 | NEWMONT CORP | NEM | 8.58% |
| 3 | FREEPORT-MCMORAN INC | FCX | 7.00% |
| 4 | SHERWIN-WILLIAMS CO | SHW | 4.97% |
| 5 | ECOLAB INC | ECL | 4.61% |
| 6 | AIR PRODUCTS AND CHEMICALS INC | APD | 4.14% |
| 7 | CRH PLC | CRH | 4.05% |
| 8 | CORTEVA INC | CTVA | 3.64% |
| 9 | NUCOR CORP | NUE | 3.57% |
| 10 | VULCAN MATERIALS CO | VMC | 2.25% |