VAW

📎 Investment Objective

The Vanguard Materials ETF (VAW) seeks to track the performance of the MSCI US Investable Market Materials 25/50 Index, which measures the investment return of the materials sector of the U.S. equity market.

✨ Key Features

• Provides exposure to a diversified portfolio of U.S. materials companies, including chemicals, construction materials, metals and mining, and paper and forest products firms.
• Low expense ratio of 0.00%, making it one of the lowest-cost materials sector ETFs available.
• Broad market capitalization representation, including large-, mid-, and small-cap stocks.
• Tracks a market-cap-weighted index, providing exposure proportional to the size of each company.

⚠️ Primary Risks

• Sector concentration risk, as the fund is focused solely on the materials sector, which may underperform the broader market.
• Equity market risk, as the value of the underlying stocks can fluctuate with changes in the overall stock market.
• Potential for higher volatility compared to the broader market, as the materials sector can be sensitive to economic conditions and commodity price changes.
• Tracking error risk, as the fund may not perfectly replicate the performance of the underlying index.

👤 Best For

The Vanguard Materials ETF may be suitable for investors seeking targeted exposure to the U.S. materials sector as part of a diversified portfolio. It may be particularly appealing to investors with a long-term investment horizon who are comfortable with the higher volatility and sector-specific risks associated with this type of fund.