Vanguard Materials ETF (VAW): Complete Beginner's Guide
Vanguard Materials ETF (VAW) is a materials ETF from Vanguard with an expense ratio of 0.10% and $3.0B in assets under management. Our Beginner Suitability Score: 8.5/10 (Great for Beginners). 5-year annualized return: 10.00%.
Last updated: April 2026
Vanguard • Materials
Expense Ratio
0.10%
AUM
$3.0B
Dividend Yield
1.80%
Inception
2004
Beginner Score
8.5/10
What is Vanguard Materials ETF?
VAW invests in companies that produce raw materials like chemicals, metals, paper, and construction supplies. These businesses tend to benefit from infrastructure spending, housing construction, and manufacturing growth. The fund is a straightforward way to gain exposure to the building blocks of the economy at a low Vanguard expense ratio.
VAW is managed by Vanguard and has been available since 2004. With $3.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.10%, which means for every $10,000 you invest, you pay approximately $10 per year in management fees.
VAW at a Glance — Key Metrics
| Expense Ratio | 0.10% |
| Total Holdings | 120 |
| P/E Ratio | 18.5 |
| Beta | 1.05 |
| Dividend Yield | 1.80% |
| AUM | $3.0B |
| Inception Year | 2004 |
| Issuer | Vanguard |
Top 10 Holdings in VAW
VAW holds 120 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Linde Plc | LIN | 16.00% |
| 2 | Sherwin-Williams Co. | SHW | 8.00% |
| 3 | Air Products & Chemicals | APD | 6.00% |
| 4 | Freeport-McMoRan | FCX | 5.50% |
| 5 | Ecolab Inc. | ECL | 5.00% |
| 6 | Newmont Corp. | NEM | 4.50% |
| 7 | Dow Inc. | DOW | 4.00% |
| 8 | Nucor Corp. | NUE | 3.50% |
| 9 | DuPont de Nemours | DD | 3.00% |
| 10 | International Flavors | IFF | 2.50% |
VAW's top holding is Linde Plc (LIN) at 16.00%, followed by Sherwin-Williams Co. (SHW) at 8.00% and Air Products & Chemicals (APD) at 6.00%. The top 10 holdings account for 58.00% of the fund's 120 total positions.
View data table
| Rank | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Linde Plc | LIN | 16.00% |
| 2 | Sherwin-Williams Co. | SHW | 8.00% |
| 3 | Air Products & Chemicals | APD | 6.00% |
| 4 | Freeport-McMoRan | FCX | 5.50% |
| 5 | Ecolab Inc. | ECL | 5.00% |
| 6 | Newmont Corp. | NEM | 4.50% |
| 7 | Dow Inc. | DOW | 4.00% |
| 8 | Nucor Corp. | NUE | 3.50% |
| 9 | DuPont de Nemours | DD | 3.00% |
| 10 | International Flavors | IFF | 2.50% |
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VAW Performance History
Here's how VAW has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.00%
1 Year
9.00%
3 Year
5.00%
5 Year
10.00%
10 Year
9.00%
VAW has returned 10.00% annualized over 5 years and 9.00% over 10 years. YTD return is 2.00%.
View data table
| Period | Return |
|---|---|
| YTD | 2.00% |
| 1 Year | 9.00% |
| 3 Year | 5.00% |
| 5 Year | 10.00% |
| 10 Year | 9.00% |
Beginner Suitability Score: 8.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
VAW scores 8.5/10 because it has very low fees, can be more volatile than the broader market, offers broad diversification across 120 holdings, and has been available since 2004, giving it a proven track record.
How to Buy VAW — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "VAW" — Use the search bar in your brokerage platform to find Vanguard Materials ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
VAW Sector Allocation
Here's how VAW distributes its investments across different sectors of the economy:
VAW's largest sector allocation is Materials at 93.0%, followed by Industrials at 2.0% and Energy at 1.2%.
View data table
| Sector | Weight |
|---|---|
| Materials | 93.0% |
| Industrials | 2.0% |
| Energy | 1.2% |
| Consumer Discretionary | 1.0% |
| Health Care | 0.8% |
| Technology | 0.7% |
| Financials | 0.7% |
| Consumer Staples | 0.6% |
Dollar Cost Averaging Into VAW
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With VAW's expense ratio of 0.10%, a $10,000 investment would lose approximately $856 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.
VAW's expense ratio of 0.10% costs $856 on a $10,000 investment over 20 years (assuming 8% annual return). Without fees, the investment would grow to $46,610 instead of $45,754.
View data table
| Year | Without Fees | With Fees | Fee Cost |
|---|---|---|---|
| 0 | $10,000 | $10,000 | $0 |
| 5 | $14,693 | $14,625 | $68 |
| 10 | $21,589 | $21,390 | $199 |
| 15 | $31,722 | $31,284 | $438 |
| 20 | $46,610 | $45,754 | $856 |
Pros and Cons of VAW
Pros
- ✓Direct exposure to commodity producers that benefit from infrastructure spending
- ✓Includes both industrial chemicals and precious metals mining companies
- ✓Low Vanguard expense ratio keeps costs minimal for sector-specific investing
- ✓Tends to perform well during economic expansions and inflationary environments
Cons
- ✗Cyclical sector that suffers during economic slowdowns and recessions
- ✗Commodity price fluctuations can cause significant short-term volatility
- ✗Relatively concentrated fund with the top holding Linde representing 16% of assets
Frequently Asked Questions
Is VAW a good ETF for beginners?▾
VAW has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.
What is the expense ratio of VAW?▾
VAW has an expense ratio of 0.10%. This means for every $10,000 you invest, you pay approximately $10 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in VAW?▾
You can invest in VAW with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does VAW pay dividends?▾
Yes, VAW pays dividends with a current yield of approximately 1.80%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in VAW?▾
The top holdings in VAW include Linde Plc (16.00%), Sherwin-Williams Co. (8.00%), Air Products & Chemicals (6.00%), and more. The fund holds 120 total positions, providing broad diversification across many companies.
What sectors does VAW invest in?▾
VAW's largest sector allocations are Materials (93.00%), Industrials (2.00%), Energy (1.20%). This sector distribution shows a focus on materials stocks.
How much do VAW's fees cost over time?▾
With an expense ratio of 0.10%, a $10,000 investment in VAW would lose approximately $856 to fees over 20 years (assuming 8% annual returns). This is a reasonable fee level.