VAW vs XLB
Vanguard Materials Index Fund ETF Shares vs State Street Materials Select Sector SPDR ETF
Last updated: 2026-04-02
Vanguard Materials Index Fund ETF Shares (VAW) is an exchange-traded fund that provides exposure to us sector - materials securities. It charges a low expense ratio of 0.09%. The fund offers a moderate dividend yield of 1.40%. Launched in 2004, the fund has a 22-year track record.
State Street Materials Select Sector SPDR ETF (XLB) is an exchange-traded fund that provides exposure to us sector - materials securities. It charges a low expense ratio of 0.08%. The fund offers a moderate dividend yield of 1.73%. Launched in 1998, the fund has a 28-year track record.
Quick Verdict
Both funds have nearly identical expense ratios (0.08% vs 0.09%), so fees are not a differentiator here. VAW has edged ahead over the past year (20.6% vs 16.9%).
Key Metrics
Performance Chart
Indexed to 100 at start (5-year comparison)
Performance Comparison
Fee Impact Over Time
Estimated fee cost difference assuming 8% annual returns
Risk Metrics
Based on 5 years of daily returns
Dividend Comparison
Top Holdings
9 of top 10 holdings overlap (90% overlap in top holdings)
VAW Top Holdings
| Name | Weight |
|---|---|
| Linde plcLIN | 14.44% |
| Newmont CorporationNEM | 8.63% |
| Freeport-McMoRan Inc.FCX | 5.95% |
| The Sherwin-Williams CompanySHW | 5.20% |
| CRH plcCRH | 4.89% |
| Ecolab Inc.ECL | 4.78% |
| Air Products and Chemicals, Inc.APD | 3.58% |
| Corteva, Inc.CTVA | 3.29% |
| Vulcan Materials CompanyVMC | 2.49% |
| Martin Marietta Materials, Inc.MLM | 2.48% |
XLB Top Holdings
| Name | Weight |
|---|---|
| Linde plcLIN | 14.42% |
| Newmont CorporationNEM | 7.36% |
| Freeport-McMoRan Inc.FCX | 5.26% |
| Corteva, Inc.CTVA | 4.75% |
| Air Products and Chemicals, Inc.APD | 4.64% |
| The Sherwin-Williams CompanySHW | 4.60% |
| CRH plcCRH | 4.51% |
| Vulcan Materials CompanyVMC | 4.51% |
| Martin Marietta Materials, Inc.MLM | 4.40% |
| Nucor CorporationNUE | 4.39% |
Which One Should You Choose?
Choose VAW if...
recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.
Choose XLB if...
you prioritize dividend income and want higher regular distributions from your portfolio.
Either works if...
you just need broad us sector - materials exposure. Both are solid options — pick whichever your brokerage offers commission-free.