XLB vs VAW Stock Comparison: AI Score, Valuation, Performance and Upside
XLB and VAW both target materials sector exposure but take different paths to get there — XLB via the Materials Select Sector Index, and VAW via the MSCI US Investable Market Materials Index. The practical differences come down to issuer, cost structure, and the specific index rules each fund follows, since both are pursuing a similar investment outcome.
XLB vs VAW is largely a question of which issuer and index methodology you trust more for materials sector exposure — the underlying investment case is similar, so cost, liquidity, and tracking precision tend to be the deciding factors.
XLB holds the edge across 5 of 5 key metrics in this comparison. XLB has delivered stronger 1-year price return (+24.74% vs +20.14% for VAW).
- want concentrated exposure to chemicals, mining, and industrial materials
- prefer State Street's approach and fund lineup
- value direct exposure to commodity-linked industrial producers
- are comfortable with small sector with a limited number of large constituents
- want broader materials-sector exposure at low cost
- prefer Vanguard's approach and fund lineup
- value lower expense ratio than the SPDR materials fund
- are comfortable with thinner liquidity than XLB
| Metric | XLB | VAW |
|---|---|---|
| ETF scorei | 27.3 | 25.1 |
| Latest closei | $51.95 | $227.88 |
| 1M returni | +6.06% | +3.82% |
| 3M returni | -1.27% | -3.28% |
| 6M returni | +1.54% | -1.62% |
| 1Y returni | +24.74% | +20.14% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XLB | VAW |
|---|---|---|
| 1Y ago | $12.7K (+27.0%) started 2025-11-06 | $12.19K (+21.9%) started 2025-11-06 |
| 5Y ago | $14.31K (+43.1%) started 2021-11-08 | $13.96K (+39.6%) started 2021-11-08 |
| 10Y ago | $33.54K (+235.4%) started 2016-11-07 | $31.43K (+214.3%) started 2016-11-07 |
Hypothetical — past performance does not guarantee future results.
| Metric | XLB | VAW |
|---|---|---|
| Expense ratioi | 0.08% | 0.09% |
| Total assets (AUM)i | $8.45B | $4.38B |
| Dividend yieldi | 1.64% | 1.39% |
| Trailing P/Ei | 21.60 | 22.99 |
| Betai | 0.90 | 0.96 |
| 52-week change | 24.74% | 20.14% |
| Metric | XLB | VAW |
|---|---|---|
| 1Y returni | +24.74% | +20.14% |
| 6M returni | +1.54% | -1.62% |
| 3M returni | -1.27% | -3.28% |
| 1M returni | +6.06% | +3.82% |
| 1Y Sharpe ratio | 1.07 | 0.82 |
| Betai | 0.90 | 0.96 |
| Dividend yieldi | 1.64% | 1.39% |
| 5Y CAGR | +5.24% | +5.02% |
Over the past year, XLB and VAW have moved strongly in the same direction (correlation of 0.98), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | XLB | VAW |
|---|---|---|---|
| 1Y | Growthi | +24.74% | +20.14% |
| CAGRi | +24.76% | +20.16% | |
| Volatilityi | 18.16% | 19.24% | |
| Sharpe ratioi | 1.07 | 0.82 | |
| Sortino ratioi | 1.58 | 1.19 | |
| Max drawdowni | 12.38% | 13.42% | |
| Current drawdowni | 3.62% | 5.66% | |
| Avg drawdowni | 3.24% | 4.10% | |
| Ulcer Indexi | 4.22% | 5.11% | |
| Max daily dropi | 2.91% | 2.95% | |
| Max wkly dropi | 6.65% | 7.29% | |
| 5Y | Growthi | +29.04% | +27.70% |
| CAGRi | +5.24% | +5.02% | |
| Volatilityi | 19.17% | 19.83% | |
| Sharpe ratioi | 0.13 | 0.12 | |
| Sortino ratioi | 0.18 | 0.17 | |
| Max drawdowni | 24.72% | 25.50% | |
| Current drawdowni | 3.62% | 5.66% | |
| Avg drawdowni | 7.00% | 7.02% | |
| Ulcer Indexi | 8.57% | 8.69% | |
| Max daily dropi | 6.26% | 6.11% | |
| Max wkly dropi | 13.94% | 13.49% | |
| 10Y | Growthi | +169.15% | +158.85% |
| CAGRi | +10.41% | +9.98% | |
| Volatilityi | 20.74% | 21.29% | |
| Sharpe ratioi | 0.37 | 0.34 | |
| Sortino ratioi | 0.52 | 0.48 | |
| Max drawdowni | 37.27% | 41.13% | |
| Current drawdowni | 3.62% | 5.66% | |
| Avg drawdowni | 6.43% | 7.01% | |
| Ulcer Indexi | 8.44% | 9.22% | |
| Max daily dropi | 11.01% | 11.07% | |
| Max wkly dropi | 20.92% | 21.38% |
| Category | XLB | VAW |
|---|---|---|
| Fund name | State Street Materials Select Sector SPDR ETF | Vanguard Materials Index Fund ETF Shares |
| Type | ETF | ETF |
| Expense ratioi | 0.08% | 0.09% |
| Total assets (AUM)i | $8.45B | $4.38B |
| Dividend yieldi | 1.64% | 1.39% |
- Direct exposure to commodity-linked industrial producers
- Deep liquidity among sector SPDR funds
- Can act as an inflation and industrial-cycle hedge
- Lower expense ratio than the SPDR materials fund
- Includes more small-cap materials names for diversification
- Vanguard's indexing efficiency
- Small sector with a limited number of large constituents
- Highly cyclical and commodity-price-sensitive
- Global demand shifts (especially from China) drive returns
- Thinner liquidity than XLB
- Cyclicality and commodity sensitivity apply across the sector
- Smaller companies add volatility versus the SPDR version
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